• The New Hungarian Public Procurement Act
  • April 19, 2013
  • Law Firm: BALaZS HOLLo Law Firm - Budapest Office
  • The creation of the new Public Procurement Act has become necessary as the legal practice being based on the interpretation of the previous law, Act CXXIX of 2003 was laboured and difficult to follow. Conflicts concerning decision on non-conformity with formal requirements often arose between the participants of public procurement procedures leading to the rejection of many tenders and to the protraction of public procurement procedures, thus endangering sometimes even the realisation of the planned investments. The aim of the new Public Procurement Act, as approved by the Hungarian Parliament on 11 July 2011, is to simplify the legal practice in force at the present. At a first glance, it differs from the previous law mainly by its volume, as it contains only 183 sections instead of the previous 407. The concept of the creators of the new law was to prepare an act which is shorter and more comprehensible than the previous rules; consequently, the details of the regulation are not contained in the Act itself, but in separate decrees on the execution of the Act. As an example, the dispositions on the registers and records kept by the Office for Public Procurement are regulated in a separate decree as well as technical descriptions, further, particular conditions of the procedure and of the contract concluded for construction investments, social and environmental aspects, etc. This legislative technique aims at that the conformity of the rules on public procurement with the pretensions of the economic environment can be reached without further amendments to the Act.