Bill 501.

Summary.

The bill establishes a maximum period for the State to pay for contracts with micro, small and medium-sized enterprises under the public procurement framework. Its stated purpose links that limit to contract performance, legal certainty for suppliers and the sustainability of the productive sector. Article 1 provides that the measure would apply without affecting the principles of equality, open competition, transparency and legality governing public procurement.

Article 2 amends Article 22 of Law 22 of June 27, 2006, concerning contractors’ rights. The proposed wording recognizes the right to receive payment on the terms set out in the tender documents and the contract, subject to the limits established by that law. It also provides for the right to receive late-payment interest from the relevant entity, in accordance with paragraph 10 of the preceding article. It retains the right to have the entities accept the contracted goods, services or works and issue an acceptance document within the period established in Article 113.

The same amendment allows contractors to request extensions within the performance period when delays arise for reasons beyond their control. If a delay is attributable to the contracting entity, the contractor would be entitled to an extension without the penalty stipulated in the contract. These provisions expressly include payment, acceptance of the contracted goods, services or works, and extensions among the rights of those contracting with public entities.

Article 3 amends Article 100 of Law 22 of 2006. It requires contracting entities to pay within the period set out in the tender documents and the contract. If payment is made after the agreed date for reasons beyond the contractor’s control, the contractor would be entitled to late-payment interest under Article 1072-A of the Fiscal Code. The provision also applies that rule when a contractor cannot complete a work within the agreed period because the entity fails to fulfill responsibilities stipulated in the contract.

For contracts with micro, small and medium-sized enterprises, as defined under Law 33 of 2000 and its amendments, payment would be subject to a maximum period of 60 calendar days from documented fulfillment of the contractual obligations, as applicable. The tender documents or contract could set shorter periods. Article 4 identifies Articles 22 and 100 of Law 22 of June 27, 2006, as the provisions amended. Article 5 provides that the law would take effect upon its promulgation in the Official Gazette. The bill concerns public contracting entities, contractors, suppliers and the micro, small and medium-sized enterprise sector.