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Public procurement law

In this law you can find information about: Basic provisions; Conditions and manner of conducting public procurement procedure; Public procurement in the water management, energy, mining, telecommunications and transport sectors; Public procurement records; Public procurement records; Public procurement office; Protection of bidders' rights and public interest; Supervision; Annulment of contracts; Penal provisions; Transitional and final provisions.Official Gazette of the Republic of Serbia 2006
PUBLIC PROCUREMENT LAW
I. BASIC PROVISIONS
1. Subject of the Law
Article 1
This Law regulates the conditions, the manner and procedure for the procurement of
goods, services, and awarding work assignments when the procuring entity is a government body,
organization, institution or other legal person determined by this Law; determines the manner of
keeping records of contracts and other data concerning public procurement, determines the
activities and organizational form of the Public Procurement Office; establishes the Republic
Commission for the Protection of Rights in Public Procurement Procedures; determines the
manner of protecting the bidders' rights and public interest in public procurement procedures;
regulates other issues of relevance for public procurement.
2. Terms
Meaning of Terms
Article 2
Particular terms used in this Law shall have the following meaning:
1) public procurement shall mean the procurement of goods and services or awarding
work assignments by a government body, organization, institution or other legal persons regarded
as a procuring entity for the purposes of this Law, in the manner and under the conditions
prescribed by this Law;
2) public procurement contract shall mean a binding contract concluded in writing
between a procuring entity and a bidder in accordance with the conducted public procurement
procedure, whose subject is the procurement of goods, provision of services or performance of
works;
3) bidder shall mean a domestic or foreign legal or natural person offering to supply
goods, provide services, or perform works;
4) candidate shall mean a person whose qualifications were recognized in the first phase
of the restricted procedure;
5) public procurement procedures shall mean any procedures and actions that must be
conducted in accordance with this Law prior to the conclusion of a public procurement contract;
6) open procedure shall mean the procedure whereby all interested persons may submit
bids;
7) restricted procedure shall mean the procedure that is conducted in two phases and
where in the second phase bids may be submitted only by candidates;
8) negotiated procedure shall mean the procedure whereby a procuring entity negotiates
directly with one or more bidders regarding the terms of the public procurement contract;
9) design contest shall mean the procedure for the conclusion of contracts for the
provision of services of urban planning, designs in the area of architecture and civil engineering,
engineering, design or data processing, with designs being selected by a previously appointed
jury;
10) bid price shall mean the bid price determined by a bidder, expressed in dinars, which
includes all costs related to the public procurement subject;
11) abnormally low price shall mean a bid price that is considerably lower that the
comparable market price causing the procuring entity to doubt whether public procurement will
be performed;
12) criterion shall mean a measure used for evaluating, comparing and assessing bids;
13) requirement shall mean the procuring entity's request that has to be fully complied
with in the bid, in the manner prescribed by this Law and tender documents;
14) qualification procedure shall mean the manner of conducting the first stage of the
restricted procedure in the area of water management, energy, mining, telecommunications and
transport;
15) application shall mean a request of an interested person to participate in the first
phase of the restricted procedure;
16) timely bid shall mean a bid received by a procuring entity within the deadline
specified in the invitation to bid;
17) correct bid shall mean a bid submitted in a timely manner, for which it has been
established, following the opening and examination, that it fully complies with all the
requirements referred to in this Law and tender documents;
18) adequate bid shall mean a correct bid submitted in a timely manner, for which it has
been established that it fully complies with all the technical specifications;
19) acceptable bid shall mean a bid submitted in a timely manner, correct and adequate,
which does not restrict the rights of the procuring entity or obligations of the bidder, nor does it
impose any conditions thereon, and which does not exceed the amount of the estimated value of
the concrete public procurement;
20) discount on the bid price shall mean a method of determining the price that a bidder
may offer in its bid only when the subject of public procurement is subdivided into several lots
and the procuring entity cannot stipulate that method in the tender documents as an element of
the criteria;
21) goods shall mean movable objects, products and equipment, electricity, raw materials
and production materials in solid, liquid and gaseous state;
22) goods, services or works of the same kind shall mean any goods, services or works
that have the same classification, purpose and characteristics;
23) public procurement by lots shall mean any procurement whose subject is subdivided
into several separate wholes of the same kind and which is designated as such in the call for
competition and tender documents;
24) electronic bid shall mean any bid or part of a bid which a bidder delivers to the
procuring entity in the electronic form and it must be stipulated as such by tender documents,
meet the principles of electronic business according to special regulations and constitute a clear
whole with the other parts of the bid of the same bidder;
25) electronic auction shall mean any contest between bidders in public procurement
procedures through provision of new, more advantageous bids electronically, which will be
ranked by the procuring entity by use of automatic evaluation method and
26) public funds shall mean funds controlled by and at the disposal of the Republic, local
authorities and compulsory social insurance organizations, i.e. any funds collected, received,
kept, allocated and spent by procuring entities.
Procuring Entity
Article 3
A procuring entity shall mean:
1) a government body, organization, institution or other direct or indirect budget
beneficiary within the meaning of the law regulating the budget system and the budget, as well as
a compulsory social insurance organization;
2) public undertaking;
3) any legal entity also involved in an activity of common interest, if any of the following
conditions are met:
(1) that more than half the members of that legal entity's managing body are
representatives of the procuring entity;
(2) that the representatives of the procuring entity have more than half the votes in the
body of that legal entity;
(3) that the procuring entity supervises the operation of that legal entity;
(4) that the procuring entity possesses over 50% of the shares or stake in that legal entity;
(5) that over 50 % is financed from the procuring entity's funds.
4) any legal entity founded by procuring entities, which also performs an activity of
common interest and which meets at least one of the conditions referred to in item 3) of this
Article.
3. Subject of a Public Procurement Contract
Procurement of Goods
Article 4
The subject of a public procurement contract may be:
1) the purchase of goods
2) the renting of goods;
3) the leasing of goods (with or without the option to buy).
A public procurement contract may include the provision of services if the services are
necessarily linked to the supply of goods (assembly, transport, insurance or other services defined
by the procuring entity).
Procurement of Works
Article 5
The subject of a contract on public procurement of works shall be:
1) the execution of works;
2) the design and execution of works linked to the specific activities listed in Annex II,
attached to this Law and forming an integral part hereof;
3) construction works on a facility taken as a whole which meet all the economic and
technical requirements of the procuring entity.
The subject of the public procurement of works is also the performance of works which
are directly or indirectly financed by the procuring entity in an amount exceeding 50% of the
public procurement value and which are related to the construction of hospitals, religious
buildings, sports and recreational facilities and vacation facilities, school and university buildings
and buildings used by government bodies, as well as civil engineering works in accordance with
Annex II.
The procuring entity financing the performance of works shall be responsible for the
application of the provisions of this Law in the case referred to in paragraph 2 of this Article.
Procurement of Services
Article 6
The subject of a contract on public procurement of services shall be the services listed in
Annexes I A and I B, attached to this Law and forming an integral part hereof.
All provisions of this Law shall apply to the procurement of the services specified in
Annex IA.
The provisions of this Law regulating low-value public procurement shall apply to the
procurement of the services specified in Annex IB, regardless of the value of these services.
If the subject of service public procurement includes the services referred to in Annex IA
and Annex IB, all provisions of this Law shall apply if the estimated value of the service referred
to in Annex IA is higher than the estimated value of the service referred to in Annex IB. If the
value of the service referred to in Annex IB is higher than the value of the service referred to in
Annex IA, the provisions of this Law regulating low-value public procurement shall apply.
As contract of public procurement of services shall also be deemed any public
procurement contract whose subjects are:
1) services and goods if the estimated value of the services exceeds the estimated value of
the goods included in this contract;
2) the services and works referred to in Annex II that are necessary for the provision of
the service that is the subject of the contract.
The provisions of this Law shall also apply to the procurement of services directly or
indirectly financed by the procuring entity in an amount of over 50% of the public procurement
value.
The procuring entity financing the provision of the service shall be responsible for the
application of the provisions of this Law in the case referred to in paragraph 6 of this Article.
Procurements Exempt from the Law
Article 7
The provisions of this Law shall not apply to the procurement:
1) from the organizations which are considered, for the purposes of this Law, to be the
procuring entity and to which the Republic of Serbia, a territorial autonomy or local government
granted on the basis of a special law, bylaw or other regulation a special or exclusive right to
provide the services that are the subject of the public procurement;
2) to which different procurement rules apply and which is conducted:
а) based on of an international agreement pertaining to the supply of goods, performance
of works, provision of services or design contests,
b) from the proceeds of foreign credits (loans) in accordance with special procedures of
international organizations;
3) aimed at providing basic life conditions in the case of natural disasters, other accidents
or catastrophes, according to the regulations on protection against such disasters, accidents or
catastrophes;
4) to which the special regulation stipulates that can be defined as confidential and that is,
by the decisions of the competent body based on authority provided in special regulations,
defined as confidential, because the knowledge of unauthorized persons that such procurements
are conducted, or knowledge that subjects of public procurement have certain specifications, or
are executed by specific bidder, would threatened the national security and security of the
citizens;
5) of the goods the procuring entity procures for further sale, processing and sale as well
as for the provision of services to third parties in the market, provided that the procuring entity
has no exclusive or special rights to resell or lease these goods or provide the services for which
it will use these goods;
6) of the goods procured, with a prior approval from the Government, from the Republic
Commodity Reserves Directorate;
7) of the property or rights related to it, with the provisions of this Law applying to the
procurement of the financial services necessary for the procurement of the property;
8) aimed at the acquisition, development, production or co-production of radio or
television program or broadcasting time;
9) of services of voice telephony, telex, radio-telephony, paging, internet and satellite
services;
10) of arbitration and amicable dispute resolution services;
11) of financial services in connection with the issue, sale, purchase or transfer of
securities or other financial instruments;
12) relating to the conclusion of employment and service contracts;
13) of research and development services other than those where the procuring entity uses
research results exclusively for its purposes in the conduct of its own affairs, provided that the
costs of such services are covered in full by the procuring entity and
14) of the services of expert individuals, entrepreneurs or legal persons that perform, for
and on behalf of the Privatization Agency and under its supervision, the activities of receiver.
The Minister in charge of financial activities shall define the list of the international
organizations referred to in paragraph 1 item 2) indent b) of this Article whose special public
procurement procedures may be applied instead of the provisions of this Law.
4. Public Procurement Principles
Principle of Economic and Efficient Use of Public Funds
Article 8
A procuring entity shall ensure that the public procurement procedure is conducted and
the selection of bids made within the time limits and in the manner prescribed by this Law, with
minimum costs in effecting public procurement.
Public funds may be used only for the purposes determined in the public procurement
contract.
Principle of Ensuring Competition among the Bidders
Article 9
A procuring entity may not limit competition among the bidders; in particular, a procuring
entity may not prevent any bidder from participating in public procurement by unjustified use of
the negotiated procedure or by using discriminatory requirements or criteria.
Persons who have been engaged in preparing tender documents or parts thereof may not
appear as bidders or subcontractors, nor may they cooperate with the bidders in the course of bid
preparation.
Principle of Transparency of Public Procurement Procedure
Article 10
Public procurement adverts shall be published in the "Official Gazette of the Republic of
Serbia" and on the Public Procurement Portal in the manner prescribed by Article 69 of this Law.
A person participating in the public procurement procedure shall have the right during bid
opening to review the data from the bid which are entered in the minutes of bid opening.
A person who participated in the public procurement procedure shall have the right to
review the data concerning the conducted public procurement procedure after the procuring entity
has made the decision referred to in Articles 22, 79 or 81 of this Law, regarding which that
person may submit a written request to the procuring entity within two days from the day of
decision delivery. The procuring entity shall enable access to the documents to the person who
submitted the request to review the data concerning the conducted public procurement procedure
within two days from the day of receiving such request.
