Public Works and Service Management Contracts

Works Contracts and Infrastructure Projects

Works contracts involve the construction of real property such as roads, railways, ports, canals, dams, sea signage, monuments, and naval bases.

Scope of Works Contracts

• The performance of work to alter the form or substance of the ground or subsoil, such as polls, surveys, and beach restoration.
• The reform, repair, maintenance, or demolition as defined in the previous two points.

Essential Project Documentation

A building project must include a memory describing the purpose of the work, along with the following components:

• The general plans.
• The list of special technical requirements.
• A budget consisting of several partial sections or a single total.
• A development program of the work.
• All references that will build the layout of the work.
• The study of health and safety.
• All documentation standards required under legal or regulatory nature.

Classification of Construction Works

• Works of first establishment: The creation of a new property.
• Renovation or major repair: Work performed on existing real property.
• Simple repair works: Reversing the deterioration in real property resulting from accidental causes.
• Repair and maintenance works: When damage occurs due to the passage of time.
• Works of demolition: The demolition or destruction of property.

Modifications to Works Contracts

Modifications are presented in the LCSP and depend on the voluntary director of the project. This requires a record of modification work, which will require:

• A proposal made by the optional technical director of the work (including amount and description).
• A hearing with the contractor.
• Contracting compliance.
• A certificate of the existence of credit.

Public Service Management Contracts

Contract management services are those under which the Public Administration entrusts a person or company with the management of a service whose provision has been assumed as the Administration's own competence.

Types of Service Management Contracts

• Granting public services: The employer manages the service at their own risk and interest.
• Management: The Administration and the employer both participate in the outcome of the service operation in the proportion established in the contract.
• Concert with a natural or legal person: Performing similar services to those of the public service concerned.
• Mixed economy society: Authorities participate, either directly or through a public entity, in competition with natural or legal persons.

Maximum Duration and Extensions

Contracts may not be perpetual or indefinite. The duration is necessarily fixed in the particular administrative clauses, including any likely extensions. The total term, including extensions, may not exceed the following periods:

• Fifty years: In contracts involving the execution of works and public service operation.
• Twenty-five years: In contracts involving the exploitation of a public service not related to health services.
• Ten years: In contracts involving the exploitation of a public service whose object consists of the provision of health services, provided they are not included in the first category.