1 Legislative framework
1.1 What legislative and regulatory provisions govern public procurement in your jurisdiction?
As a member of the European Union, Greece has transposed the following EU public procurement directives through Law 4412/2016:
- the Public Sector Directive (2014/24);
- the Utilities Directive (2014/25);
- the Remedies Directive (1989/665); and
- the Utilities Remedies Directive (1992/13).
However, the scope of Law 4412/2016 is wider, as it also encompasses contracts that fall outside the scope of the aforementioned directives.
The Concessions Directive (2014/23) was transposed through Law 4413/2016 on Public Concession Contracts.
In addition, the following laws apply to special sectors and award procedures:
- the Law on Public Procurement in the Fields of Defence and Security (3978/2011); and
- the Public-Private Partnerships (PPP) Law (3389/2005).
The regulatory framework is further supplemented by other laws, presidential decrees and ministerial decisions which regulate special aspects of procurement regulation. Also, several guidelines and soft law documents have been issued by the Hellenic Single Public Procurement Authority (HSPPA), which is the Greek independent authority on public procurement.
1.2 Do any special regimes apply in specific sectors (eg, utilities, defence)?
Special regimes apply:
- in the utilities sector, where a 'contracting entity' seeks to procure services, works or supplies intended for the pursuit of a 'utility activity', as defined in the Utilities Directive (2014/25) and Law 4412/2016;
- in the defence and security sector;
- to public concession contracts; and
- to PPPs.
Furthermore, special procurement regulations apply in relation to specific entities (eg, GrowthFund, the National Investment Fund of Greece, and its affiliates).
1.3 Which bilateral or multilateral instruments or treaties with effect in your jurisdiction (if any) have relevance for public procurement?
As a member of the European Union, Greece is bound by the terms of the World Trade Organization Agreement on Government Procurement.
Additionally, Greece has entered into bilateral agreements in relation, among other things, to issues that can affect procurement, such as the agreement with Cyprus in relation to the exemption from legalisation of public documents executed in the Cypriot territory (apostille).
2 Scope of application
2.1 What kinds of entities fall within the scope of the public procurement rules in your jurisdiction? Do any exemptions apply?
The public procurement rules apply to 'contracting authorities' and 'contracting entities', as defined in the relevant EU directives. Similar rules apply in the defence and security sector.
'Contracting authorities' are defined as:
- state, regional or local authorities;
- bodies governed by public law; and
- associations formed by one or more such authorities or one or more such bodies governed by public law.
'Contracting entities' are primarily contracting authorities or public undertakings which are active in one of the 'utility sectors' as set out in Directive 2014/25. An additional category of contracting entity encompasses entities which, without being contracting authorities or public undertakings:
- are active in the utility sectors or any combination thereof; and
- operate on the basis of special or exclusive rights granted by a competent authority of an EU member state.
2.2 What kinds of contracts fall within the scope of the public procurement rules in your jurisdiction? Do any exemptions apply?
In principle, all contracts for the supply of goods, the execution of works and the provision of services (including mixed contracts) between an economic operator and a contracting authority or contracting entity fall within the scope of the public procurement rules, although different procurement rules apply depending on each case.
Several exemptions apply as per the applicable EU directives, including the following:
- contracts awarded in accordance with international law or inter-state international agreements;
- in-house contracts (ie, contracts between one or more contracting authorities); and
- contracts regarding the sale, acquisition or lease of immovable property by a contracting authority.
Such contracts fall outside the scope of the EU public procurement directives and likewise of Law 4412/2016.
2.3 What financial thresholds must be met for specific contracts to fall within the scope of the public procurement rules in your jurisdiction? Do any exemptions apply?
National public procurement rules apply to all public contracts tendered by contracting authorities/entities, irrespective of whether their estimated value is below the financial thresholds specified in the EU directives, as applicable. However, depending on the value of each contract (including whether such value is below or above the EU thresholds), different award procedures and rules may apply, including direct award.
More specifically, direct award is provided for:
- works contracts and certain contracts for the provision of services (eg, social and other special services, including certain legal services) whose estimated value is below €60,000; and
- other types of contracts where the estimated value is below €30,000.
By way of derogation, contracts relating to information and communication technology projects aimed at ensuring the interoperability of digital services or the modernisation of digital tools in the public sector are subject to direct award where their estimated value is below €60,000.
The financial thresholds as set out in the EU directives vary depending on the type of contract and the procuring body. The thresholds are reviewed every two years.