Principle of Equality of Bidders
Article 11
A procuring entity shall ensure equality of all bidders in all phases of the public
procurement procedure.
The procuring entity may not impose requirements that would constitute territorial,
subject or personal discrimination among bidders, or discrimination arising from the
classification of the business activity performed by the bidder.
Determination of the origin of goods or services is permitted in the cases and for the
purposes stipulated by special regulations.
A procuring entity shall not exclude any bid merely because the bidder’s registered
address is located in a state with which the Republic of Serbia has not concluded an agreement on
equal treatment of domestic and foreign bidders, if there is de facto equality as determined by the
Ministry in charge of foreign economic relations.
5. Protection of Data, Documentation and Keeping Records of the Procedure
Data Protection
Article 12
A procuring entity shall:
1) keep as confidential all data on bidders contained in bids that are designated as
confidential by a special regulation and designated as such in the bid by the bidder;
2) refuse to disclose information that would entail a breach of confidentiality of data
received in a bid;
3) keep the names of bidders and applicants, as well as bids and applications, as a trade
secret until the expiry of the time limit determined for bid or application opening.
The price and other information from the bid that are of significance for applying the
criteria elements and bid ranking shall not be deemed confidential.
Determination of Confidentiality
Article 13
A procuring entity may require in the tender documents the protection of confidentiality
of the information it places at the bidders' disposal.
A person who has received data designated as confidential shall observe their
confidentiality irrespective of the degree of confidentiality stipulated.
Documentation and Keeping Records of the Procedure
Article 14
A procuring entity shall:
1) keep records of all the phases of the public procurement procedure;
2) keep all the documentation pertaining to public procurement in line with the
regulations governing documentation and archives, at least eight years from the expiry of the
agreed period for the execution of the individual public procurement contract;
3) keep records of all public procurement contracts awarded.
6. Language in Public Procurement Procedure
Article 15
A procuring entity shall prepare tender documents and conduct the procedure in the
Serbian language.
Tender documents for public procurement of goods and services exceeding 150,000,000
dinars or for works procurement exceeding 300,000,000 dinars shall also be prepared by the
procuring entity in a foreign language commonly used in international trade.
A bidder shall submit his bid in the language used in the tender documents, that is, in the
language specified by the procuring entity in the tender documents.
Article 16
A procuring entity may allow bids, in their entirety or in part, to be submitted in a foreign
language, especially in the section pertaining to technical characteristics, quality and technical
documentation.
In the case referred to in paragraph 1 of this Article, the procuring entity shall specify
which part of a bid may be submitted in a foreign language and which foreign language is to be
used.
If, in the course of the review and evaluation of bids, a procuring entity finds that a part of
a bid should be translated into the Serbian language, it shall set a time limit to the bidder for
translating that part of the bid into Serbian.
In the event of dispute, the Serbian version of tender documents and bid shall prevail.
7. Currency
Article 17
The values in tender documents and bids shall be stated in dinars.
A procuring entity may allow the bidder to state the values in a foreign currency as well,
in which case it shall stated in the tender documents that the values shall be converted into dinars
using the corresponding medium exchange rate of the National Bank of Serbia valid on the day of
bid opening.
Article 18
If a bidder has been allowed to submit a bid in a foreign currency, a procuring entity shall
specify in the tender documents the currency which can be used to state the prices in the bid.
8. Anti-Corruption Rule
Article 19
A procuring entity shall reject a bid if it has indisputable proof that a bidder has given,
offered or alluded to, directly or indirectly, a gift or some other benefit to a member of the Public
Procurement Committee, a person who participated in the preparation of the tender documents, a
person participating in planning the public procurement or some other person in order to
influence them in order to discover confidential information or influence the procuring entity's
action or decision making in any phase of the public procurement procedure..
A procuring entity shall also reject a bid if it has indisputable proof that a bidder has
threatened, directly or indirectly, a member of the Public Procurement Committee, a person who
participated in the preparation of the tender documents, a person participating in planning the
public procurement or some other person in order to influence them in order to discover
confidential information or influence the procuring entity's action or decision making in any
phase of the public procurement procedure.
A procuring entity shall, in cases referred to in paragraph 1 and 2 of this Article,
immediately notify competent bodies, which will take legal measures against such entities.
II. CONDITIONS AND MANNER OF CONDUCTING PUBLIC PROCUREMENT
PROCEDURE
1. Public Procurement Procedure
Types of Procedure
Article 20
Public procurement procedures are as follows:
1) open procedure;
2) restricted procedure;
3) negotiated procedure with a prior notice;
4) negotiated procedure without a prior notice;
5) design contest;
6) low-value public procurement procedure.
Selection of the most advantageous bid shall be performed, as a rule, in the open
procedure of public procurement.
Selection of the most advantageous bid may also be performed in other public
procurement procedures, if the conditions prescribed for that by this Law are met.
Оpen Procedure
Article 21
The open procedure is a procedure wherein all interested persons may submit bids
according to requirements specified in the tender documents.
Restricted Procedure
Article 22
The restricted procedure is a procedure where in the first phase a procuring entity
recognizes bidders’ qualifications on the basis of previously determined requirements, whereas in
the second phase it invites all the bidders whose qualifications have been established (candidates)
to submit a bid.
The procuring entity may apply the restricted procedure in the case when the subject of
public procurement are such goods, services or works that, with regard to technical, personnel
and financial capacity, may be delivered, provided or performed only by a small number of
bidders.
The procuring entity may also conduct the restricted procedure in the case when it is not
possible to plan public procurement in advance in terms of quantities and time, and the subject of
that procurement are occasional services or consumer goods or occasional repairs or maintenance
works that are provided, delivered or performed, not according to special requests of a procuring
entity, but according to the market conditions.
The procuring entity shall recognize qualifications of the applicant for which it has
determined that it meets the requirements referred to in Article 44 of this Law based on the
evidence submitted by the applicant along with the application in accordance with Article 45 of
this Law.
The procuring entity shall make, within the time limit specified in the call for
competition, a justified decision on the recognition of qualifications that contains a list of at least
three candidates and a period during which the qualifications are recognized, which may not be
longer than two years, and must state the reasons for the rejection of other applications in the
decision explanation.
The procuring entity shall deliver the decision referred to in paragraph 5 of this Article to
all applicants within three days from the day of its adoption.
The procuring entity may exclude a candidate from the list of candidates only for the
reasons based on the requirements defined in the tender documents for the first phase of restricted
procedure, on which it shall make a decision which shall contain in its explanation the reasons for
exclusion of the candidate and which it shall deliver to all candidates within three days from the
day of its adoption.
Negotiated Procedure with a Prior Notice
Article 23
A procuring entity may conduct a negotiated procedure with a prior notice:
1) if in the open procedure or in the second phase of restricted procedure all of the bids it
received were incorrect and/or unacceptable provided that the originally defined requirements for
participation in the procedure, technical specifications and criteria for the selection of the most
advantageous bid have not been altered. If the procuring entity decides to invite to the negotiated
procedure only all the bidders that participated in the open procedure or in the second phase of
the restricted procedure to supplement their bids and thus make them correct and acceptable, it
shall not have to publish a call for competition. The price offered in this negotiated procedure
may not be higher than the price offered in the open or restricted procedure;
2) in exceptional cases where, due to the nature of works, goods or services as well as the
risks related to them, it is not possible to estimate the public procurement value in advance;
3) in the case of public procurement of works purely for the purpose of research,
development or experiment and not for the purpose of securing a profit or of recovering research
and development costs.
The procuring entity shall ensure in the course of negotiated procedure that the contracted
price does not exceed the comparable market price and check the quality of the subject of public
procurement with due diligence.
The procuring entity shall define in the tender documents the contractual elements to be
negotiated and the manner of negotiation as well as keep the minutes of the negotiations.
Negotiated Procedure without a Prior Notice
Article 24
A procuring entity may conduct a negotiated procedure without a prior notice:
1) if it did not receive any bids in the open procedure or in the second phase of restricted
procedure or any applications in the first phase of the restricted procedure, or if all of the bids are
inadequate, provided that the originally defined subject of the public procurement and the
conditions for participation in the procedure, technical specifications and the criteria for selection
of the most advantageous bid are not altered;
2) in the case of public procurement of goods purely for the purpose of research,
development or experiment and not for the purpose of securing a profit or recovering research
and development costs;
3) if, for technical or artistic reasons related to the public procurement subject or for
reasons related to the protection of exclusive rights, the procurement may be executed only by a
particular bidder;
4) if, for reasons of extreme urgency brought about by extraordinary circumstances or
unforeseen events, whose appearance in no case depends on the will of the procuring entity, the
procuring entity was not able to observe the time limits laid down for the open or restricted
procedure;
5) for additional deliveries by the original supplier intended as a partial replacement of
products, materials or installations, or as the extension of the existing products, materials or
installations, where a change of supplier or provider of services would oblige the procuring entity
to obtain materials having different technical characteristics which would result in
disproportionate technical difficulties in operation and maintenance, provided that the total value
of all additional deliveries may not exceed 25% of the total value of the contract originally
concluded;
6) for the public procurement of goods offered and purchased on commodity exchanges;
7) for additional works or services not included in the original project or the first public
procurement contract, which, due to unforeseeable circumstances, have become necessary to the
performance of the public procurement contract, on condition that the award is made to the
original service provider or contractor and that the total value of all additional services or works
does not exceed 25% of the total value of the contract originally concluded, as well as that:
(а) such additional services or works cannot be technically or economically separated
from the first public procurement contract without causing disproportionate technical difficulties
or disproportionately high costs to the procuring entity or
(b) such services or works, which the procuring entity could procure separately from the
performance of the original contract, are necessary to the further phases of providing services or
performing works;
8) for new works or services consisting in the repetition of similar services or works
assigned to the original service provider or contractor, provided that such services or works
conform to the basic project for which the public procurement contract was awarded after a call
for competition, that this possibility is mentioned in the first publication of the call for
competition and that no more than three years have passed since the conclusion of the first
contract;
9) for purchases of goods under particularly advantageous conditions from a supplier
winding up his business activities, with the agreement of other creditors, in accordance with the
regulations governing company liquidation;
10) for services that are part of the follow-up to a design contest organized in accordance
with this Law, if the contract in question was awarded to the winner or the winners of that
contest, and if the procuring entity invites each of the winners to participate in the negotiations.
11) for the procurement of services and goods from firms dealing with the training,
professional rehabilitation and employment of persons with disability, if such procurements are
directly connected with the training, professional rehabilitation and employment of such persons,
provided that all of the participants in the joint bid and all subcontractors are from the mentioned
group of companies and the quality, price and time limits for the delivery of goods and provision
of services meet the procuring entity's requirements.
The procuring entity shall, within three days from the day of making the decision on the
selection of the most advantageous bid in the cases referred to in paragraph 1 of this Article,
deliver for publication in the "Official Gazette of the Republic of Serbia" and on the Public
Procurement Portal in the manner prescribed by Article 69 of this Law, a contract award notice,
which shall contain the information on the subject of the procurement, on the bid selected and on
the basis for conducting the negotiated procedure.
The procuring entity's obligation referred to in paragraph 2 of this Article shall not relate
to the case referred to in paragraph 1 item 6) of this Article.
The procuring entity shall, within three days from the day of selection of the most
advantageous bid, submit to the Public Procurement Office a report on contract award in the
negotiated procedure referred to in paragraph 1 item 4) of this Article, which shall contain the
information referred to in Article 80 of this Law.
The procuring entity shall ensure in the course of negotiations that the contracted price
does not exceed the comparable market price and check the quality of the subject of public
procurement with due diligence.
The procuring entity shall define in the tender documents the contractual elements to be
negotiated and the manner of negotiation, as well as keep the minutes of the negotiations.
