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Legal support of the contract for the purchase signing conditions

After the bidder has won, an official message about the desire to sign a contract with them is posted on the electronic resource. At the same time, the ProZorro system informs all participants, without exception, about the results of the tender. They have the right to ask the customer to explain what competitive advantages the winner has. Additionally, participants have the right to file a complaint with the Authorized Committee if they believe that violations were committed during the tender process.

If there are no complaints from the participants, the customer and the winner draw up a contract and sign it. The signing process is carried out no later than 20 days after the official application for signing the contract. The bidding process is closed at this stage. Decisions taken during the tender process are made following the established Protocol of the Authorized Organization or the Tender Committee.

A key element of procurement efficiency is legal actions to conclude a contract between business entities. How the agreement will specify the terms of cooperation affects its further implementation. In this regard, the parties at the stage of approval of the draft agreement should take into account risk factors in the course of its implementation, especially if it concerns the purchase of products for public financial security.

Drafting a purchase agreement

Drawing up a procurement contract based on the results of a tender is based on the rules prescribed in the Civil and Economic codes of Ukraine, as well as in the Law On public procurement.

The procedure for drawing up this document is the final stage of the procurement process. At this stage, the customer and the contractor (the winner of the auction) must take the issue of drawing up the contract seriously. This affects the further fulfillment of the conditions set out in the document, as well as the possibility of invalidating it.

The list of specified conditions in the document (including penalties) determines how effectively the contract will be implemented.

What is the time frame for drawing up a purchase agreement

In the law on public procurement, the terms for signing a purchase agreement are as follows:

When conducting open-type auctions, the contract is drawn up after 10 days from the date of publication on the website of the Authorized organization of the notification of the desire to conclude the contract. But at the same time, you can implement the procedure in practice no later than 20 days.

→ Please note: when conducting auctions that are regulated by Law On public procurement, if there are complaints from other participants in the process, the signing of the contract is suspended for an indefinite period. The suspension will continue until the authority grants an appeal.

Features of making changes to the terms of the agreement 

The legislation clearly states that the key terms of a contract cannot be changed from the moment it is signed until the obligations of the parties and the terms of the document are fulfilled. At the same time, there are 8 grounds for implementing the procedure for making changes to the text of the procurement contract. They are spelled out in part 4 of article 36 of the law on public procurement.

It is also important to take into account the fact that the text of the law does not contain restrictions on changing the content of non-essential clauses of the contract.

To implement the change procedure, you will need to follow these steps:

  • provide documents that show these changes;
  • register changes;
  • define provisions that allow the procedure to be implemented.

A common reason for changing the terms of a contract is to change the cost. Here, the persons acting as the customer and contractor must specify the mechanisms for changing the cost of the purchased item at the stage of drawing up the contract, and confirm the adjustment made. For example, to change the purchase price, you can specify in the contract that the subject of the purchase depends on the currency component.

The current legislation provides for the possibility of extending the contract for the next year, but for a period sufficient for a new purchase and in the amount of up to 20% of the final evaluation of the contract if the item of expenditure for the implementation of these goals is approved by current legislation.

Procedure for drawing up a refusal to draw up a contract

If the winner of the tender refuses to draw up a purchase contract, the customer must reject the winner’s tender offer and determine a new winner among the remaining participants, if the validity period of their tender offers is relevant. It is worth noting that if the terms of participation in the auction contained a clause about mandatory tender security, it is not reimbursed to the refused participant.

Kasyanenko & Partners Law Company specialists will help you to draw up a Contract correctly, taking into account all the nuances and pitfalls, analyze the already written contract, and protect your rights and interests in case of non-compliance with the terms of the contract.

Dmytro Kasyanenko

Lawyer, managing partner of the Kasyanenko & Partners Law Firm. Since 2002, he has gained extensive legal experience in key positions in business structures and the public sector in the field of law and finance.

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