The financial thresholds for the period from 1 January 2024 to 31 December 2025 are as follows:
Type of contract | Threshold amount |
---|---|
Works | €5,538,000 |
Supply of goods and services | €143,000 (for central government bodies) |
€221,000 (for any other government authority) | |
€443,000 (for contracts regarding utility activities) | |
Public service contracts for social and other services | €750,000 |
€1 million (for contracts regarding utility activities) | |
Concessions | €5,225,000 |
Contracts with a value net of value-added tax estimated to be equal or greater than the above thresholds fall within the scope of the EU directives.
2.4 Do any rules apply in regard to contracts which fall below the relevant financial thresholds?
As stated in question 2.3, purely national public procurement rules apply to contracts that fall below the relevant EU financial thresholds.
However, under the case law of the Court of Justice of the European Union (CJEU) and the relevant European Commission soft law, member states must abide by the general principles of equal treatment, transparency and competition even in the case of contracts that fall under the EU financial thresholds, provided that certain conditions are met.
2.5 Do any special rules apply to certain types of agreements (eg, concession contracts, framework agreements)?
- Concession contracts are regulated under Law 4413/2016;
- Framework agreements are regulated under Law 4412/2016; and
- Public-private partnerships are regulated under Law 4412/2016 and Law 3389/2005.
2.6 Do any special rules apply where the supplier is a foreign entity?
Economic operators established or operating in EU member states have the right to participate in national procurement procedures under the same legal rules as economic operators established in Greece. Economic operators established in a third country that has signed and ratified the World Trade Organization on Government Public Procurement are also permitted to participate.
However, economic operators from third countries which have not signed an international agreement on public procurement with the European Union do not fall within the scope ratione personae of the EU directives and do not enjoy the rights provided for in those directives. In this regard, the Grand Chamber of the CJEU, in a recent judgment (C-652/22), held that national authorities cannot interpret the national provisions transposing the EU public procurement directives as also applying to economic operators of third countries which have not concluded such an agreement with the European Union which have been admitted, by a contracting entity, to participate in a procedure for the award of a public contract in the member state concerned. Additionally, in a fairly recent judgement (C-266/22) the CJEU held that member states cannot impose a general ban on access for economic operators of third countries on the basis of legislative acts adopted by the member state without having been empowered to do so by the European Union.
Notwithstanding the above, Regulation 2022/2560 on foreign subsidies distorting the internal market applies when foreign entities participate in public procurement procedures, whereas specific rules also apply in relation to economic operators that are subject to EU sanctions (eg, Regulation 833/2014).
2.7 Do any anti-avoidance rules apply in your jurisdiction?
Law 4412/2016 sets out rules prohibiting contracting authorities from valuing or subdividing a contract with the intention of excluding it from the scope of the relevant directive unless justified by objective reasons related to the subject matter of the contract.
3 Preliminary stages
3.1 What initial engagement with the market will a procuring entity typically undertake in advance of launching a tender procedure? What rules and requirements apply in this regard?
Contracting authorities may conduct market soundings ('preliminary consultations') prior to launching a procurement procedure with a view to informing economic operators of their procurement plans and relevant technical specifications or requirements.
A special website has been established ( https://cerpp.eprocurement.gov.gr/deliberation/#/deliberation-search/) where such consultations are published and interested economic operators and stakeholders can provide comments.
Law 4412/2016 sets out the rules that apply to preliminary consultations, including the minimum duration of each (at least 15 days). The contracting authority will process the comments, but it is not obliged to incorporate them in the tender documents.
3.2 How are invitations to participate in a tender made public in your jurisdiction?
Contract notices where the estimated value of the contract exceeds €30,000 are published on the National System of Electronic Public Procurement (ESIDIS) and on the Central Electronic Public Procurement Registry. Contracting authorities are also obliged to publish these notices on their websites.
Contract notices where the estimated value of the contract is equal to or greater than the financial thresholds set by the directives are also published in the Official Journal of the European Union.
3.3 What criteria determine eligibility to participate in a tender? Do any exemptions apply?
Participation in a public procurement procedure is dependent on fulfilment of the exclusion and selection criteria.
As far as the grounds for exclusion are concerned, all procurement procedures provide for mandatory and discretionary grounds for exclusion, pursuant to the EU directives.
As far as the selection criteria are concerned, contracting authorities may establish the following selection criteria:
- suitability to pursue a professional activity;
- economic and financial standing; and
- technical and professional ability.
Candidates must meet the selection criteria set out in the procurement documents in order to successfully participate in the procurement procedure.