The provisions of Article 82 paragraph 5 and Article 108 paragraph 1 of this Law shall
not apply to the conducting of the negotiated procedure referred to in paragraph 1 item 4) of this
Article.
Design Contest
Article 25
A procuring entity shall conduct a procedure of public procurement of services by means
of a contest in the field of urban planning, architecture, construction, engineering, design and data
processing.
A plan or design shall be selected by an independent jury.
The jury referred to in paragraph 2 of this Article shall be composed exclusively of
natural persons who are not related to the participants in the contest.
If the procuring entity demands from participants in а contest particular professional
qualifications or experience, at least a third of the members of the jury must have at least the
same qualifications or experience.
The jury shall be autonomous in its decisions and consider anonymous plans or designs.
A contest for plans or designs, with prize awarding and payment to the participants, may
be conducted independently or as an integral part of another public procurement procedure.
Low-Value Public Procurement Procedure
Article 26
Low-value public procurement contract, for the purposes of this Law, shall be the
procurement of goods, services or works of the same type, whose estimated value, at the annual
level, is lower than the value determined by the law regulating the annual budget of the Republic
of Serbia
The Law referred to in paragraph 1 of this Article shall also determine the procurement
value representing the threshold in the budget year below which procuring entities are not
obligated to apply the provisions of this Law.
The Minister in charge of financial activities shall regulate the procedure for low-value
public procurement.
2. Initiation of a Procedure
Conditions for Initiation of a Procedure
Article 27
A procuring entity may initiate the public procurement procedure if such procurement is
envisaged by the annual procurement plan and if funds for that particular procurement contract
have been set aside in the budget of the Republic of Serbia, of a territorial autonomy, local selfgovernment
or in the financial plan of the procuring entity.
The funds set aside for a particular public procurement contract may not exceed the
amount stipulated by the regulation governing budget execution and public financing.
If a public procurement contract lasts for several years, the liabilities that will become due
in the following years must be stipulated in the amounts provided for by the regulations
governing budget execution for each particular year.
If the public procurement in question concerns investments, the procuring entity shall
prepare the investment program according to the common methodology for preparing investment
programs, in line with the development plan.
The program referred to in paragraph 4 of this Article shall be approved in writing by the
chief executive officer or the responsible person of the procuring entity.
If the republic budget, budget of a territorial autonomy, budget of a local self-government
or the financial plan of another procuring entity has not been passed, the procuring entity may
initiate the public procurement procedure only up to the amount of the funds planned according
to the regulation on temporary financing.
Decision to Initiate a Procedure
Article 28
A procuring entity shall initiate the public procurement procedure by a written decision
which contains:
1) registry number of the public procurement for the current year;
2) subject of public procurement and type of the public procurement procedure;
3) estimated value of public procurement;
4) data on the decision on approving public procurement for investment purposes;
5) provisional dates for conducting the individual phases of the public procurement
procedure and
6) the data on the budget or financial plan allocation for the payment.
In the case of application of the restricted or negotiated procedure, the decision shall also
contain the reasons for application of such procedure.
The decision may also contain other elements provided by this Law if the procuring entity
considers them necessary for conducting the public procurement procedure.
When passing a decision to initiate a public procurement procedure, the procuring entity
shall at the same time adopt a decision on the formation of a public procurement committee
pursuant to prescribed criteria for the establishment of such committees.
The Minister in charge of financial activities shall lay down in detail the criteria for
establishing public procurement committees.
Conduct of a Public Procurement Procedure by Other Procuring Entity
Article 29
A procuring entity may, simultaneously with the adoption of a decision on procedure
initiation and a decision on the committee establishment, authorize another procuring entity to
conduct the public procurement procedure or undertake specific actions in that procedure for and
on behalf of it.
3. Tender Documents
Preparation and Contents of Tender Documents
Article 30
A procuring entity shall prepare tender documents so that the bidders may prepare correct
bids on the basis of such documents.
The data contained in the tender documents shall be identical to the data contained in the
call for competition.
Tender documents shall contain:
1) an invitation to tender;
2) instructions to bidders on how to prepare a bid,
3) a bid form;
4) a form for the evaluation of compliance with the requirements referred to in Article 44
of this Law and an instruction how the compliance with these requirements is evidenced;
5) a model contract (except in the negotiated procedure and in the case of procuring a loan
as financial service when the bid documents contain a loan application of the procuring entity
based on which a bidder delivers its model contract);
6) type, technical characteristics (specifications), quality, quantity and description of
goods, services or works, manner of executing control and quality assurance, time limit for
contract execution, place of execution or of goods delivery, any additional services and the like
(except in the case of procuring a loan as financial service);
7) technical documentation and plans, or documents on solvency of the procuring entity in
the case of the public procurement of a loan as financial service;
8) a price structure form, with an instruction how to complete it.
Technical characteristics referred to in paragraph 3 item 6) of this Article and technical
documentation referred to in paragraph 3 item 7) of this Article must contain proof of bidders’
plans to comply with technical standards of accessibility for disabled persons.
The Minister in charge of financial activities shall regulate in detail the form and content
of the loan application referred to in paragraph 3 item 5) of this Article, as well as the form and
content of the documents on the procuring entity's solvency referred to in paragraph 3 item 7) of
this Article.
The procuring entity may specify in the tender documents the type of financial security
instruments by which bidders guarantee the fulfillment of their obligations in the public
procurement procedure, as well as the fulfillment of their contractual obligations and the refund
of advance payment (various forms of pledging securities or other movable property, mortgages,
promissory notes, guarantees given by other legal person possessing adequate creditworthiness,
bank guarantees, insurance policies, etc.).
Tender documents may also contain other elements that are, in view of the subject of
public procurement, necessary for the preparation of bids.
Tender documents for the first phase of the restricted procedure and for the qualification
procedure shall contain:
1) an invitation to tender;
2) instructions to bidders on how to prepare an application;
3) an application form and
4) a form for establishing the qualifications and instructions on how to prove the
applicants’ qualifications.
The procuring entity shall mark each page of the tender documents with an ordinal
number and the total number of pages of the tender documents.
The Minister in charge of financial activities shall regulate in detail the compulsory
elements of the tender documents.
The law regulating the annual budget of the Republic shall stipulate the amount of public
procurement funds above which a procuring entity shall demand a bank guarantee for the
fulfillment of obligations in the public procurement procedure, as well as the fulfillment of
contractual obligations.
4. Access to Tender Documents
Time Limit for Submission of Tender Documents
Article 31
As of the day of the publication of the call for competition, a procuring entity shall enable
interested persons to review the tender documents, take over the tender documents or send the
documents by post, telefax or e-mail within two days of having received a request from a bidder,
and may also post them on the Public Procurement Portal.
In the case of takeover or delivery of the tender documents, the procuring entity shall
charge only the costs of copying and delivering the tender documents.
Amendments to Tender Documents
Article 32
If within the time limit for tender submission a procuring entity amends the tender
documents, it shall forward these amendments without delay and with no charge to the interested
persons who have already received the tender documents.
Interested persons may request from the procuring entity additional information or
clarifications in writing concerning the preparation of a bid up to five days before the expiry of
the time limit for bid submission.
In the case referred to in paragraph 2 of this Article, the procuring entity shall send a
written reply to the interested person within the time period and in the manner stipulated in
Article 31 paragraph 1 of this Law, and shall at the same time forward this information to all
other persons who have received the tender documents.
If the tender documents or supplementary documents are too extensive, or if a bid can be
prepared only after a direct inspection of the location where the public procurement is to be
executed, or if a procuring entity amends the tender documents six or fewer days before the
expiry of the time limit for the submission of bids, the procuring entity shall extend the time limit
for bid submission.
The procuring entity shall inform in writing all persons who have received the tender
documents of the extension of the time limit for bid submission.
The decision on the extension of the time limit for bid submission shall be published in
the same manner as the call for competition.
After the expiry of the time limit for bid submission, the procuring entity may not amend
the tender documents.
5. Determining the Estimated Public Procurement Value
Determining the Estimated Value of Public Procurement of Goods
Article 33
The basis for calculating the estimated public procurement value shall be determined in
the following manner:
1) in the case of contracts for sale, rental or lease and when the contract term is a period
of 12 months or less, the total estimated contract value for its full duration shall be taken into
account, whereas when the contract term is longer than 12 months, the total contract value shall
include the estimated value for the first 12 months and the estimated value for the residual period
until the time limit expiry;
2) in the case of the contract referred to in paragraph 1 item 1 of this Article being
concluded for an indefinite period, as well as in the event of uncertainty regarding the term for
which the contract is concluded, the monthly estimated value of the contract multiplied by 48
shall be used
In the case of periodic contracts, as well as contracts that are to be extended after the
expiry of a certain time limit, the estimated public procurement value shall be determined on the
basis of the actual aggregate value of similar contracts concluded over the previous budget year or
in the course of the previous 12 months, adjusted for anticipated changes in the quantity or value of
the goods whose procurement is the subject of the contract over 12 months following the
conclusion of the original contract or based on the estimated total value during 12 months after
the first delivery or for the duration of the contract if the contract term is longer than 12 months.
Determining the Value of the Public Procurement of Services
Article 34
When calculating the estimated value of public procurement of services, a procuring
entity shall include all the expenses concerning such service incurred by the bidder.
For certain services the following amounts shall be taken into account by the procuring
entity:
1) for insurance services - the premium amount, as well as other types of payments
charged in connection with the service;
2) for banking and other financial services (except for loan-related services) – fees,
commissions, as well as other types of payments charged in connection with the service;
3) for architectural services, industrial design, spatial planning and the like – the fee or
commission.
The procuring entity shall determine the estimated agreed value of the loan according to
the methodology prescribed by the National Bank of Serbia.
If a procuring entity cannot determine the estimated service value due to the contract term
length, the service value shall be determined in the manner prescribed by Article 33, paragraph 1
of this Law.
Determining the Value of Public Procurement of Works
Article 35
The estimated value of public procurement of works shall be determined by taking the
total works value as the basis for calculating the value of public procurement of works.
When determining the estimated value of public procurement of works, a procuring entity
shall include in the works value the value of all the goods and services necessary for the
execution of the works contract.
The estimated value of public procurement of works shall not include the value of goods
and services that are not necessary for the contract execution.
Determining the Public Procurement Value per Lot
Article 36
The subject of public procurement may be subdivided into a number of separate units (lots),
so that each lot may be subject of a separate contract.
When the public procurement subject is subdivided into separate lots, the value of all lots
over the contract period must be taken into account in the determination of value of such
procurement.
A bidder may submit a bid for one or more lots. The bid must include at least one whole
lot.
A bidder shall state in the bid whether the bid relates to the entire procurement or only to
specific lots.
If a bidder has submitted a bid for two or more lots it must be submitted so that it may be
evaluated for each lot separately.
Method of Determining the Public Procurement Value
Article 37
A procuring entity shall not select the procurement valuation method so that, due to a
lower estimated value, a call for competition is avoided.
The estimated public procurement value shall be stated in the full amount without
including the value added tax.
6. General Rules on Determining Technical Elements of Public Procurement
Technical Specifications
Article 38
Technical specifications constitute an obligatory part of the tender documents.
A procuring entity shall state technical specifications in the tender documents pertaining
to each individual public procurement.
A procuring entity shall define the technical specifications:
1) with a reference to Serbian, European or other standards and related documents, so that
each reference must be accompanied by the words "or equivalent" or
2) in the form of desired functional characteristics or requirements for the work
completion, which must be sufficiently precise and clear so that the bidders could prepare their
bids and so that the procuring entities could procure the goods, services or works that are in
accordance with their objective needs.
When defining technical specifications in tender documentation, procuring entity shall
prescribe mandatory compliance to technical standards of accessibility for disabled persons.
