ARTICLE · 15 NOVEMBER 2022

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Change In Prices Not A Justification For Refusal To Execute Tender Contract

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On the 13 February 2019, the Agency issued a public call for offers for the resurfacing of various rural roads.

MaltaGovernment, Public Sector

Miguel Pellegrini Petit

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A change in the original prices quoted by a third-party supplier to a contractor after an offer has already been submitted by the contractor to a contracting authority does not entitle the contractor to refrain from appearing upon the final contract. This is what the First Hall, Civil Court held in its judgement decided on the 29 of September 2022 in the names "Agency for Infrastructure Malta vs. Restoration and Construction Services Group Limited", whereby it condemned Restoration and Construction Services Group Limited (the "respondent") to pay damages to the Agency for Infrastructure Malta (the "Agency") following the respondent's refusal to execute the contract despite having already submitted its offer. Notwithstanding that the case at hand ensued from a matter of public procurement, in order to decide the claims of the Agency, the Court provided an analysis of the respective obligations emanating from pre-contractual and contractual stages of a tender contract.

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