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Council of Ministers Approves Bill for Better Legal Protection in Procurement

Council of Ministers Approves Bill for Better Legal Protection in Procurement

Entrepreneurs, especially in SMEs, find their legal protection in procurement inadequate. The cabinet aims to improve the balance between companies and contracting authorities by establishing complaint desks and tightening motivation requirements. The Council of Ministers approved this proposal from Minister Beljaarts. The bill is now sent to the Council of State for advice, after which it will be debated in the House of Representatives and the Senate.

    The bill not only aims for a better balance between entrepreneurs and contracting services such as municipalities, provinces, water boards, and the national government but also ensures that the interests of other bidders are considered before awarding a contract and the winning entrepreneur after the award. It is crucial that they do not remain in uncertainty for too long and that complaint handling is conducted uniformly across the Netherlands.

    Minister Beljaarts: “It is in the interest of both governments and businesses that procurement procedures run smoothly. If a conflict arises, there must be sufficient legal protection options. This is not functioning optimally now. Therefore, I want to improve this with a law. Companies must be able to rely on an effective government. Procurement is a typical example where The Hague can set a good example for businesses.”

    Four Concrete Improvements in Legal Protection

    The bill includes four concrete legal improvements, allowing entrepreneurs to easily raise issues in procurement and have their cases assessed substantively.

    Complaint desks will be established for all contracting authorities, and setting deadlines will be mandatory for effective complaint handling. Additionally, the Procurement Experts Committee—a national independent complaint committee—will have a stronger role. Finally, the bill tightens the motivation requirement for decisions made by contracting authorities, making it clearer for entrepreneurs why they do not receive a contract. They will also find it easier to contest decisions made by contracting authorities.

    The cabinet has previously announced plans to further professionalize the procurement practice of governments, which annually purchases services and products worth between 110 and 120 billion euros, including improving legal protection. The bill will be made public once the Council of State has provided its advice. The minister will then submit it to the House of Representatives.

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    Source published: 24 January 2025
    Source last updated: 24 January 2025
    Published on Openrijk: 24 January 2025
    Source: Economische Zaken