This Thursday, the President of the Republic promulgated a decree-law that extends the exclusive and temporary price regime in public contracts until the end of the year, noting that he did so immediately, given the urgency.
This decision of the head of state Marcelo Rebelo de Sousa was published in a note on the official website of the President of the Republic on the Internet.
“Given the relevance of the diploma received yesterday [quarta-feira] Government, which will have to enter into force quickly, the President of the Republic immediately promulgated a letter extending until December 31st the exceptional and temporary regime due to price increases affecting public contracts, and proceeds to revise the compensation factor applicable to cases of revision under the formula ” , says the note.
This Decree Law, approved a week ago by the Council of Ministers, extends until December 31 the exceptional and temporary price revision regime in public contracts, in force since May 2022, to combat inflation.
In the 22 June Council of Ministers communiqué, the government justifies this extension by referring to the fact that “continuous changes in some materials used in public works are still observed, with positive annual changes in price revisions”.
The government’s website notes that “Even so, as the material fluctuations are now more reduced, the compensation factor applicable to extraordinary price revisions in public works contracts, in cases of formula revisions, has been updated.” .
The executive branch uses this exclusive and temporary regime in the context of “a sharp increase in the cost of materials, labor or equipment” in order to “avoid stopping public investment.”
The same text adds that “however, already in March of this year, a regulation was published extending this regime also to the purchase of services such as the supply of energy and food, the operation of canteens or the transport of people and goods. “.
In addition to the extraordinary revision of prices, the decree-law allows for the extension of the terms without penalties and surcharges if it is impossible for the contractor to obtain the materials necessary for the performance of the work, for reasons beyond his control.
Author: Portuguese
Source: CM Jornal
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