In the case of defining technical specifications in the manner stipulated by paragraph 3
item 1) of this Article, the procuring entity may not reject a bid based on the fact that the goods,
services or works offered do not fulfill the specified requirements regarding the required standard
if the bidder provides adequate evidence that the solutions it offers fulfill the requirements from
the required standard in an essentially equivalent manner.
Notwithstanding the provisions of paragraph 3 item 1) of this Article, if a technical
regulation refers to a Serbian standard, such standard shall be obligatory and apply as technical
regulation, without mentioning the words "or equivalent".
The competent ministry shall establish whether the technical regulations and standards
referred to in paragraph 6 of this Article exist.
In the case referred to in paragraph 6 of this Article, the procuring entity shall also accept
any other standard fulfilling the requirements of the Serbian standard as well as the evidence
confirming this.
Use of Technical Specifications
Article 39
A procuring entity may not use or refer to technical specifications specifying goods,
services or works of a specific make, source, or of a particular construction, if such a designation
favors a certain bidder or might unwarrantedly eliminate other bidders.
The procuring entity may not include in the tender documents any provision that would
result in favoring or eliminating certain bidders, in the manner referred to in paragraph 1 of this
Article, unless such a specification is justified by the subject of the contract.
The procuring entity may not indicate in the tender documents any particular trade mark,
patent, type, specific origin or production.
Where the procuring entity is unable to give a description of the subject of the contract in
the tender documents using specifications which are sufficiently intelligible to bidders, the
indication of elements such as trademarks, patents, type or manufacturer must be accompanied by
the words “or equivalent”.
Compliance Assessment
Article 40
The evidence of the compliance of goods, services or works with the technical
specifications may be a compliance declaration, certificate, accreditation or other results of
compliance assessment according to the standards and related documents for compliance
assessment or any other appropriate instrument by which a bidder proves the compliance of the
bid with the technical specifications.
The evidence of compliance of a service with the technical specifications may be a
compliance declaration, certificate or other results of compliance assessment according to the
standards and related documents for compliance assessment.
Content of Technical Specifications or Project Documentation
Article 41
The technical specifications and project documentation, for the purposes of this Law,
shall mean the technical requirements that are an obligatory integral part of the tender documents
laying down the characteristics of works, materials, products, goods or services. These
specifications shall ensure that the works, materials, products, goods or services to be procured are
described in a manner that is objective and appropriate to the procuring entity’s needs.
Technical specifications may contain requirements related to the quality, performance,
safety or dimensions of the material, product, good, or service, for the purpose of providing
quality assurance, terminology, designations, testing and test methods, packing, marking and
labeling.
In the case of public procurement of civil works, technical specifications may also include
regulations concerning designs and cost calculation, test, inspection and takeover requirements,
as well as techniques or method of construction.
Standards
Article 42
The standard referred to in Articles 38 and 40 of this Law shall be a document defined by
consensus and adopted by a recognized body, in which rules, guidelines or characteristics are
defined for general and recurrent use for the activities or their results for the purpose of achieving
an optimal level of regulation in a specific field.
The related document referred to in Articles 38 and 40 of this Law shall be a document
that was adopted by a standardization organization and is available to the public but does not
comply with the requirements to be adopted as a Serbian standard.
The standard referred to in paragraph 1 of this Article may be the following:
1. International standard, as a standard adopted by the international organization
(international body) for standardization, accessible to the public;
2. European standard, as a standard adopted by the European standardization
organizations, accessible to the public;
3. Serbian standard, as a standard adopted by the standardization organization of the
Republic of Serbia, accessible to the public;
4. Other standards, as standards that may be accepted on various grounds (e.g. industry
standards, company standards and the like)
Statement of Essential Requirements and Patent Fee Costs
Article 43
Essential requirements not included in the current technical norms and standards, and
relating to safety and other factors of common interest, shall be applied and shall be expressly
stated in the tender documents.
A procuring entity may state in the tender documents that the patent fee, as well as the
liability for any breach of protected intellectual property rights of third persons, shall be borne by
the bidder.
7. Requirements for Participation in Public Procurement Procedure
Mandatory Participation Requirements
Article 44
A procuring entity shall publish in the call for competition the requirements that a bidder
has to fulfill in order to be able to participate in the public procurement procedure.
A bidder has the right to participate in the procedure if it:
1) is registered with the competent body, or entered in the appropriate register;
2) is also established for the performance of the specific activity which is the subject of
public procurement;
3) has not been prohibited by a final court or administrative measure from performing the
activity that is the subject of public procurement in the period of two years prior to the
publication of the call for competition;
4) has paid due taxes and other forms of public charges in accordance with the regulations
of the Republic of Serbia or a foreign country if its registered address is in its territory;
5) has a valid permit issued by the competent body for carrying out the activity which is
the subject of public procurement, if such a permit is stipulated by a special regulation.
6) possesses the necessary financial and economic capacity.
7) possesses sufficient technical and personnel capacity.
The procuring entity shall define in the tender documents what it considers to be the
necessary financial and business as well as sufficient technical and personnel capacity.
The provisions of paragraph 2 items 6) and 7), as well as paragraph 3 of this Article shall
not apply in the case of public procurement of a loan financial service, where a commercial bank
appears as a bidder and where the bank is obliged to guarantee the confidentiality of information
about its clients in accordance with the law regulating bank operation.
The procuring entity may also define other additional requirements for participation in the
public procurement procedure, especially if they relate to social and environmental issues.
The procuring entity shall define the requirements for participation in the procedure so
that these requirements do not discriminate against individual bidders and that they are logically
related to the subject of public procurement.
The procuring entity may impose additional requirements concerning the fulfillment of the
obligations of the bidder towards its subcontractors or suppliers.
The procuring entity may name in the tender documents the body authorized to provide
the necessary information concerning the obligations to be fulfilled in order to meet the
requirements of the current regulations dealing with safety at work, employment and working
conditions.
In the case referred to in paragraph 8 of this Article, the procuring entity shall request the
bidders or candidates to state explicitly in their bids that they have observed the obligations
resulting from the current regulations dealing with safety at work, employment and working
conditions.
The provisions of this Article shall apply accordingly to natural persons as bidders as
well.
Proof of the Fulfillment of Requirements
Article 45
A bidder shall prove the fulfillment of the requirements referred to in Article 44
paragraph 2 of this Law by delivering the following evidence along with the bid:
1) an excerpt from the register of the competent authority;
2) the bidder's founding act;
3) a certificate of the competent body by which it proves that no measure prohibiting the
performance of activities has been pronounced against it;
4) a certificate of the competent tax authority or a certificate of the competent authority
that the bidder is in the privatization process;
5) a valid license for the performance of the relevant activity, issued by the competent
authority.
A bidder shall prove the fulfillment of the requirements referred to in Article 44
paragraph 2 items 6) and 7) and Article 44 paragraph 5 of this Law by delivering the following
evidence along with the bid:
1) a balance sheet with an opinion of an authorized auditor, or extracts therefrom, or a
statement of the bidder’s overall turnover and income from the products, works or services to
which the public procurement contract relates - for not longer than the previous three financial
years, as well as the opinion or statements of banks or other specialized institutions, or the proof
referred to in the call for competition or tender documents. The procuring entity shall specify in
the call for competition or in tender documents which proof from this item it has chosen and
which other proofs evidencing the financial and economic capacity the bidder shall submit;
2) one or more proofs according to the subject of the contract, the quantity and the
intended purpose, such as:
(а) a list of the most important goods delivered, works performed or services provided
over a period of previous five years for the works, and three years for goods and services,
together with the amounts, dates and lists of purchasers or procuring entities. If purchasers or
procuring entities are entities considered to be the procuring entities for the purposes of this Law,
the proof must be in the form of a certificate issued or signed by the competent authority; if
purchasers or procuring entities are other entities or entrepreneurs, the certificate shall be issued
or signed by such purchaser or such procuring entity;
(b) a description of the bidder’s technical equipment, quality assurance measures and
research and development capacity;
(c) a statement on the key technical staff and other experts working for the bidder who
will be responsible for the contract execution and on the persons responsible for quality control;
(d) a sample description or a photograph of the product and a description of the works
or services that the bidder will perform or provide. In case of doubt, the procuring entity may
demand proof of the authenticity of samples, descriptions or photographs;
(e) a compliance declaration, certificate, accreditation and other results of compliance
assessment according to the standards and related documents for compliance assessment or any
other appropriate instrument by which a bidder proves the compliance of the bid with the
technical specifications or standards requested in the tender documents.
The proof of fulfillment of the requirements referred to in Article 44 of this Law may be
delivered in the form of uncertified copies.
A bidder whose bid was assessed to be the most advantageous shall deliver the original or
a certified copy of the proof of fulfillment of the requirements referred to in Article 44 of this
Law within an adequate time limit defined by the procuring entity, which may not be longer than
three days from the day of receiving the written invitation of the procuring entity,.
The procuring entity shall send the invitation referred to in paragraph 4 of this Article to
the bidder whose bid was assessed to be the most advantageous prior to making the decision on
selection of the most advantageous bid.
If the bidder whose bid was assessed to be the most advantageous fails to deliver the
original or a certified copy of the proof within the time limit referred to in paragraph 4 of this
Article, the procuring entity shall reject its bid as incorrect.
The proof referred to in paragraph 1 item 3) of this Article must be issued after the day of
publication of the call for competition or the day when the invitation to tender was sent.
The proof referred to in paragraph 1 item 4) of this Article may also be issued prior to
publication of the call for competition if no more than six months have passed from the day of its
issuance until the day of publication of the call for competition or until the day of sending the
invitation to tender.
If the bidder’s registered address is in another state, the procuring entity may verify
whether the documents by which the bidder is evidencing the fulfillment of the requested
requirements have been issued by the competent authorities of such state.
The bidder shall notify the procuring entity in writing of any change concerning any of
the information referred to in this Article without any delay and not later than within five days
from the day of such change and document it in the manner prescribed.
Professional References as a Requirement for Participation and Confidentiality of the Data
Obtained
Article 46
If a procuring entity requests the submission of professional references as a requirement
for the participation in the public procurement procedure, it shall specify in the call for
competition or in the invitation to tender and in the tender documents which professional
references the bidders must provide.
The procuring entity shall consistently respect the legitimate interests of bidders,
protecting their technical or trade secrets.
The procuring entity may use the information obtained only for the purpose of the
particular public procurement.
The bidder shall be responsible for the authenticity of the professional references referred
to in paragraph 1 of this Article.
Negative references
Article 47
A procuring entity may reject a bid if it possesses the evidence confirming that the bidder
failed to fulfill its obligations under the previously concluded public procurement contracts that
related to the same subject of procurement, over a period of previous five years for the works,
and three years for goods and services.
The evidence referred to in paragraph 1 of this Article may be the following:
1) a final court decision;
2) a document on an executed instrument for securing the fulfillment of contractual
obligations;
3) a report of the supervising engineer on the works performed;
4) a statement on contract termination due to a failure to fulfill the obligations, given in
the manner and under the conditions stipulated by the law regulating contracts and torts;
5) any other relevant evidence that is of significance for orderly fulfillment of obligations
under the previously concluded public procurement contracts.
The procuring entity shall specify in the tender documents the type of the relevant
evidence referred to in paragraph 2 item 5) of this Article.
Bidder’s Statement
Article 48
If the state where the bidder’s registered address is located does not issue the evidence
referred to in Article 45 of this Law, the bidder may submit its written statement instead, given
under the criminal and material liability, or a statement certified by the authorized body of the
state or republic where his registered address is located, a statement certified by a court or
administrative authority, a notary public or other competent body of that state.
The procuring entity shall verify whether the conditions for the application of paragraph 1
of this Article have been met.
8. Requirements for Subcontractors and Participants in a Joint Bid
Fulfillment of Requirements by Subcontractors
Article 49
In the tender documents, a procuring entity shall request the bidder to state in the bid
whether he will entrust a partial execution of the procurement to a subcontractor.
If the bidder states in the bid that he intends to entrust the partial execution of the
procurement to a subcontractor, he shall state the name of the subcontractor and if the contract is
concluded between the procuring entity and the bidder, the subcontractor shall be named in the
contract.
The bidder shall be fully liable to the procuring entity for the procurement contract
performance irrespective of the number of subcontractors.
The bidder shall allow the procuring entity, upon the latter’s request, access to the
subcontractor for the purpose of establishing the compliance with the requirements.
The bidder shall submit proof of the fulfillment of the requirements referred to in Article
44 paragraph 2 items 1) to 5) of this Law for the subcontractors in the manner stipulated by
Article 45 of this Law.
A bidder shall submit proof of the fulfillment of the other conditions referred to in Article
44 of this Law for the subcontractors in the manner stipulated by the tender documents.
Fulfillment of Requirements in a Joint Bid
Article 50
A bid may be submitted by a group of bidders.
In the case referred to in paragraph 1 of this Article, a procuring entity may not request a
group of bidders to associate themselves into a legal entity so that they may submit a joint bid.
The procuring entity may require a group of bidders to submit a legal act binding them to
execute jointly the procurement contract if the joint bid is assessed as the most advantageous one,
provided that such a request is necessary for successful procurement contract execution.
The legal act referred to in paragraph 3 of this Article shall specify the responsibility of
each bidder for the contract performance.
The bidders forming a group of bidders shall bear unlimited joint liability towards the
procuring entity.
The procuring entity may request legal entities forming a group of bidders to state in their
bids or requests to participate the names and adequate professional qualifications of the persons
who will be responsible for contract execution.
Each bidder from a group of bidders must fulfill the requirements referred to in Article 44
paragraph 2 items 1) to 5) of this Law, which it shall demonstrate by delivering the proof referred
to in Article 45 of this Law, while they jointly fulfill the other requirements referred to in Article
44 of this Law.
9. Criteria for the Selection of the Most Advantageous Bid
Determining the Criteria
Article 51
A procuring entity shall publish in the call for competition and tender documents the
identical criterion and criteria elements for the selection of the most advantageous bid.
The criteria elements on the basis of which a procuring entity will select the most
advantageous bid have to be described and evaluated in the tender documents, must not be
discriminatory and must be logically related to the subject of public procurement.
In the tender documents the procuring entity shall state, describe and evaluate the
criterion and all the criteria elements that it intends to apply, and states in particular the
methodology for weighting point allocation for each criteria element that would enable a
subsequent objective verification of bid evaluation.
The procuring entity shall define in the tender documents the criteria elements based on
which it will perform the selection of the most advantageous bid in a situation where there are
two or more bids with an equal number of weighted points.
When evaluating the bids, the procuring entity shall apply only the criterion and criteria
elements contained in the tender documents, in the manner in which they have been described
and evaluated.
Types of Criteria
Article 52
The criteria for evaluating bids shall be:
1) the economically most advantageous bid or
2) the lowest price offered.
The economically most advantageous bid criterion shall be based on various criteria,
depending on the subject of public procurement, especially including:
1) price offered;
2) payment terms;
3) delivery period or period of completion of services or works;
4) current costs;
5) cost effectiveness;
6) quality;
7) technical and technological advantages;
8) after-sale service and technical assistance;
9) warranty period and the type of warranties;
10) obligations concerning spare parts;
11) post-warranty maintenance;
12) aesthetic and functional characteristics etc.
The participation requirements referred to in Article 44 of this Law may not be defined as
criteria elements.
In the tender documents a procuring entity shall assign relative significance (weight) to
each of the criteria element in such a way that the sum total of weighted points amounts to 100.
The procuring entity shall conduct bid selection based on the economically most
advantageous bid criterion by ranking the bids on the basis of the weighted points assigned to the
criteria elements.
In the case of applying the criterion of the economically most advantageous bid, and in a
situation where there are bids of a domestic and a foreign bidder providing services or performing
works, the procuring entity must select the bid of the most advantageous domestic bidder
provided that the difference in the final sum of weighted points between the most advantageous
bid of the foreign bidder and the most advantageous bid of the domestic bidder is not higher than
20 in favor of the bid of the foreign bidder.
In the case of applying the criterion of the economically most advantageous bid, and in a
situation where there are bids of the bidders offering goods of domestic origin and bids of the
bidders offering goods of foreign origin, the procuring entity must select as the most
advantageous bid the bid of the bidder offering goods of domestic origin provided that the
difference in the final sum of weighted points between the most advantageous bid of the bidder
offering goods of foreign origin and the most advantageous bid of the bidder offering goods of
domestic origin is not higher than 20 in favor of the bid of the bidder offering goods of foreign
origin.
Bid selection based on the lowest price offered criterion shall be based on the lowest price
as the sole criterion.
In the case of applying the criterion of the lowest price offered, and in a situation where
there are bids of a domestic and a foreign bidder providing services or performing works, the
procuring entity must select the bid of the domestic bidder provided that its price offered is not
more than 20 % higher compared to the lowest price offered by the foreign bidder.
In the case of applying the criterion of the lowest price offered, and in a situation where
there are bids of a bidder providing goods of domestic origin and bids of a bidder providing
goods of foreign origin, the procuring entity must select the bid of the bidder providing goods of
domestic origin provided that its price offered is not more than 20 % higher compared to the
lowest price offered by the bidder providing goods of foreign origin.
Provisions of paragraphs 6, 7, 9 and 10 of this Article shall also apply to the public
procurement subdivided in lots.
The priority given to domestic bidders in paragraphs 7, 9 and 10 of this Article in public
procurement procedures in which bidders from the signatories of the Central Europe Free Trade
Agreement (CEFTA 2006) participate shall be implemented in accordance with the provisions of
that agreement.
The Minister in charge of finance activities shall regulate in detail the evidence of
compliance with the requirements referred to in paragraphs 6, 7, 9 and 10 of this Article.
10. Bid in the Public Procurement Procedure
Bid Submission
Article 53
A bidder shall submit its bid directly, by mail or in electronic form in accordance with
Article 54 of this Law.
The bidder may submit only one bid.
The bidder which submitted a bid independently may not participate at the same time in a
joint bid or as a subcontractor.
Within the time limit for bid submission the bidder may amend or cancel its bid in the
manner specified for bid submission.
Submitting Electronic Bid and Conducting Electronic Auction
Article 54
A bidder may submit a bid in electronic form if the procuring entity provides for such a
possibility in the tender documents. Such bid must have the electronic signature protection while
the signature must be certified by the qualification certificate. The electronic bid must have a
time mark.
The information system of the procuring entity must provide a technologically
independent receipt of bids and access to the bids only after the expiry of the time limit for bid
receipt.
The Minister in charge of financial activities shall regulate in detail by a special act the
manner of handling electronic bids and the manner of conducting electronic auction.
Bid Validity
Article 55
Bid validity period shall be stated in the bid and may not be shorter than 60 days from the
bid opening date.
A procuring entity may, in the case of expiry of the bid validity period, request in written
form an extension of the bid validity period from the bidder.
Any bidder who accepts the request for extension of the bid validity period may not alter
the bid.
Bids with Variants
Article 56
If the criterion for selecting the most advantageous bid is the economically most
advantageous bid, a procuring entity shall take into consideration the variants submitted by the
bidders fulfilling the minimum requirements from the procuring entity’s technical specifications.
The procuring entity shall state in the tender documents the minimum technical
requirements that have to be observed in bids with variants.
If bids with variants are not allowed, the procuring entity shall point this out in the call for
competition and in the tender documents.
Abnormally Low Price
Article 57
A procuring entity may reject a bid due to an abnormally low price.
If a bid contains an abnormally low price, the procuring entity shall demand in writing a
detailed explanation of all its constituent elements it considers relevant, in particular those
concerning the economy of the construction method, production or the selected technical solutions
and exceptionally favorable circumstances that are available to the bidder for contract
performance, or pertaining to the originality of the products, services or works proposed by the
bidder.
In the case referred to in paragraph 2 of this Article, the procuring entity shall give the
bidder a reasonable period of time to reply, which may not exceed 20 days from the day of
receipt of such a request.
Having received the requested explanation, the procuring entity shall verify the relevant
constituent elements of the bid referred to in paragraph 2 of this Article.
The procuring entity shall particularly verify the fulfillment of obligations arising from
the current regulations on safety at work, employment and work conditions by the bidder or
candidate if the abnormally low price results from any failure to observe these regulations.
Additional Explanations, Control and Permitted Corrections
Article 58
A procuring entity may request additional explanations from bidders that will help it in
the course of examining, evaluating and comparing bids and it may also conduct control
(inspection) of the bidder or its subcontractor.
The procuring entity may not demand, allow or offer any alterations to the content of a
bid, including any change of price and in particular a procuring entity may not demand, allow or
offer such a change that would turn an inadequate bid into an adequate one.
The procuring entity may, subject to the bidder’s consent, correct only arithmetic errors
observed in the course of examining the bid after the opening of bids.
If the value of the public procurement contract exceeds 300,000,000 dinars, the bidder
shall submit to the procuring entity its bid along with a copy of the bid, in two separate
envelopes.
The bidder shall guarantee that the bid and its copy are identical.
A bid shall be opened according to the provisions of this Law, whereas its copy shall be
forwarded simultaneously and directly to the Republic Commission for the Protection of Rights,
unopened.
If no request for the protection of the bidder’s rights is submitted, the copy deposited with
the Commission shall be returned to the bidder immediately after the expiry of the period for
submitting requests for the protection of rights.
If a bidder lodges a request for the protection of its rights, the copy deposited with the
Commission shall be returned to the bidder immediately after the procedure for the protection of
rights is terminated.
The procuring entity may request a bidder or candidate to submit additional proofs of
fulfilling the requirements within not more than 20 days, but only in the case when the bidder or
candidate has been unable to obtain the requested documents on account of the fact that by the
time of bid submission they could not be issued under the regulations of the state where the
bidder’s or the candidate’s registered address is located.
In the case referred to in paragraph 9 of this Article, the procuring entity shall state which
additional proofs or documents must be submitted.
11. Time Limits in Public Procurement Procedure
Time Limit for Bid Submission
Article 59
A procuring entity shall set a deadline for bid submission in the call for competition and
in the tender documents.
The time limit for bid submission set in the call for competition must be identical to the
time limit set in the tender documents.
Setting the time limit referred to in paragraph 2 of this Article shall mean setting the date
and hour by which bids may be submitted.
After the expiry of the time limit for bid submission, the bidder may not withdraw his bid
or alter it; if it does so or if it does not sign a contract after its bid has been selected, the procuring
entity shall be authorized to cash the guarantee submitted alongside the bid.
Calculation of Time Limits
Article 60
The time limit for bid submission shall be calculated counting from the day of publication
of the call for competition in the “Official Gazette of the Republic of Serbia, or from the day
when the invitation to bid was sent to the bidders.
Timely Bid
Article 61
Any bid received by the procuring entity within the time limit determined for bid
submission shall be considered a timely offer.
Upon the receipt of a bid, the procuring entity shall mark the date and hour of the receipt
and issue to the bidder, upon its request, a certificate of receipt.
If a bid has been submitted after the expiry of the time limit for bid submission, it shall be
considered untimely, and the procuring entity shall return it to the bidder unopened after the
procedure of opening the bids is terminated, with a note stating that it has been submitted in an
untimely manner.
Setting the Time Limit for Bid Submission
Article 62
The time limit for bid submission shall be adequate to the period needed for the
preparation of a correct bid.
If bid preparation requires an examination of extensive tender documents or technical
specifications, or visit to the site and the like, a procuring entity shall envisage the possibility of a
time limit extension.
General Time Limit for Bid Submission in the Open Procedure
Article 63
The time limit for bid submission in the open procedure shall not be shorter than 30 days
from the day of the publication of the call for competition in the “Official Gazette of the Republic
of Serbia”.
Reduced Time Limit for Bid Submission in the Open Procedure
Article 64
The time limit for bid submission in the open procedure may be shorter than the time limit
referred to in Article 63 of this Law, but it shall not be shorter than 22 days from the day of
publication of the call for competition if a procuring entity, in accordance with Article 71 of this
Law:
1) has previously published a periodic indicative notice stating its intention to conduct a
public procurement procedure;
2) has issued the periodic indicative notice at least 30 days and no longer than 12
months before the publication of the call for competition;
3) has included in the periodic indicative notice all information it had at the moment of
sending such notice.
Time Limits for Submission of Applications to Participate in the Restricted Procedure
and in the Negotiated Procedure
Article 65
The time limit for the submission of applications to participate in the restricted procedure
and bids in the negotiated procedure with a prior call for competition shall not be shorter than 25
days from the date of publication of the call for competition in the "Official Gazette of the
Republic of Serbia”.
Setting the General Time Limit for Bid Submission in the Restricted Procedure
Article 66
The time limit for bid submission in the restricted procedure shall not be shorter than 30
days from the date of dispatch of the written invitation by the procuring entity
.
Reduced Time Limit for Bid Submission in the Restricted Procedure
Article 67
The time limit for bid submission in the restricted procedure may be shorter than the time
limit referred to in Article 66 of this Law, but it shall not be shorter than 26 days from the day of
dispatch of the written invitation if a procuring entity:
1) has previously published a periodic indicative notice stating its intention to conduct
a public procurement procedure;
2) has issued a periodic indicative notice at least 30 days and not longer than 12
months before the publication of the call for competition;
3) has included in the periodic indicative notice all the information it had at the time of
sending such notice.
Requirements for Additional Reduction of Time Limits in the Restricted Procedure
Article 68
If in the restricted procedure for reasons of urgency, it is not possible to adhere to the time
limits referred to in Articles 65, 66 and 67 of this Law, a procuring entity may set the following
time limits:
1) the time limit for submitting the application to participate in the procedure shall not be
shorter than 15 days from the date of publishing the call for competition in the "Official Gazette
of the Republic of Serbia”;
2) the time limit for bid submission shall not be shorter than ten days from the date when
the procuring entity sent the written invitation, except in the case of the restricted procedure
based on Article 22 paragraph 3 of this Law when the procuring entity determines the adequate
time limit.
12. Publication of Public Procurement Notices
Method of Notice Publication
Article 69
Public procurement notices shall be published in the "Official Gazette of the Republic of
Serbia" within 15 days from the day of delivering the procuring entity's request for notice
publication, except in the case of conducting the negotiated procedure without publication of the
call for competition referred to in Article 24 paragraph 1 item 4) of this Law, where a contract
award notice shall be published within five days from the day of request delivery.
If value of a contract for goods, services and works exceeds threshold for small-value
contracts determined by the Budget Law, the notices shall be also posted at the Public
Procurement Portal.
Procuring entity may also post notices for low value procurement at the Public
Procurement Portal.
Any public procurement notices shall be published in the Serbian language.
If the value of the public procurement exceeds 150,000,000 dinars for goods and services,
or if it exceeds 300,000,000 dinars for works, the public procurement notices shall be published
in the language commonly used in the international commerce.
Types of Notices
Article 70
The types of notices used shall be:
1) a periodic indicative notice;
2) a call for competition;
3) a contract award notice in accordance with Article 24 paragraph 2;
4) a notice on the public procurement contract concluded;
5) a notice on the termination of the public procurement procedure.
Periodic Indicative Notice
Article 71
For planned public procurements whose approximate value exceeds 50,000,000 dinars, a
procuring entity shall publish, at least once a year, a periodic indicative notice indicating the
intention to initiate a public procurement procedure.
A periodic indicative notice shall be published at least 30 days and maximum 12 months
before publishing the call for competition.
Call for Competition
Article 72
A procuring entity shall publish call for competition inviting bidders or applications for
public procurement in the:
1) open procedure;
2) first phase of restricted procedure;
3) qualification procedure;
4) negotiated procedure with a prior call for competition;
5) contest procedure.
A call for competition referred to in paragraphs 1 items 1), 4) and 5) of this Article shall
contain information on the procuring entity, subject of procurement, participation requirements,
criteria and criteria elements for the selection of the most advantageous bid, time and place for
reviewing the bid documents, conditions for obtaining the bid documents, time and place for bid
submission, time and place for bid opening, time limit for selecting the most advantageous bid, as
well as the name of the contact person providing additional information.
A call for competition referred to in paragraph 1 items 2) of 3) this Article shall contain
information on the procuring entity, subject of procurement, requirements for qualification
recognition, time and place for reviewing the bid documents, conditions for obtaining the bid
documents, time and place for application submission, time limit for adopting a decision on
qualification recognition, as well as the name of the contact person providing additional
information.
A call for competition referred to in paragraphs 2) and 3) of this Article may also contain
other data necessary for providing information to the bidders.
Contents of a Call for Competition in the Second Phase of Restrictive Procedure
Article 73
An invitation to bid in the second stage of the restricted procedure shall contain
information on the procuring entity, subject of procurement, criterion and criteria elements for the
selection of the most advantageous bid, time and place for reviewing the bid documents,
conditions for obtaining the bid documents, time and place for bid submission, time and place for
bid opening, time limit for selecting the most advantageous bid, as well as the procuring entity's
contact address at which additional information will be provided.
The invitation to bid referred to in paragraph 1) of this Article may contain other data
necessary for providing information to the bidders.
Notice on Public Procurement Contract Conclusion
Article 74
A procuring entity shall publish the notice on public procurement contract conclusion in
the “Official Gazette of the Republic of Serbia” within 3 days from the contract conclusion, as
well as post that notice on the Public Procurement Portal within the same time limit.
12. Opening of Bids and Applications
Public Opening of Bids and Applications
Article 75
The opening of bids and applications shall be public.
Exceptionally, a procuring entity may for the purpose of protecting a trade, official,
military or state secret decide not to open the bids and applications in public.
The procuring entity shall state the decision referred to in paragraph 2 of this Article when
publishing the call for competition.
Minutes of Bid Opening
Article 76
A procuring entity shall take the minutes of the bid opening procedure, in which the
following data in particular shall be recorded:
1) bid/application registry number;
2) bidder’s name, or code if the bid is submitted with a design contest;
3) bid price and any discounts offered by the bidder;
4) data from the bid that are defined as criteria elements;
5) shortcomings in the bids.
The procuring entity shall ensure the protection of the bidder’s trade secrets in the course
of procedure.
The provisions of this Article shall apply accordingly to bid opening as well.
The Minister in charge of financial activities shall regulate in detail the bid opening
procedure and prescribe the form for taking the minutes of bid opening.
Delivering the Minutes of Bid Opening
Article 77
A procuring entity shall deliver the minutes of the opening of bids or applications to the
bidders within three days from the day of completion of the procedure of bid or application
opening.
13. Selection of the Most Advantageous Bid
Article 78
Having examined the bids in the public procurement procedure, a procuring entity shall
reject all the incorrect and inadequate bids, and may also reject unacceptable bids.
A procuring entity shall evaluate the bids it has not rejected as unacceptable by applying
the criteria elements and rank them accordingly.
After conducting the evaluation and ranking of the bids the procuring entity shall select
the most advantageous bid.
The procuring entity shall make a decision on the selection of the most advantageous bid
if it has received at least one correct and adequate bid.
Decision on Termination of Public Procurement Procedure
Article 79
A procuring entity shall terminate the public procurement procedure if the requirements
for the selection of the most advantageous bid referred to in Article 78 of this Law or for
compiling a list of candidates referred to in Article 22 paragraph 6 of this Law have not been met.
The procuring entity may terminate the public procurement procedure for objective and
provable reasons which could not have been foreseen at the time of initiating the procedure and
which make it impossible for the initiated procedure to be completed or due to which the need of
the procuring entity for the relevant procurement has ceased, for which reason it will not be
repeated during the same budget year.
The procuring entity shall explain in written form its decision on the termination of the
public procurement procedure, particularly stating the reasons for the procedure termination, and
deliver it to the bidders within three days from the day of making such a decision.
The procuring entity shall deliver the notice of termination of the public procurement
procedure for publication in the "Official Gazette of the Republic of Serbia" and on the Public
Procurement Portal in the manner prescribed by Article 69 of this Law within three days from the
day of making the decision on the termination of the public procurement procedure.
Report on Technical Evaluation of Bids
Article 80
The Public Procurement Committee shall compile a written report on the technical
evaluation of bids.
The report referred to in paragraph 1 of this Article shall contain in particular the
following information:
1) name and address of the procuring entity;
2) subject and value of the public procurement contract;
3) names of the bidders whose bids have been rejected and the reasons for rejection;
4) manner of applying the methodology of weighted point allocation;
5) name of the successful bidder and the reasons for selecting his bid; if the bidder has
stated that the contract will be carried out with the assistance of a subcontractor, each part of the
contract to be executed by the subcontractor shall be specified;
6) if the negotiated procedure has been applied – the circumstances justifying the
application of such procedure.
Decision on Selection of the Most Advantageous Bid
Article 81
Based on the report referred to in Article 80 of this Law, the procuring entity shall make a
decision on the selection of the most advantageous bid within the time limit specified in the
invitation to bid.
The decision on the selection of the most advantageous bid must be justified and must
contain in particular the information referred to in Article 80 of this Law.
A procuring entity shall deliver the decision on the selection of the most advantageous bid
to all the bidders within three days from the day of making such a decision.
Public Procurement Contract
Article 82
A procuring entity shall conclude a public procurement contract with the bidder whose
bid was selected as the most advantageous.
If the bidder whose bid was selected as the most advantageous refuses to conclude the
public procurement contract, the procuring entity may conclude the contract with the second most
advantageous bidder.
The public procurement contract must be concluded in accordance with the most
advantageous bid.
After concluding the contract the procuring entity may allow any change in the price only
for objective reasons, which must be specified in the tender documents or stipulated by special
regulations.
The public procurement contract may not be concluded prior to the expiry of the time
limit for the submission of a request for the protection of rights referred to in Article 107 of this
Law.
III. PUBLIC PROCUREMENT IN THE WATER MANAGEMENT, ENERGY, MINING,
TELECOMMUNICATIONS AND TRANSPORT SECTORS
Procuring Entities
Article 83
Procuring entities of public procurement in the water management, energy, mining,
telecommunications and transport sectors shall be the procuring entities referred to in Article 3 of
this Law and the entities referred to in Article 84 of this Law, when procuring goods, services or
works necessary for the performance of the activities referred to in Article 85 of this Law.
Other provisions of this Law shall apply to the requirements, manner and the procedure of
public procurement which are not specifically regulated in this chapter.
Holders of Special and Exclusive Rights
Article 84
If the Republic of Serbia, a territorial autonomy or local self-government has granted,
through a special law, bylaw or other regulation, special or exclusive rights to perform the
activities referred to in Article 85 of this Law to a person other than the procuring entity referred
to in Article 3 of this Law, the holder of such a right shall be obligated, when procuring goods,
services or works necessary for the performance of such activities, to act like a procuring entity
under the provisions of this Law.
A special or exclusive right within the meaning of the provisions of this Law shall be any
right granted by the Republic of Serbia, a territorial autonomy or local self-government, whose
purpose or consequence is a restriction of the right to perform the activities referred to in Article
85 of this Law to a limited number of entities in the same geographical area.
