Major Amendment To The Public Procurement Act

As of 1 April 2012, the Czech Public Procurement Act (Act No. 137/2006 Coll.) has been significantly amended. The aim of the Amendment, according to its promoters, is to obtain the best price without the possibility of collusion. For this reason, the Amendment brings many changes to the Act, which have to be taken into account in the field of public procurement.

1. Reduction of financial thresholds for compulsory procedure under the Act

The Amendment reduces the current financial thresholds for small-scale public contracts (now CZK 2 million without VAT for public supply and service contracts, or CZK 6 million without VAT for public works contracts) to the amount of CZK 1 million without VAT for public supply and service contracts, or CZK 3 million without VAT for public works contracts. With effect from 1 January 2014 onwards, these financial thresholds for all public contracts will be unified to the amount of CZK 1 million without VAT.