Such criteria:
- must be relevant and proportionate to the value and general characteristics of the subject matter of the contract; and
- must not artificially restrict or distort competition.
3.4 Can the number of potential participants in a tender be restricted in your jurisdiction?
Contracting authorities may restrict the number of otherwise qualified candidates to be invited to participate in a tender. Provided that it has included clear provisions and rules to this end in the relevant tender documents, a contracting authority may exercise this right in the case of:
- restricted procedures;
- competitive procedures with negotiation;
- competitive dialogue procedures; and
- innovation partnerships.
The minimum number of candidates is:
- five in the restricted procedure; and
- three in:
-
- the competitive procedure with negotiation;
- the competitive dialogue procedure; and
- the innovation partnership.
In any event, the contracting authority must ensure that the number of candidates is sufficient to ensure genuine competition.
3.5 Do any special incentives apply to promote the participation of small and medium-sized enterprises in tenders in your jurisdiction?
In general, several provisions of the relevant EU directives aim to promote the participation of small and medium-sized enterprises. Reliance on the capacity of other entities and subcontracting facilitates cooperation between economic operators and provides smaller enterprises with an opportunity to participate in the procurement procedure.
To this end, contracting authorities are also encouraged to divide large contracts into lots.
3.6 What rules and requirements apply in regard to the formulation of technical specifications used as part of a tender procedure?
As a general rule, contracting authorities draft technical specifications at their discretion. However, technical specifications should be drafted in such a way as to:
- avoid artificially restricting or distorting competition; and
- afford equal access to economic operators to the procurement procedure.
Contracting authorities set forth technical specifications that refer to EU standards or, in the absence thereof, to national standards.
In some sectors (ie, health supplies), centralised contracting authorities have set out specific technical specifications. Contracting authorities in the relevant sectors must adopt the standardised technical specifications. Exceptions are provided for when necessary, depending on the subject matter of the contract.
Reference to a specific make or source is permitted where this is justified by the subject matter of the contract, as long as each reference is accompanied by the words 'or equivalent'.
3.7 Are prospective tenderers which have assisted in the preparation of the tender restricted from participating in the tender procedure? If they are, what requirements are there on procuring entities to manage this?
Where a candidate or an undertaking related to a candidate has advised the contracting authority or has otherwise been involved in the preparation of the procurement procedure, the contracting authority must take appropriate measures to ensure that competition is not distorted by the participation of that candidate. Otherwise, a conflict of interest may arise.
Such measures include, indicatively:
- communicating to the other candidates relevant information exchanged in the context of the prior involvement of the candidate in the preparation of the procurement procedure; and
- setting adequate timeframes for the receipt of tenders.
Where there are no other means to ensure compliance with the principle of equal treatment, the candidate concerned will be excluded from the procedure.
4 Governing principles
4.1 What key principles govern public procurement in your jurisdiction?
The key principles of public procurement rules as set out in Law 4412/2016 are:
- transparency;
- equal treatment and non-discrimination;
- proportionality; and
- effective and genuine competition.
4.2 What requirements and restrictions apply with regard to the impartiality and independence of the procuring entity, including conflicts of interest?
Contracting authorities must act in a transparent and impartial manner throughout the procurement procedure. To this end, certain rules apply in relation to measures that the contracting authority must take to prevent, identify and remedy a conflict of interest.
The concept of conflict of interest covers any situation where any person, acting on behalf of the contracting authority that is involved in the conduct of the procurement procedure or may influence the outcome of the procedure, has, directly or indirectly, a financial, economic or other personal interest which might be perceived to compromise its impartiality and independence in the context of the procurement procedure.
Any person that might be involved in a conflict of interest as defined above must notify the contracting authority, which will decide whether a conflict of interest exists.
Where a conflict of interest cannot be effectively remedied by other less intrusive measures, the economic operator concerned will be excluded from participation in the procurement procedure.
5 Procedures
5.1 What different types of tender procedures are available in your jurisdiction? What are the advantages and disadvantages of each?
The following types of tender procedures are set out in Law 4412/2016:
- Open procedure: The most common type of tender procedure, in which any interested party may submit a tender.
- Restricted procedure: A two-stage procedure in which contracting authorities may limit the number of candidates who are invited to submit a tender.
- Competitive procedure with negotiation: Any economic operator may submit a request to participate in response to a call for competition.
- Competitive dialogue: This procedure applies to complex contracts. Any economic operator may request to participate in the process. A dialogue between the candidate and the contracting authority is carried out in which certain aspects of the contract are specified. After the technical specifications of the contract have been finalised, economic operators are invited to submit bids.
