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Luxembourg's Ministry of Mobility and Public Works has announced plans to simplify and speed up the public procurement process in response to the current construction sector crisis.
Luxembourg's Minister for Mobility and Public Works, Yuriko Backes, has proposed a modification in the field of public procurement aimed at improving its efficiency. The aim is to raise the threshold below which contracting authorities can choose the negotiated procedure or the restricted procedure without publication of a notice, going from €60,000 (excluding VAT) to €79,000 (excluding VAT).
According to the ministry, this initiative arises from the need to support the construction sector in these difficult times and aims to optimise the regulation of public procurement by expanding the use of these procedures for small-scale contracts, encompassing the restricted procedure without publication of notice and the negotiated procedure. It also takes into account the impact of high inflation on prices.
By simplifying and accelerating the procedure for awarding small-scale public contracts, this proposed project would make it possible to award contracts worth up to €79,000 without imposing administrative burdens on companies. It would also offer contracting authorities the possibility of awarding more contracts quickly, thus facilitating the realisation of their projects.
This threshold increase is expected to be particularly beneficial for small and medium-sized construction companies, which would thus have greater accessibility to public projects, particularly in a context of order reduction in the private construction sector.
Luxembourg's Government Council (Cabinet) approved this draft regulation on Wednesday 24 January 2024; the draft regulation will continue to follow the regulatory procedure.
