What consequences could the pandemic have on the performance of contracts with the Administration?

Through Instruction No. 03/GMF/2020, the Ministry of Finance determines that the declaration of the state of emergency as a result of the pandemic is a case of force majeure, thus causing the temporary suspension of obligations in the performance of contracts without guarantee funding.

In this sense, the Instruction sets-forth that excluding contracts and procedures in the health, education and social action sectors, or to those related to logistical supply, sanitation and others whose source of funding has been previously secured, as long as the Transitional Measures for the Response to the Oil Price Reduction and the Impact of the Pandemic of COVID-19 are in force, the Budget Units should:

  1. Suspend the implementation of all contracts under the Public Investment Programme (PIP) whose source of financing is not assured;
  2. Suspend the execution of all non-priority and structural contracts within development support expenditure, without guaranteed financing;
  3. Reserve the amounts available for payment of priority and essential contracts at this time, suspending all others.

 

What about priority and strategic public works?

Presidential Decree 142/20 authorizes the resume of public works considered to be priority and strategic, from 26 May onwards while other public and private works may also resume after 8 June 2020 (Article 26).

 

 

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This information is being updated on a regular basis.

The information provided and the opinions expressed herein have been prepared with the help of VdA Legal Partners and are of a general nature. They are not in lieu of appropriate legal advice in connection with specific cases.