- A competitive procedure with negotiation and competitive dialogue are possible in the following situations:
-
- The needs of the contracting authority cannot be met through readily available solutions;
- Prior negotiations are necessary because of specific characteristics of the contract; or
- Technical specifications cannot be specified by the contracting authority.
- Innovation partnership: This procedure is aimed at the development of an innovative product, work or service.
Each type of tender procedure has its own advantages and disadvantages.
The open procedure, while encouraging participation and the most competitive tenders, can lead to a large number of tender offers and as a rule requires a lengthy period for their evaluation. Restricted procedures require, almost by definition, longer tender periods due to the two-stage tender structure.
Negotiated and competitive dialogue procedures, on the other hand, facilitate the tenderer's involvement in the design of the contract. However, they require more careful planning on the contracting authority's part to succeed and might similarly require an extensive period of time for negotiations and tender evaluation to be completed.
5.2 What rules and requirements apply with regard to the direct award of contracts, without a tender procedure?
Contracts with a value of less than €30,000 (goods and services) or €60,000 (works and certain types of services) may be awarded by direct award procedures. Contracting authorities are obliged to make the contract notice as well as the concluded agreement publicly available through the Central Electronic Public Procurement Registry when the contract has a value over €2,500.
Notwithstanding the above, a negotiated procedure without publication of a tender notice may also be utilised in the following circumstances:
- where no tenderers or no suitable tenderers have previously submitted a bid to an open or a restricted procedure;
- where the works, supplies or services can be provided only by a particular economic operator for technical reasons; or
- for reasons of extreme urgency brought about by events unforeseeable by the contracting authority.
In the case of negotiation procedure, the prior consent of the Hellenic Single Public Procurement Authority is required.
5.3 What rules and requirements apply to the choice of tender procedure? What other factors play a role in this regard?
The open procedure is the standard type of procurement procedure. Other types can be used if the subject matter, the complexity and the technical characteristics of the contract in general justify choosing one of the other types of procurement procedures.
5.4 How do the different types of tender procedures typically unfold? What are the typical timeframes for each?
Open procedure: Any interested economic operator may submit a tender in response to a contract notice. The minimum time limit for receipt of tenders is 35 days from the date on which the contract notice was sent. The time limit may be reduced to 15 days in case of an urgent situation.
Upon completion of the evaluation, there is a standstill period of 10 days for the submission of appeals.
As a rule, a typical open procedure – review and judicial procedures notwithstanding – may last on average from two months to one year, depending on:
- the award criteria; and
- the technical complexity of the project.
Restricted procedure: In this procedure, a two-stage process is carried out for the award of a contract. The minimum time limit for receipt of requests to participate is 30 days from the date on which the contract notice was sent. At the second stage, economic operators that were invited to submit tenders have a time limit of 30 days to do so. This time limit may be shortened by five days when the tenders are submitted by electronic means.
Where a state of urgency is duly substantiated by the contracting authority:
- the time limit for the receipt of requests to participate may be 15 days from the date of the contract notice; and
- the time limit for the receipt of tenders may be 10 days from the date of the invitation to tender.
Upon completion of the assessment, there is a 10-day standstill period for the submission of appeals.
As a rule, a typical restricted procedure – review and judicial procedures notwithstanding – may last on average from six to 18 months, depending on the technical complexity of the project.
Competitive procedure with negotiation, competitive dialogue and innovation partnership: The same timeframes apply in case of a competitive procedure with negotiation, competitive dialogue or innovation partnership. As a rule, the duration of these procedures is expected to similar to the duration of the restricted procedure.
Evaluation process: The legal framework does not specify a timeframe for completion of the evaluation process. Law 4412/2016 provides for deadlines within which the relevant evaluation committees should complete their evaluation, under penalty of losing their compensation. However, several exceptions apply in this regard.
Tender process: Typically, the tender procedure will unfold as follows:
- Publication of tender notice.
- Time period for the submission of tenders.
- Tender submission.
- Tender evaluation:
-
- Evaluation of exclusion grounds and selection criteria;
- Evaluation of technical offer; and
- Evaluation of financial offer.
- Award of contract.
- Submission of contractual documentation and evaluation.
- Approval by the Court of Auditors (where applicable).
- Signing of the contract.
5.5 What rules and requirements apply with regard to contract award criteria?
The award of public contracts is based on the selection of the most economically advantageous tender, assessed based on either the price/cost or the price-quality ratio.
