Rules for contracting in water, energy, transport and postal sectors

Automatic summary, not yet reviewed

1. The law regulates how public and private entities operating in the water, energy, transport and postal services sectors award their contracts, when the contract reaches certain minimum amounts.
2. Contracts entered into by public administrations are excluded from this law and are governed by the Public Sector Contracts Law, although they may use the conciliation procedure in this law.
3. The law only applies to contracts whose estimated value, excluding VAT, is equal to or greater than €422,000 for supplies and services, and €5,278,000 for works.
4. Activities that are already open to real competition, in markets with unrestricted access, are excluded from the scope of the law.
5. Every tender must be published in the Official Journal of the European Union and in the Official State Gazette, and awarded contracts must also be announced within two months.
6. Contracting entities may use new purchasing techniques: central purchasing bodies, framework agreements, dynamic purchasing systems and electronic auctions, always without distorting competition.
7. Anyone who believes the law has been breached can file a complaint with the competent administration, after notifying the contracting entity, and request the annulment of illegal decisions or compensation.
8. The law enters into force six months after its publication, except for postal services, where it applies from January 1, 2009.

Who it affects

• Companies that want to contract with water, energy, transport or postal entities: They must comply with the thresholds, deadlines and procedures of this law to submit bids.
• Public and private contracting entities in these sectors: They must publish their tenders, follow the open, restricted or negotiated procedures, and allow complaints.
• Public administrations: They are outside this law and are governed by the Public Sector Contracts Law, although they use its thresholds and exclusions as a reference.
• Subcontractors and suppliers: They have the right to be paid within a maximum of sixty days in contracts with public law bodies, with late payment interest if payment is delayed.

Words worth knowing

Entidad contratante (contracting entity)

A public or private body or company operating in these sectors that can award contracts covered by this law.

Umbral (threshold)

The minimum contract value above which the rules of this law apply.

Procedimiento abierto, restringido y negociado (open, restricted and negotiated procedures)

Ways of choosing the contractor: in the open procedure anyone can submit a bid; in the restricted one only invited candidates can; in the negotiated one the entity negotiates directly with one or more.

Acuerdo marco (framework agreement)

An agreement between a contracting entity and one or more operators setting the conditions for contracts to be awarded over a period.

Subasta electrónica (electronic auction)

An electronic process in which bidders submit new prices or values, usually lower, after a first evaluation of the bids.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries