Public procurement can be an interesting and stable source of contracts for companies and tradesmen. The state, regions and municipalities issue thousands of them every year – from small services to large construction projects. Yet many businesses do not participate at all because they do not know where to look for public contracts, how to bid for them, and what they must meet. Let’s take a look.
A public contract is the award of a contract for consideration by which a contracting authority procures supplies, services or works in accordance with the rules of law. Typically, it involves the state, ministries, municipalities, regions, contributory organisations, but also state-owned enterprises or certain public institutions.
From a business perspective, it is important to know that public procurement is not just about billion-dollar tenders. In addition to above-limit procedures, there are also below-limit public contracts and small-scale public contracts, which are very accessible for smaller companies and sole traders. It is often contracts for sole traders that fall under the category of small-scale procurement – for example, IT services, building maintenance, marketing, accounting or small construction contracts.
Public procurement is primarily governed by the Public Procurement Act (PPA), formerly known to entrepreneurs as the “Public Procurement Act”. This law sets out the rules on how the contracting authority must proceed and what rights and obligations suppliers have.
The basic question for most entrepreneurs is where they actually find public procurement. The answer is simple – on specialised portals and in public procurement registers.
The most important source is the Public Procurement Bulletin, which operates under the Ministry of Regional Development as the official public procurement register. The Public Procurement Bulletin publishes above-limit contracts (also at European level) and a substantial part of below-limit contracts. If you want to systematically deal with public procurement, monitoring the Bulletin is practically essential.
In addition, there are a number of commercial and semi-public tools, often referred to as public procurement portals. These portals aggregate contracts from different sources, allow filtering by sector (e.g. construction contracts), region or estimated value, and often offer alerts on new contracts.
Small-scale public procurement is a specific chapter. For these, the law does not require publication in the Bulletin, but only so-called appropriate publication. This can mean publication on the municipality’s website, the authority’s website or the contracting authority’s internal profile. This is why these contracts are harder to trace – and also present an interesting opportunity for those who know where to look.
Public procurement is full of formal rules and tight deadlines. A small mistake can get you excluded from a tender, even if you have the best offer. We can help you prepare your tender, check the tender documents, qualify and defend against illegal practices by the contracting authority.
To engage successfully in public procurement, it is important to distinguish between the basic types of procurement. These differ not only in value but also in administrative complexity.
Small-scale public procurement is the simplest. The Public Procurement Act does not lay down a precise procedure for them, but only requires compliance with the principles of transparency, equal treatment and non-discrimination. The contracting authority will often approach several suppliers directly. This is an ideal entry point for tradesmen.
Sub-limited public procurement already has stricter rules. The contracting authority must follow the law, publish the contract and allow for wider competition. The administration is more demanding but still manageable for smaller companies.
An above-limit public contract is the most complex procedure. Typically, it involves large state contracts or large construction contracts. Participation here requires experience, careful preparation and often legal support.
We have written about the specifications of each category of public procurement in a separate article.
The actual application for a public contract usually has several clearly defined steps. The first of these is a careful study of the tender documents. This is where the contracting authority describes what it is asking for, what the evaluation criteria are and what conditions the supplier must meet.
The second step is to verify the qualifications. The Public Procurement Act sets out the basic qualifications – typically being debt-free, of good repute and authorised to do business. For more complex contracts, technical or economic qualifications, such as references from similar contracts, may also be required.
This is followed by the actual preparation of the tender. This must correspond exactly to the requirements of the contracting authority or risk being rejected. A common mistake is a formal error – a missing signature, incorrect format or failure to meet a deadline.
The submission of a tender is nowadays usually done electronically via the contracting authority’s profile or a specialised system. For government procurement, electronic communication is standard.
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Public procurement is strictly formalised. Even a small mistake can mean exclusion from the procedure. Typical risks include underestimating the tender documents or misunderstanding the evaluation criteria.
Deadlines also deserve special attention. These are crucial in public procurement and missing them cannot be remedied. It is equally important to monitor any changes to the terms of reference published by the contracting authority in the form of additional information.
If you are unsure whether the contracting authority is complying with the Public Procurement Act, you do not have to sit back and watch. The legislation gives suppliers several defence mechanisms to defend themselves against illegal or non-transparent practices.
The most common tool is objections. These can be submitted directly by the supplier to the contracting authority if it considers that the tender conditions, the conduct of the procedure or the decision to select the supplier violate the law. Objections have fixed deadlines and must meet certain content requirements. If the contracting authority accepts them, it can amend its decision or correct the procedure without the intervention of another body.
If the contracting authority does not uphold the objections, the supplier can file a petition with the Office for the Protection of Competition (OPC). The OPC oversees public procurement and can annul the contracting authority’s illegal procedure, impose corrective measures or prohibit the conclusion of a contract. This step is already more formal, administratively demanding and often involves the obligation to post a bond.
It is advisable to consult a lawyer precisely because of the short deadlines, the strict formal requirements and the risk of procedural errors. Professional legal advice will help you evaluate whether the defence makes sense, choose the right course of action and minimise the risk of being permanently excluded from the proceedings.
Legal advice is particularly useful for under- and over-limit public contracts, where there is a higher risk of errors and a higher financial value of the contract. A lawyer can help you prepare your bid, check your qualifications and defend against illegal practices by the contracting authority.
We were approached by a small construction company that wanted to bid on a public contract to renovate a municipal building. The tender was submitted on time and met the technical and price requirements of the contracting authority. Nevertheless, it was excluded from the tender procedure – the reason was a purely formal error in the affidavit, which had no effect on the tender itself.
The company did not want to accept the contracting authority’s decision and turned to us. After a legal assessment, we concluded that the contracting authority’s procedure did not comply with the Public Procurement Act. We prepared objections in which we pointed out that the procedure was unduly formalistic and violated the principle of equal treatment. The contracting authority had to reconsider its decision, re-included the company in the procedure and the contract continued.
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Public procurement is not just for the big players. Small-scale and sub-limited procedures make it possible for smaller companies and sole traders to participate successfully. The key to success is to know where to look for public contracts, to understand the basic rules of public procurement and not to underestimate the preparation of the tender.
Public procurement represents a stable opportunity for companies and sole traders to win contracts, not only in the form of large government tenders, but also in the form of smaller scale contracts that are accessible to start-ups. Public procurement is governed by the Public Procurement Act, which sets out rules for the procedure of contracting authorities and the rights and obligations of suppliers. Public contracts can be sought mainly in the Public Procurement Bulletin and on specialised public procurement portals, while small-scale contracts tend to be published only through appropriate publicity on the websites of individual contracting authorities. To participate successfully, it is crucial to distinguish between small-scale, under- and over-limit public contracts, to study the tender documents carefully, to meet the qualification requirements, to prepare the tender correctly and to comply with all deadlines and formalities. If the contracting authority is acting illegally, suppliers can defend themselves by filing objections or petitions to the Office for the Protection of Competition, and, especially for higher-value contracts, it is worth contacting a lawyer to help avoid mistakes and increase the chances of success.
Most often in the Public Procurement Bulletin and on public procurement portals. Small-scale contracts can be monitored directly on the websites of municipalities and institutions.
Often not for small-scale contracts. References are usually already required for sub-limit and over-limit public contracts.
Formal errors can lead to exclusion. In this case, it is advisable to contact a lawyer and consider filing an objection.
Yes, especially for higher-value contracts. A lawyer can help you minimize risks and increase your chances of success.
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