The award criteria:
- should ensure effective competition;
- should not have the effect of artificially restricting participation; and
- must be related to the subject matter, complexity, timeframe and value of the contract.
Where a price-quality ratio is applied, the contracting authority must include the weighting given to each criterion in the procurement documents. The weightings may be expressed by providing a range with an appropriate maximum spread.
5.6 On what grounds will tenderers be excluded from a tender procedure?
The EU directives set out both mandatory and discretionary exclusion grounds.
The mandatory exclusion grounds include:
- criminal offences (eg, participation in a criminal organisation, corruption, fraud, terrorist offences, money laundering, child labour and trafficking); and
- breaches of obligations relating to the payment of tax and social security contributions.
Discretionary exclusion grounds include:
- bankruptcy, insolvency and similar situations;
- grave professional misconduct;
- conflict of interest;
- deficiencies in the performance of a prior public contract; and
- serious misrepresentation.
Where the economic operator concerned can provide sufficient evidence to the effect that measures have been taken to demonstrate its reliability despite the existence of one of the (discretionary) grounds of exclusion, the economic operator concerned shall not be excluded from the procurement procedure. The contracting authority will take into account the gravity of the misconduct when assessing the sufficiency of the measures.
In addition to the exclusion grounds set out in the EU directives, special exclusion grounds are provided for in national legislation in relation to:
- media companies or any natural or legal person that owns shares or holds voting rights in a media company; and
- offshore companies or economic operators where more than 1% of their shares is owned by an offshore company.
5.7 Are tenderers permitted to negotiate with the procuring entity as part of the tender procedure? If so, what rules and requirements apply in this regard?
Tenderers are not allowed to negotiate with the contracting authority, except in tender procedures that specifically include negotiation as part of the tender process (eg, competitive dialogue, competitive procedure with negotiation or innovation partnership). Where negotiation is permitted, the contracting authority must comply with the principles of:
- equal treatment;
- transparency; and
- confidentiality.
5.8 What rules and requirements apply to the evaluation of tenders? What factors other than price play a role in this regard?
Tenders are evaluated based on the award criteria and weightings outlined in the tender documents. During the evaluation process, the contracting authority must comply with the principles of:
- equal treatment;
- transparency; and
- competition.
Furthermore, under national law, the principle of formality also applies, meaning that the contracting authority must conduct the award process fully, abiding by the provisions of the contracting documents.
Save for price, the evaluation may also take into account factors such as:
- environmental and social aspects;
- quality;
- aesthetic and functional characteristics;
- accessibility;
- organisation;
- the qualifications and experience of staff;
- technical assistance; and
- delivery conditions.
5.9 Do any special rules or requirements apply with regard to abnormally low bids?
Where a bid appears abnormally low, the contracting authority must require the economic operator to explain the price or costs of the submitted tender. More specifically, in works and services contracts, a bid is deemed abnormally low when it is at least 10% lower than the average of the discounts of the submitted tenders.
The explanations may relate to:
- the economics of the manufacturing process, the services provided or the construction method;
- technical solutions or exceptionally favourable conditions available to the tenderer;
- the originality of the work, supplies or services proposed by the tenderer;
- compliance with:
-
- environmental, social security and labour obligations; and
- subcontracting provisions; and
- the possibility that the tenderer will obtain state aid.
The explanations of the economic operator must provide sufficient evidence regarding:
- compliance with the relevant legal provisions; and
- the financial viability of the proposed tender.
The contracting authority may assess the explanations supplied and will reject the tender only if the evidence supplied does not satisfactorily account for the low bid.
5.10 How is the winning tenderer selected and what is the process for awarding the contract?
Following the evaluation of the tenders, the contract will be awarded to the most economically advantageous tender, depending on the exact award criterion.
Where the award procedure is conducted through the National System of Electronic Public Procurement (ESIDIS), the successful tenderer will be electronically notified to submit the necessary documentation set out in the tender documents within 10 days of receipt of the relevant notice.
If the submitted documentation does not meet the requirements set out in the tender documents, the contracting authority will require clarification. If the requirements still are not met, the tender will be rejected and the contract will be awarded to the second-lowest bidder.
At the conclusion of the above procedure:
- the contract will be awarded to the winning tenderer after a 10-day standstill period, provided that the award decision has not been challenged; and
- the contracting authority will send notice to the winning tenderer for the execution of the contractual documents.
Before the signing of the contract, if its value exceeds €1.7 million (€5 million for EU-financed projects), an audit by the Court of Auditors must be conducted.
