Bidding Law slows down PAC construction site – 10/19/2023 – Panel SA

The New PAC (Growth Acceleration Program) will suffer from obstacles imposed by the new Bidding Law. Lawyers linked to infrastructure say that the text that will come into force in January already needs to be modified if the government wants to be successful with its works plan.

One of the requirements is guarantee insurance for major works. There are currently no national construction companies with sufficient balance sheets to qualify for projects of this size.

For lawyer Fernando Vernalha, another problem will be bidding for the lowest price. This modality encourages the practice of excessive discounts, making the execution of the project unfeasible.

“The problems generated by this rule of the bidding law will hinder the development of the PAC agenda on time, within the budget expected and desired by the government”, says Vernalha.

The lawyer considers that, in this modality, the public authorities should have the power to choose the best way to dispute.

Another barrier is the so-called budget flow. Therefore, to carry out each stage of work, payments are made into a linked account and are only released after verification of compliance with the contract.

“One of the causes that lead to the work being stopped is the interruption of the financial budget flow”, says Vernalha. “It is necessary to reestablish the obligation to have accounts that reserve the necessary resources to pay for the execution of projects.”

According to the original calendar, the new law would come into force in April this year, however the Lula government understood that the regulatory deadline was tight and issued a Provisional Measure extending its validity to December 30th.

At this moment, more than 70% of the text already has regulatory acts published.

With Diego Felix

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