Note. Amendments to the public procurement re construction as from January 01, 2016

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The Law of the Republic of Kazakhstan №434-V On Public Procurement was signed on December 04, 2015. This Law is in force starting January 01, 2016. New Law introduces changes in construction sphere as well.

In New Law there is also the same requirement, which limits the participation in the public procurement.

A potential supplier does not have the right to participate in the public procurement, if a potential supplier, and (or) its employee provided the expert, consulting, and (or) other services for the preparation of public procurement to the customer or the organizer of public procurement, participated as a chief designer or a sub-designer to develop a feasibility study and (or) project (design estimates) documentation for construction of the facility, which is the subject of the conducted public procurement, except for the participation of the developer of the feasibility study in public procurement for the development of project (project-estimate) documentation. However, there is a new exception that this requirement do not apply to the projects implemented in accordance with the international building standards.

Public procurement in case of acquisition of services for the author’s supervision over the development of project documentation of the objects of capital construction, the author’s supervision over the construction, reconstruction and the capital repair of the objects of capital construction by the respective authors will be carried out from a single source by signing a public procurement contact. This process will be the following:

  • The customer determines the supplier and concludes a contract on public procurement through the web portal of public procurement.
  • The customer no later than ten working days from the date of signing a public procurement contact shall post on the web portal of public procurement report in the form established by the legislation. At that, report should include justification of the selection of the supplier, the price of the contract on public procurement, and also other terms of the public procurement contract.

According to the Law, which is considered void starting January 01, 2016, the public procurement in case of acquisition of services for the author’s supervision is also carried out through the conclusion the contract on public procurement, but in accordance with the civil legislation. At that, in the Law there is added, that the effect of The Law On Public Procurement does not extend to this category of services.

In the New Law there is no such type of public procurement like public procurement, carried out without the application of the Law On Public Procurement, governing the selection of the supplier and the conclusion of the public procurement contract with him (her). This type of public procurement will be carried out from a single source by conclusion оf a contact on public procurement and the procedure of carrying out will be regulated by the Law On Public Procurement.

By Artyushenko & Partners
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