5.11 What is the process for notifying unsuccessful tenderers of the outcome of the tender procedure?
Where the award procedure is conducted through ESIDIS, unsuccessful tenderers are electronically notified of the outcome of the evaluation process. They have the right to challenge the relevant decision within 10 days of receipt of the notice.
5.12 Is joint procurement possible? If so, in what circumstances is it typically used and what rules and requirements apply in this regard?
The EU directives and Law 4412/2016 provide that joint procurement is possible when two or more contracting authorities cooperate to carry out a procurement procedure. Provided that certain conditions are satisfied, such contracts fall outside the scope of the EU directives and Law 4412/2016. Such contracts are often utilised when the contracting authorities are seeking to achieve a common goal – for example, for innovative contracts.
Joint procurement in the defence sector is provided for in EU Regulation 2023/2418 on the reinforcement of the European defence industry. However, this instrument was established for a specific time period (ie, 27 October 2023 to 31 December 2025) and for this specific sector.
5.13 What rules and requirements apply in regard to a procuring entity's record keeping during a tender procedure?
Contracting authorities must document the progress of all stages of the procurement procedure. If the procedure is carried out through electronic means, the record is kept in a digital format in ESIDIS.
The file includes:
- sufficient documentation to justify the decisions of the contracting authority throughout the procedure; and
- all communications with economic operators, including:
-
- the description of the selection procedure; and
- award of the contract.
Contracting authorities must retain this file for at least five years from final acceptance of the contract deliverables.
6 Modifications
6.1 What rules and requirements apply to modifications during the tender procedure – for example, to the contract specifications or conditions, to the timetable or to the members of a bidding consortium?
Different conditions apply depending on the stage of the award process at which the need for modification arises:
- Prior to the submission of tenders: As a rule, a contracting authority may modify the procurement documents provided that it publishes such modifications in national forums and the Official Journal of the European Union. In such cases, the time limit for the submission of tenders will be extended and contracting authorities must comply with the principles of transparency and equal treatment. However, such modifications should not be so substantial that:
-
- the admission of candidates other than those initially selected would have been allowed; or
- additional participants in the procurement procedure would have been attracted (eg, where such changes render the contract materially different in character from that initially set out in the procurement documents).
- In such case, the award procedure will be suspended.
- During the award process: No modifications are allowed. In case of a change in the contract specifications or conditions, the contracting authority is entitled to suspend the award procedure.
The time limit for the submission of tenders may be extended by the contracting authority at any time during the period for the submission of tenders, provided that sufficient publicity is ensured.
6.2 Is the procuring entity permitted to negotiate with the successful tenderer after the contract has been awarded? If so, what rules and requirements apply in this regard?
No negotiation is permitted between the contracting authority and the successful tenderer after the contract has been awarded. The tender submitted by the winning tenderer and the provisions of the procurement documents are binding for both the contracting authority and the successful tenderer.
6.3 Are any contract modifications permitted post award? If so, what rules and requirements apply in this regard?
Contract modifications are permitted in any of the following cases:
- The modification has been included in the initial procurement documents in precise and unequivocal review clauses.
- Additional works, services or supplies have become necessary and were not initially included in the procurement documents, where a change of contractor:
-
- cannot be made for economic or technical reasons; and
- would cause significant inconvenience or duplication of cost for the contracting authority.
- In this case, any increase in price must not exceed 50% of the initial contract value.
- The need for modification has been brought about by circumstances which a diligent contracting authority could not foresee, the modification does not alter the overall nature of the contract and any increase in price is not higher than 50% of the original contract.
- The modification is not substantial. A modification is considered to be 'substantial' where:
-
- it introduces conditions which, had they been part of the initial procurement procedure, would have altered the make-up of the participants in the procurement procedure or the assessment of the submitted tenders;
- it changes the economic balance of the contract in a manner which was not provided for in the initial contract;
- it extends the scope of the contract considerably; or
- a new contractor replaces the one to which the contracting authority had initially awarded the contract.
- The value of the modification is below both:
-
- the financial thresholds set out in the EU directives; and
- 10% of the initial contract value
Before the execution of any modification contract, the modification will be reviewed by the Court of Auditors, if the Court of Auditors also reviewed the original contract.
6.4 Can the contract be transferred to a third party post award? If so, what rules and requirements apply in this regard?
Law 4412/2016 sets out the situations in which and the conditions under which a contract can be transferred to a third party. Such transfers typically constitute a 'modification' within the meaning of the EU directives and Court of Justice of the European Union case law, and thus the relevant conditions must be met to ensure their legality.
