The Court clarified in the public procurement case that a tender with a negative value shall not, in its own right, be considered as illegal
Attorney-at-law of Vilnius law firm SPES succeeded in convincing the court that the Central Procurement Organisation implemented legal and transparent public procurement procedures, which resulted in contract being awarded to the supplier offering a negative price for telecommunication services.
The court hearing the case held that tenders containing negative (minus) value shall not, in their own right, be regarded as abnormally low tenders. It is up to the contracting authority to decide whether, in light of the specific nature of the services being procured, the offered price looks as abnormally low and whether a justification thereof shall be required. The fact of a negative tender value itself does not prove that the supplier will be unable to perform a public procurement contract.
In the dispute at hand the court also clarified the meaning of a preliminary agreement in public procurement to the effect that a preliminary agreement in public procurement is not a type of procurement, but rather a separate procurement procedure, an organisational instrument, allowing to minimise the administrative burden of procuring entities. According to the court, a supplier which is a party to a preliminary agreement, at the point of execution thereof only becomes entitled to compete for the right and obligation to perform an order placed by the procuring entity under a preliminary agreement once a renewed competitive procedure among the suppliers is launched, but no exclusive rights to perform orders placed by a contracting authority are provided during the validity of a preliminary agreement.  

Reorganisation process successfully finalised

The reorganisation process of two clients of the law firm SPES, two private limited liability companies, has been successfully finalised. As a result of the reorganisation, one legal entity was merged with the other company, the latter taking over all rights and obligations of the legal entity under reorganisation. Lawyers of the law firm were involved in drafting the terms and conditions of the reorganisation, resolutions by managing bodies, as well as other documents necessary in the process of reorganisation, and provided legal advice throughout the reorganisation process. The reorganised company is successfully continuing its business.

  • APRIL 2021

    The court has ruled on the legality of the contracting authority’s decision to terminate the procurement procedure Attorney at Law of Law Firm SPES has managed to prove in court that the decision of the contracting authority to terminate the public procurement procedure was legitimate.Court of Appeal of Lithuania, which examined the case, has clarifi...

  • MARCH 2021

    The Court has clarified the conditions under which an agreement on default interest may be deemed contrary to public order (Article 1.81 of the Civil Code). Attorney at Law of law firm SPES has successfully defended the right of the client (creditor) to claim 0,2% default interest from the debtor as specified in the contract. In the case in question, ...

  • FEBRUARY 2021

    The Court has ruled on lawfulness of the contracting authority’s decision on termination of the procurement procedures. An attorney-at-law of Vilnius law firm SPES managed to prove in court that the Central Contracting Authority, in making the decision to terminate the public procurement procedures, did not violate the requirements of legal acts.In t...

  • JANUARY 2021

    The Supreme Administrative Court of Lithuania spoke on the allocation of the burden of proof in tax disputes between the parties.The Attorney at Law of Vilnius law firm SPES successfully represented the client in the Supreme Administrative Court of Lithuania during the tax dispute.The dispute in the case arose because the tax administrator, through property app...

  • DECEMBER 2020

    The court spoke on the importance and consequences of (not)contesting the conditions of public procurement. We defended the client’s interests in a public procurement case heard by the Lithuanian Court of Appeal. In its decision, the appellate court noted, among other things, that the procurement documents must be accurate, clear and unambiguous. The cont...