Subject of Public Procurement
Article 85
The subject of public procurement contracts in the water management, energy, mining,
telecommunications and transport sectors for the purposes of this Law shall be the procurement
of goods, services and works necessary for:
1) construction, maintenance and operation of facilities for the production, transport or
transmission and distribution of potable water, electricity, gas and heat;
2) exploration for or extraction of oil and gas, exploration for or extraction of coal and
other mineral raw materials and other solid fuels;
3) construction, maintenance and utilization of facilities used in air, river and railway
transport, as well as regular urban and suburban passenger transport in road transport that is
performed by trams, trolley-buses and buses.
4) construction, maintenance and utilization of telecommunications networks and
facilities and provision of telecommunication services.
The subject of public procurement in the energy sector shall also be the procurement of
electricity, oil and gas.
A public procurement in the water management and energy sectors for the purposes of
this Law shall not be considered to be any procurement of goods, services and works for:
1) production of potable water or electricity:
(а) if a person other than the procuring entity referred to in Article 3 of this Law pumps
potable water or produces electricity, and the consumption of these goods is necessary for the
performance of this person's activities not specified in paragraph 1 of this Article;
(b) if the supply of a public network depends solely on the personal consumption of a
person other than the procuring entity referred to in Article 3 of this Law and if this consumption
does not exceed 30% of the total production of potable water or electricity on the part of that
person, taking into consideration the average over the last three years, including the current year;
2) production of gas or heat:
(а) if the production of gas or heat by a person other than the procuring entity referred to
in Article 3 of this Law is an unavoidable consequence of the performance of this person's
activities not specified in paragraph 1 of this Article, and
(b) if the supply of a public network is intended solely for the purpose of economic
exploitation of such production and does not exceed 20% of the total annual income of a person
other than the procuring entity referred to in Article 3 of this Law, taking into consideration the
average for the last three years and the current year.
Other Procurements
Article 86
The subject of public procurement in the water management sector shall also be the
procurements connected with:
1) hydraulic engineering projects, irrigation or land drainage, provided that over 20% of
the total quantity of water provided through these projects, by irrigation or land drainage is to be
used as potable water;
2) filtration and drainage of rainwater and waste water.
Contracts in the Water, Energy, Mining, Telecommunications
and Transport Sectors not Subject to this Law
Article 87
The provisions of this law shall not apply to public procurement contracts in the water
management, energy, mining, telecommunications and transport sectors in the following cases:
1) when a procuring entity involved in the construction, maintenance and operation of
telecommunications networks and facilities and provision of telecommunications services
conducts a procurement procedure whose sole purpose is to enable it to provide one or more of
telecommunications services, provided that another person may freely offer its services in the
same geographic area and under the same conditions;
2) when a procuring entity awards a contract for potable water purchase;
3) when a procuring entity that is a rate-based customer concludes an electricity
procurement contract;
4) when a procuring entity transports oil or natural gas, or transmits or distributes
electricity through the systems where only one bidder exists;
5) when a procuring entity responsible for supplying rate-based customers with
electricity, upon the previously obtained approval of the ministry in charge of energy, procures
the missing quantities of electricity determined by the Energy Balance Sheet of the Republic of
Serbia for the purposes of supplying these customers, directly from the electricity producer;
6) design contest that a procuring entity organizes for purposes not specified in Article 85
of this Law;
7) when an economic entity founded by several procuring entities performs procurement
from its founders for the purposes of performing the activities referred to in Article 85 paragraph
1 of this Law;
8) when a procuring entity, as a related entity for the purposes of the law regulating the
corporate income tax, or the law regulating the personal income tax, performs procurement from
an entity to which it is related, provided that in the previous three years the procuring entity
generated at least 80% of the average total revenue for the entity with which it is related.
The provisions of this Law shall not apply to other procurement of goods, services and
works for the purposes of performing the activities referred to in Article 85 of this Law, provided
that the procuring entity does not have exclusive or special rights to the performance of such
activities and that other economic entities may freely perform such activities in the same
geographical area under the same conditions.
Periodic Indicative Notice
Article 88
For planned public procurements referred to in Article 85 of this Law whose approximate
value exceeds 100,000,000 dinars, the procuring entity shall publish, at least once a year, a
periodic indicative notice referred to in Article 70 of this Law.
Qualification Procedure
Article 89
The qualification procedure may be conducted in several qualification phases, and has to
be based on non-discriminatory requirements, established by a procuring entity in advance.
In the decision on recognition of qualifications, a procuring entity shall also set the period
during which the qualifications are recognized to the candidates, which may not be longer than
four years.
During the validity period of the list of candidates formed in the manner stipulated by
paragraph 2 of this Article, the procuring entity shall update it every six months by recognizing
the qualifications to each applicant that meets the requirements referred to in paragraph 1 of this
Article and that has in the meantime submitted an application for the recognition of
qualifications.
The procuring entity may update the requirements referred to in paragraph 1 of this
Article and invite all the candidates to submit applications in accordance with the updated
requirements.
Upon the request of any interested person, the requirements referred to in paragraph 1 of
this Article shall be made accessible, and the procuring entity shall inform the interested parties
of any update.
If the procuring entity believes that its qualifications system meets the requirements of other
procuring entities as well, it shall furnish the names of these procuring entities to the interested
persons.
In the procedure of public procurement in the water management, energy, mining,
telecommunications and transport sectors, the procuring entity may decide to use a list of
candidates of another procuring entity.
The decision on using the list of candidates of another procuring entity shall be made in
written form and must be explained.
Observing the Principle of Reciprocity
Article 90
If a bidder offers products originating from a country with which Republic of Serbia has
not concluded an agreement that would enable domestic bidders to have equal access to the
market of that country, such a bid may be rejected if more than 50% of the products offered in the
bid originate from such country.
The origin of products shall be established in accordance with the relevant regulations.
Termination of Public Procurement Procedure
Article 91
Having obtained the opinion of the Ministry in charge of foreign economic relations, the
Government may temporarily terminate the procedure of public procurement of services:
1) to bidders with the registered address in the country with which Republic of Serbia has
not concluded an agreement on equal treatment of domestic and foreign bidders;
2) to bidders which are related parties with the bidders referred to in item 1) of this Article
and have the registered address in the country with which the Republic of Serbia has concluded
an agreement on equal treatment of domestic and foreign bidders, but which do not have direct
and effective links with the economy of the Republic of Serbia;
3) to bidders which have submitted bids offering services from a country with which the
Republic of Serbia has not concluded an agreement on equal treatment of domestic and foreign
bidders.
Selection among Equal Bids
Article 92
If two or more bids are equal on the basis of the criteria stipulated in Article 52 of this
Law, a procuring entity shall give priority to the bids:
1) whose selection cannot be terminated on the basis of the Article 91 of this Law;
2) whose selection would not mean that the procuring entity would have to procure
materials whose technical characteristics are different from those of the existing materials.
For the purposes of paragraph 1 of this Article, those bids whose prices do not differ by
more that 3% shall be considered as equal.
IV. PUBLIC PROCUREMENT RECORDS
Keeping Records
Article 93
A procuring entity shall collect and keep records of certain data concerning public
procurement procedures and awarded public procurement contracts.
The procuring entity shall keep separate records of low-value public procurements.
Report on Concluded Contracts
Article 94
The report on concluded public procurement contracts shall contain the information on
the procuring entity, procedure and subject of the public procurement, value of the public
procurement, bidder with which the public procurement contract was concluded, received bids
and the public procurement advert.
The report on concluded public procurement contracts of low value shall contain the
information on the procuring entity, the total number of the concluded contracts and the total
value of the concluded contracts.
The report on public procurement procedures shall contain the information on the number
of successfully conducted, terminated and cancelled procedures, reasons for procedure
termination and cancellation, separately for public procurement and low-value public
procurement.
A procuring entity shall deliver to the Public Procurement Office in a calendar year a
quarterly report on concluded public procurement contracts and public procurement procedures,
by the 10th day of the month following the quarter end at the latest.
The Public Procurement Office shall prepare a summary of reports on concluded public
procurement contracts on the basis of the delivered quarterly reports of procuring entities and
post it on the Public Procurement Portal.
The Minister in charge of financial activities shall regulate in detail the manner of keeping
the public procurement records and prescribe the content of the reports referred to in paragraphs
1, 2 and 3 of this Article.
Additional Information
Article 95
The Public Procurement Office may request from any procuring entity a report on any
individual public procurement contract or public procurement procedure with additional
information, if it is necessary for the purpose of keeping public procurement data records.
The procuring entity shall deliver the requested information to the Public Procurement
Office without undue delay, and not later than three days after the request of the Public
Procurement Office.
Cumulative Public Procurement Report
Article 96
The Public Procurement Office shall prepare a cumulative annual public procurement
report on the basis of the individual, quarterly reports of procuring entities referred to in Article
94 of this Law.
The Public Procurement Office shall submit the cumulative annual public procurement
report to the Government by 31 March of the current year for the previous year at the latest.
V. PUBLIC PROCUREMENT ACTIVITIES
Public Procurement Officer
Article 97
A procuring entity shall define, by its bylaw by which it regulates the job classification, a
post which would perform public procurement activities as well.
A Public Procurement Officer shall be a person employed on a full-time basis with the
procuring entity who is trained for the performance of public procurement activities and who has
acquired an appropriate certificate of this.
The Minister in charge of financial activities shall prescribe the procedure of issuing the
certificate referred to in paragraph 2 of this Article and specify:
1) which procuring entities shall appoint a Public Procurement Officer;
2) which activities the Public Procurement Officer shall perform;
3) a common public procurement officer training program;
4) the conditions the instructors conducting the public procurement officer training must
meet;
5) the conditions for acquiring a public procurement officer certificate.
The procuring entity may appoint several Public Procurement Officers if necessary.
Public procurement officer certificates shall be issued by the Public Procurement Office,
of which it shall keep an appropriate register.
The procuring entity shall enable the person employed for the purpose of performing
public procurement activities to acquire a public procurement officer certificate within three
months from the day of employment.
VI. PUBLIC PROCUREMENT OFFICE
Manner of Establishment
Article 98
Public Procurement Office is a special organization for performing technical activities in
the area of public procurement, providing conditions for economic, efficient and transparent use
of public funds for public procurement and promotion of competition and equality of bidders in
the public procurement procedure.
The regulations pertaining to the government administration shall apply to the activity and
organization of the Public Procurement Office.
Activities
Article 99
The Public Procurement Office shall perform activities that relate to:
1) the participation in drafting the regulations pertaining to the sphere of public
procurement;
2) providing consulting services to procuring entities and bidders;
3) monitoring public procurement procedures;
4) submission of requests for the protection of rights in the case of violation of public
interest;
5) informing the body in charge of public fund auditing, budget inspection and other
bodies competent for the initiation of offence proceedings on irregularities in conducting public
procurement procedures and delivering public procurement reports that it has identified in the
course of performance of the activities within its competence;
6) issuance of certificates to public procurement officers, as well as keeping the register of
the public procurement officers who have been issued certificates;
7) publication and distribution of relevant technical literature;
8) preparation of model decisions and other acts the procuring entity adopts in public
procurement procedures;
9) collection of information on public procurement in other states;
10) collection of statistical and other data on the procedures conducted, public
procurement contracts concluded and on the efficiency of the public procurement system as a
whole;
11) formation and maintenance of the Public Procurement Portal for the purpose of
improving general information provision to procuring entities and bidders;
12) cooperation with foreign institutions and experts in the field of public procurement;
13) cooperation with other government bodies and organizations, compulsory social
insurance organizations, as well as bodies of a territorial autonomy and local government;
14) other activities according to the law.
The Public Procurement Office shall submit to the Government a public procurement
report in the previous year, including a proposal for measures to be undertaken, by 31 May of the
current year.