A transfer is allowed in the following cases (indicatively):
- An unequivocal review clause or option has been included in the initial procurement documents;
- A new contractor replaces the initial contractor as a consequence of complete or partial succession into the position of the initial contractor following the corporate restructuring of another economic operator that fulfils the criteria for qualitative selection initially established, provided that this does not entail other substantial modifications to the contract; or
- The contracting authority itself assumes the main contractor's obligations towards its subcontractors.
7 Review
7.1 Which national bodies are responsible for enforcing procurement laws and regulations?
The national bodies responsible for enforcing public procurement rules are:
- the Hellenic Single Public Procurement Authority (HSPPA); and
- the administrative courts.
More specifically, the enforcement of procurement laws and regulations in Greece is two-tiered:
- First level: Any tenderer or interested party may file an application for review before the HSPPA, which will examine such application and issue a decision within 20 days of examination of the application.
- Second level: Any decision issued by the HSPPA is subject to an action for annulment before the competent administrative court – that is, the Council of State or the Court of Appeal, depending on the value of the relevant contract.
The Court of Auditors is also responsible for auditing contracts valued over €1.7 million (€5 million in the case of EU-financed contracts).
7.2 On what grounds can a decision of a procuring entity be reviewed? Who has standing to submit an application for review?
Economic operators can submit an application for review before the HSPPA challenging all (final) decisions of the contracting authority, from publication of the tender documents to the award decision.
Economic operators may request the annulment of a decision of the contracting authority on numerous grounds, depending on the factual and legal background of each case. Examples include (indicatively) where:
- a general principle has been violated (eg, equal treatment, transparency, competition);
- a procedural requirement of the tender procedure was not adhered to; or
- the technical specifications are discriminatory or restrictive.
Additionally, economic operators may request the inadmissibility of the application for review, claiming violation of procedural requirements, including:
- late submission of the application; or
- lack of legal interest.
As far as legal standing is concerned, all economic operators that have suffered damage or are at risk of suffering damage as a result of an act or omission of the contracting authority have the right to bring an application for review before the HSPPA, provided that they can demonstrate such damage.
7.3 What is the limitation period for submitting an application for review?
As a general rule, applications must be submitted within 10 calendar days of the date on which the economic operator concerned was informed of the challengeable act of the contracting authority.
An application filed for the declaration of the ineffectiveness of a contract must be filed within 30 days of the date following that on which the interested party was informed of the signing of the contract. In any case, the application must be filed no later than six months after the date of signing of the contact.
Actions for annulment against a decision issued by the HSPPA before the competent administrative courts must be submitted within 10 calendar days of the date on which the HSPPA notified its decision to the applicant.
7.4 Does the submission of an application for review have a suspensive effect on the tender procedure?
The 10-day standstill period and the submission of an application for review bring about an automatic suspensive effect to the signing of the contract.
However, the suspension of the award procedure is generally not automatic. If an application for review has been submitted before the HSPPA, the applicant must specifically request the suspension of the procurement procedure. The latter will examine the facts of the case and decide accordingly, after hearing the contracting authority. As a rule, applications for review against the tender documents lead to the suspension of the award process.
The same applies in case of an action for annulment before the administrative courts; in such case, contracting authorities will suspend all procurement proceedings for 15 days from submission of the action for annulment.
7.5 What is the typical timeframe for review proceedings?
A typical review procedure before the HSPPA unfolds as follows:
- An application for review is submitted to the HSPPA.
- The contracting authority may submit to the HSPPA its observations and the relevant case file within 15 days of submission of the application for review.
- Third parties with a legitimate interest in the procedure may submit an intervention within 10 days of the date of notification of the application.
- The application is examined. The date for examination of the application may not be more than 40 days after the date of its submission.
- The HSPPA must issue a decision on the application for review within 20 days of the date of the examination of the application.
Following the issuance of a decision by the HSPPA, any interested party may challenge it before the competent administrative court by submitting an action for annulment within 10 days of notification of the HSPPA's decision.
If the HSPPA fails to issue a decision within the abovementioned deadline of 20 days, the economic operator concerned may submit to the competent administrative court an action for annulment against the implied rejection of its application for review by the HSPPA.
Where the award procedure is conducted through the National System of Electronic Public Procurement, the submission of the application for review, the observations by the contracting authority and the interventions, and notification of the relevant decision of the HSPPA, are executed via this platform.
