The Government has confirmed that everything is ready for the entry into effect of the new Federal Contracts System (FCS) from 1 January. With this system savings are expected on public procurement of at least a trillion roubles over three years. At the same time, the year 2014 will be a transitional year for the FCS.
Participants of the seminar held on 7 October at the Higher School of Economics on introduction of the contracts system believe that the law on the contracts system significantly complicates the duties of the government or municipal buyer. The rules of Law No. 44-FZ, which becomes effective from 1 January next year, imposes the responsibility on the buyer to officially observe all procurement procedures and also for the end result of such procurement.
Higher School of Economics discusses the conditions and legal consequences of terminating government contracts
On 7 June 2013 amendments came into effect in the federal law on government contracts (94-FZ), connected, among other things, with the procedure for unilateral termination of contracts on the initiative of the customer. Similar provisions relative to instances and consequences of the termination of a contract shall be contained in the federal law on the federal contracts system (44-FZ), which will come into effect from 1 January 2014. “The Law stipulates that the unilateral withdrawal from performance of a contract is implemented in accordance with civil legislation. That said, the Civil Code provides for the possibility of such a withdrawal by the customer not only in instances when the other party is in gross breach of the contractual conditions, but generally as well, without grounds,” declared Dmitry ILYUSHIN, expert from IPAMM NRU HSE at a meeting of the working group of the Expert Council under the Russian Government for public expenditure and procurement, held at NRU HSE on 14 August.