The new amendment to the Czech Public Procurement
Act (the "Act") will be effective from 1 April 2012. The
amendment's key principle is "the best consideration for
the best price". The crucial changes introduced by the
amendment are as follows:
Reduction of financial thresholds
The thresholds for public supply contracts and public service
contracts are to be reduced to CZK 1 million/ EUR 40,000 (from CZK
2 million/ EUR 80,000) and construction work contracts to CZK 3
million/ EUR 120,000 (from CZK 6 million/ EUR 240,000). The
contracting authorities have a duty to publish a preliminary
announcement of their intent to hold a public tender, including the
reasons behind the intention, at least one month prior to the
initiation of public tender proceedings. Practically, this means
that a much broader volume of public contracts will be contracted
through the public tender process. It creates new possibilities for
business entities to participate in public