7.6 What costs are typically incurred in review proceedings?
Any challenge to the procurement process through the submission of an application for review entails the payment of a fee equal to 0.5% of the estimated value of the contract (excluding value-added tax (VAT)), subject to a minimum payment of €600 and a maximum payment of €15,000.
The submission of an action for annulment against a decision made by the HSPPA before the administrative courts entails the payment of a fee equal to 0.1% of the estimated value of the contract, including VAT. This fee is subject to a minimum payment of €500 and a maximum payment of €5,000. Half the amount of the fee must be paid prior to submission of the action for annulment, while the remaining amount is paid in case of dismissal of the action.
Both fees may be refunded if the application for review or the action for annulment, depending on the case, is successful.
7.7 What enforcement powers and remedies are available where a breach of the procurement rules is found?
Both the HSPPA and the competent administrative courts have the power to annul, in whole or in part, illegal decisions of a contracting authority. Contracting authorities are obliged to conform with the decisions and judgments issued by the HSPPA and the administrative courts.
An economic operator who has been excluded from participation in procedures for the award of a contract or from the award thereof, in breach of EU law or national law, is entitled to claim compensation from the contracting authority. If the economic operator demonstrates that the contract would have been awarded to it had the breach not occurred, it will be entitled to compensation.
The HSPPA may decide declare a contract that has been concluded to be null and void if it establishes that, for example, the contracting authority awarded the contract without prior publication of a notice in the Official Journal of the European Union. However, if the HSPPA decides not to declare the contract null and void for a certain reasons, it will impose a fine on the contracting authority instead.
7.8 Can the review decision be appealed? If so, what is the process for doing so?
The decisions of the HSPPA are subject to actions for annulment before the competent administrative courts. Depending on the value of the contract involved, the action for annulment may be filed before either the Court of Appeal or the Council of State.
8 Privatisations and public-private partnerships
8.1 Do any special rules apply with regard to privatisations in your jurisdiction?
Privatisations are regulated, in principle, by Law 3049/2002. According to the case law of the administrative courts, the transfer of shares of a public enterprise must take place through a process governed by the principles of disclosure and transparency.
GrowthFund, the National Fund of Greece, manages a substantial portfolio of state-owned enterprises and is responsible, among other things, for their privatisation strategy.
8.2 Do any special rules apply with regard to public-private partnerships in your jurisdiction?
Public-private partnerships are regulated by Law 3389/2005, which outlines the relevant legal framework. These provisions are complemented by rules on public procurement and concession agreements.
9 Environmental, social and governance
9.1 How are ESG factors influencing public procurement in your jurisdiction? What specific concerns and considerations should be borne in mind in this regard?
Economic operators must comply with their obligations in the fields of environmental, social and labour law under penalty of exclusion.
Contracting authorities can include environmental and social considerations as award criteria to the extent that they are relevant to the subject matter of the contract.
10 Trends and predictions
10.1 How would you describe the current public procurement landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?
In December 2024, the European Commission launched a call for public consultation for the relevant procurement directives (2014/25, 2014/24 and 2014/23), with the aim of assessing the rules and subsequently revising them if needed.
At the national level, there is a trend of streamlining the procurement process. To this end:
- centralised purchasing bodies have been strengthened; and
- the National System of Electronic Public Procurement has been updated.
Currently, there are no legislative reforms in the pipeline that we are aware of.
11 Tips and traps
11.1 What are your top tips for participants in public procurement procedures in your jurisdiction and what potential sticking points would you highlight?
Participants should familiarise themselves with the National System of Electronic Public Procurement in order to be able to monitor published contract notices and submit tenders. Since contracting authorities must comply with the principle of formality during the evaluation process, participants should draft tenders with diligence, given that oversights or mistakes may lead to the exclusion of a tender.
It is also important that economic operators have a general understanding of recent administrative practice and case law regarding the drafting of tenders.
Insofar as economic operators which are not established in Greece are concerned, it is advisable to cooperate with a local partner to ensure the smooth and efficient submission of the tender.
11.2 What are your top tips for procurers in your jurisdiction and what potential sticking points would you highlight?
Procurers should consider familiarising with and using the whole spectrum of available award procedures in the EU procurement directives and not limit themselves to open or restricted procedures.
Award criteria should be aligned and updated in line with current technological advancements. The EU directives currently provide for a wide range of criteria, including the evaluation of the lifecycle of a product.
An effective assignment process requires, on the part of the contracting authority, personnel with knowledge, expertise and know-how. Currently, national contracting authorities face serious challenges in terms of adequate and specialised procurement personnel.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.