Public Works Contracts: Award, Classification, and Management

Contracts for Work in Public Administration

Contracts for work are formal agreements between a public administration entity and a contractor. These agreements primarily involve:

• The construction of real estate.
• The performance of work to alter the form or substance of land or subsoil.
• Land reform, repair, maintenance, or demolition of properties defined above.

Awarding Public Works Contracts

Public works contracts are typically awarded through several established procedures, designed to ensure transparency and competitiveness:

• Open Procedure: This method allows any interested economic operator to submit a tender.
• Restricted Procedure: Only those economic operators specifically invited by the contracting authority may submit tenders.

Both open and restricted procedures can be conducted via:

• Auction: The contract is awarded to the bidder who offers the lowest price.
• Competition: This is the most common form for construction contracts. The award is granted to the bidder who presents the most advantageous proposal, considering various criteria beyond just price.

Negotiated Procedure

The negotiated procedure is less common and may or may not involve prior advertisement.

Negotiated Procedure with Advertisement

This procedure is utilized in specific circumstances, such as:

• When financial bids in open and restricted procedures are irregular or unacceptable.
• When works are performed exclusively for research purposes.
• In cases where the nature or inherent risks of the works do not permit prior overall pricing.

Negotiated Procedure Without Advertisement

This procedure is applied in exceptional situations, including:

• When a contract could not be awarded in an open or restricted procedure due to a lack of suitable bidders.
• When the execution of the works can only be awarded to a particular company due to unique circumstances or proprietary rights.

Classification of Public Works

Public works can be broadly classified into the following categories:

• Construction of First Establishment: Works leading to the creation of a new property.
• Reform or Major Repairs: These encompass works of expansion, improvement, modernization, adaptation, or reinforcement of an existing property.
• Simple Repairs: Works considered necessary to correct impairment of a property due to accidental causes.
• Conservation and Maintenance Works: Undertaken when damage occurs due to the passage of time, aimed at preserving the property's condition.
• Demolition Works: Projects aimed at the overthrow or destruction of real estate properties.

Execution and Contractor Responsibility

The execution of public works begins with the detailed layout of the project. All works must be implemented in strict compliance with the stipulations outlined in the contract documents and the approved project plan. Throughout the development of the works and to ensure compliance during the warranty period, the contractor remains responsible for any construction defects that may be observed.

Changes in Works Contracts

Any modifications to existing works contracts require a series of specific actions:

• A technical proposal prepared by the optional director of the work, accompanied by the approximate amount of the change and a detailed description of the works to be performed.
• A formal hearing with the contractor.
• A Contracting Compliance Certificate confirming the existence of sufficient credit for the proposed change.

Extinction of Works Contracts

Works contracts may be terminated upon their fulfillment, or through other forms of termination such as rescission or mutual agreement.