The Law Today

The Regulations of Law No. 19,886 on Administrative Contracts for the Supply and Provision of Services are amended with respect to procedures whose terms and conditions are published between July 1, 2021 and December 31, 2021.

19 Oct 2021

Introduction

On October 14, Resolution No. 1.218, dated June 24, 2021, was published in the Official Gazette, which amends the Regulations of Law No. 19,886 of Bases on Administrative Contracts for Supply and Provision of Services, approved by Supreme Decree No. 250/2004 of the Ministry of Finance (hereinafter “Regulations”).

The purpose of these amendments is to facilitate the participation of a greater number of smaller companies in public contracting procedures, by making the requirements that bidders must comply with regarding the guarantees to be submitted in such procedures more flexible, in order to promote the economic reactivation of such companies, which has been adversely affected by the COVID-19 disease.

Thus, with respect to the contracting procedures whose terms and conditions are published between July 1, 2021 and December 31, 2021, both dates inclusive, it is established that:

Bid bonds shall not be required in the case of contracts equal to or less than 5,000 UTM, without prejudice to the provisions of Article 31 of the Regulations.

The bidding documents must state that the guarantees of faithful and timely performance may not exceed 5% of the total value of the contract, when the awarded supplier is a smaller company, in case they are required by the bidding entity, without prejudice to the provisions of Articles 68 and 69 of the Regulations.

Contact

Should you require additional information on this matter, please contact Andrea Abascal (aabascal@jdf.cl) and/or Rocío Vergara (rvergara@jdf.cl).

JDF