With its Decision No. 8292/2023, the Council of State issued its judgment on the recurring issue of the deferral of public contracts for services procurements. According to the judges, the principle that rules the entire discipline of public contracts is that once the contract expires, a new tender shall be scheduled. This fundamental principle, says the Council of State, cannot be avoided or prevailed by the autonomy of the parties (contracting authority and private contractor) when negotiating an extension of the duration of the contract. The exception to this general rule should therefore be accorded by the law under very specific circumstances. It is important that the possibility to defer the duration of the contract is decided before the contract is executed by the parties, and that the deferral is limited in duration and in order to lead the contracting authority to the issuance of a new tender or choice of a new contractor.
Originally published by August - September, 2023
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