VII. PROTECTION OF BIDDERS' RIGHTS AND PUBLIC INTEREST
Republic Commission for the Protection of Rights in Public Procurement Procedures
Article 100
The Republic Commission for the Protection of Rights in Public Procurement Procedures
(hereinafter: the Republic Commission) shall be established as an autonomous and independent
body of the Republic of Serbia, which shall ensure the protection of bidders' rights and public
interest in public procurement procedures.
The Republic Commission shall have the status of a legal entity.
The seat of the Republic Commission shall be in Belgrade.
The Republic Commission shall have a seal in accordance with the law.
The funds for the operation of the Republic Commission shall be provided in the budget
of the Republic of Serbia.
The Republic Commission shall be responsible for its work to the National Assembly.
Competence
Article 101
Within its competences the Republic Commission shall:
1) decide on requests for the protection of bidders' rights and public interest (hereinafter:
request for the protection of rights);
2) decide on appeals lodged against the procuring entity's conclusions;
3) decide on the procuring entity's proposal that the submitted request for the protection of
rights should not stay the activities in public procurement procedure;
4) decide on the expenses of the rights protection procedure;
5) monitor the implementation of decisions adopted by it;
6) cooperate with foreign institutions and experts in the field of public procurement;
7) also perform other activities in accordance with the law.
Composition and Election of the Republic Commission
Article 102
The Chairman and members of the Republic Commission shall be elected and dismissed
by the National Assembly upon the Government proposal.
The Chairman and members of the Republic Commission shall be elected for a five-year
period. The same person may be elected Chairman or member of the Republic Commission not
more than twice.
The Government shall initiate a procedure for determining a proposal for the election of
Chairman or member of the Republic Commission not later than three months prior to the expiry
of their term of office. The election procedure shall be completed not later than one month prior
to the expiry of the term of office of the Chairman and members of the Republic Commission.
The Chairman and members of the Republic Commission may not perform any other
public function in accordance with the law regulating the conflict of interest, may not hold any
office in a political party nor hold or perform any other office, post, job, duty or activity that
could affect their independence in the work and actions or that would diminish their reputation or
the reputation of the office of member or Chairman of the Republic Commission.
Any person meeting the conditions necessary for the election as a municipal court judge
and having a three-year work experience in the field of public procurement may be elected
Chairman of the Republic Commission. The Chairman of the Republic Commission shall have a
salary equal to the salary of the Chairman of a standing working body of the National Assembly.
Any person who is a graduate lawyer with a two-year work experience in the field of
public procurement or a seven-year work experience in the profession may be elected member of
the Republic Commission. Members of the Republic Commission shall have a salary equal to the
salary of a Member of Parliament employed full-time in the National Assembly.
The Republic Commission shall be represented by the Chairman of the Republic
Commission, who shall manage its operation.
In the absence of the Chairman of the Republic Commission, the Republic Commission
shall be represented by the Deputy Chairman of the Republic Commission, who shall be elected
from among the members and dismissed by the Republic Commission upon the proposal of the
Chairman of the Republic Commission.
Dismissal of the Chairman and members of the Republic Commission
Article 103
The Chairman or any member of the Republic Commission shall be dismissed before the
expiry of the term of office if:
1) he/she has been convicted of a criminal offence to an effective sentence of at least six
months of imprisonment or if he/she has been convicted of a punishable offence which makes
him/her unfit for holding office;
2) it has been established based on the findings and opinion of the competent medical
institution that, due to a deteriorated state of health, he/she has permanently lost the work
capacity for holding office;
3) it has been established that he/she holds office in contravention of Article 102
paragraph 5 of this Law;
4) it has been established that he/she performs his/her duties in an unprofessional and
negligent manner.
The Government shall submit to the National Assembly a justified proposal for dismissal
of the Chairman or a member of the Republic Commission along with the evidence for his/her
dismissal.
The Chairman or a member of the Republic Commission must be given an opportunity to
give his/her statement in the National Assembly regarding the reasons for his/her dismissal.
In the case of proposal for dismissal of the Chairman or a member of the Republic
Commission before the expiry of their term of office, the Government shall submit to the
National Assembly a proposal for the election of a new Chairman or member of the Republic
Commission simultaneously with the proposal for dismissal.
Service of the Republic Commission
Article 104
The Republic Commission shall have a Service that shall perform professional, generallegal,
financial-material and administrative-technical activities necessary for the operation of the
Republic Commission. The Service shall be managed by the Secretary, who shall be elected from
among the employees and dismissed by the Republic Commission upon the proposal of the
Chairman of the Republic Commission.
The regulations regulating labor relations in government bodies shall apply to the
Secretary and employees in the Service.
Internal organization and job classification in the Service shall be regulated in detail by
the Regulation passed by the Chairman of the Republic Commission upon the proposal of the
Service Secretary.
The Regulation referred to in paragraph 3 of this Article must be approved by the
Committee of National Assembly in charge of Finance.
Manner of Operation of the Republic Commission
Article 105
The Republic Commission shall make decisions at the meetings chaired by the Chairman
of the Republic Commission or a member authorized by him/her.
Presence of a majority of the total number of members of the Republic Commission shall
be necessary for valid decision-making at the meeting.
Decisions at the meeting shall be made by a majority of votes of the total number of
members of the Republic Commission.
The manner of operation of the Republic Commission shall be regulated by the Rules of
Procedure of the Republic Commission, which shall be published in the "Official Gazette of the
Republic of Serbia".
The provisions of the law regulating administrative procedure shall apply accordingly to
the issues of the rights protection procedure not regulated by this Law.
Legal Capacity in the Procedure
Article 106
A request for the protection of rights may be submitted by any person having an interest
to conclude a contract on the particular public procurement (hereinafter: the claimant).
A request for the protection of rights in the case of violation of public interest may be
submitted by the Public Procurement Office, a public attorney and a government body or
organization authorized to perform supervision over the procuring entity's business activities.
The claimant referred to in paragraph 1 of this Article shall have no right to demand from
the body or organization referred to in paragraph 2 of this Article to submit a request if it has not
used its right to submission of request for the protection of rights.
The provisions of this Law applying in the case of submission of request by a claimant
referred to in paragraph 1 of this Article, except for the provision of Article 116 paragraph 1 of
this Law, shall apply accordingly in the case of submission of request for the protection of rights
referred to in paragraph 2 of this Article.
Time Limits and Manner of Submission of Request for the Protection of Rights
Article 107
A request for the protection of the bidders’ rights shall be submitted to the procuring
entity.
A request for the protection of rights may be submitted during the whole public
procurement procedure against any action of the procuring entity, unless otherwise specified by
this Law.
A request for the protection of rights by which the content of a call for competition or
tender documents is disputed shall be considered timely if received by the procuring entity before
the expiry of the time limit for the submission of bids, regardless of the manner of delivery.
After the making of the procuring entity's decision referred to in Articles 22, 79 and 81 of
this Law, the time limit for the submission of request for the protection of rights shall be eight
days from the decision receipt date.
In the case of publishing the notice referred to in Article 24 paragraph 2 of this Law, the
time limit for the submission of request for the protection of rights shall be eight days from the
day of publishing the notice in the "Official Gazette of the Republic of Serbia".
No actions of the procuring entity taken in the public procurement procedure may be
disputed by a request for the protection of rights if the claimant knew or could have known the
reasons for its submission before the expiry of the time limit for the submission of bids or
applications, but the claimant failed to submit it before the expiry of that time limit.
If the request for the protection was submitted again in the same public procurement
procedure by the same claimant, no actions of the procuring entity the claimant knew or could
have known when submitting the previous request may be disputed in that request.
A request for the protection of rights shall be submitted to the procuring entity directly or
by registered mail with a delivery note.
The claimant shall simultaneously submit a copy of the request for the protection of rights
to the Republic Commission.
The procuring entity shall inform all participants in the public procurement procedure of
the submitted request for the protection of rights no later than three days from the day of
receiving the request for the protection of rights.
The provisions of paragraphs 3 and 4 of this Article shall not apply in the negotiated
procedure without a prior call for competition if the claimant has not been allowed to participate
in this procedure.
Consequences of Submitted Request for the Protection of Rights
Article 108
A request for the protection of rights shall delay further activities of the procuring entity
in the public procurement procedure until a decision on the submitted request for the protection
of rights has been made unless otherwise decided by the Republic Commission upon the proposal
of the procuring entity.
The Republic Commission shall make the decision referred to in paragraph 1 of this
Article in the case where the interest of the Republic of Serbia would be significantly endangered
by delaying the activities of the procuring entity in the public procurement procedure.
If the Republic Commission accepts the proposal referred to in paragraph 1 of this Article,
the procuring entity shall inform all participants in the procedure accordingly.
Content of Request for the Protection of Rights
Article 109
A request for the protection of rights includes:
1) name and address of the claimant and contact person;
2) name and address of the procuring entity;
3) information on the public procurement that is the subject of the request or on the
decision of the procuring entity;
4) violations of the regulations regulating public procurement procedure;
5) facts and evidence by which the violations are proved;
6) certificate of payment of the tax referred to in Article 116 paragraph 1 of this Law;
7) the claimant's signature.
If the procuring entity estimates that the request for the protection of the bidders’ rights
submitted does not contain all the information referred to in paragraph 1 of this Article, the
procuring entity shall invite without delay the claimant to present additional information within
three days.
If the claimant fails to act within the time limit referred to in paragraph 2 of this Article or
fails to supplement the request in accordance with the request for supplementation, the procuring
entity shall reject such request by a conclusion.
The claimant may submit an appeal to the Republic Commission against the conclusion of
the procuring entity referred to in paragraph 3 of this Article within three days from the day of
conclusion receipt, while it shall simultaneously deliver a copy of the appeal to the procuring
entity.
Prior Verification of a Request for the Protection of Rights
Article 110
Upon receipt of a request for the protection of rights, the procuring entity shall verify
whether the request has been submitted within the time limit and whether it was lodged by an
authorized person.
If the request for the protection of rights is untimely or submitted by a person not having a
legal capacity, the procuring entity shall reject such request by a conclusion.
The claimant may submit an appeal to the Republic Commission against the conclusion
referred to in paragraph 2 of this Article within three days from the day of receiving that
conclusion, while it shall simultaneously deliver a copy of the appeal to the procuring entity.
Decision of Procuring Entity on a Request for the Protection of Rights
Article 111
After a preliminary examination the procuring entity shall decide on a request for the
protection of rights by a resolution by:
1) accepting the request and canceling the public procurement procedure wholly or partly
if the request is well-founded;
2) rejecting the request for the protection of rights as unfounded.
After receiving the written notice on withdrawal of the request for the protection of rights,
the procuring entity shall terminate the rights protection procedure by a conclusion.
The procuring entity shall adopt the resolution with an explanation referred to in
paragraph 1 of this Article and deliver it to the claimant within ten days from the day of receiving
the orderly request for the protection of rights.
If the resolution of the procuring entity was not delivered to the claimant within the time
limit referred to in paragraph 3 of this Article, the claimant may continue the procedure before
the Republic Commission by giving a written statement within the following three days, of which
it shall simultaneously inform the procuring entity.
If the claimant does not continue the procedure within the time limit referred to in
paragraph 4 of this Article, it shall be deemed that the protection procedure has not been initiated
at all.
Continuation of Procedure After Adoption of the Decision of the Procuring Entity
Article 112
The resolution referred to in Article 111 paragraph 1 item 2) of this Law shall also contain
an invitation to the claimant to give a written statement not later than three days from the day of
resolution receipt whether it will continue the procedure before the Republic Commission as well
as a notice of the consequences of missing the time limit for giving statement.
The claimant shall deliver a copy of the written statement on the continuation of the
procedure to the Republic Commission.
After the receipt of the claimant's written statement on the continuation of the procedure
before the Republic Commission, the procuring entity shall deliver all documents to the Republic
Commission within the next three days.
If the claimant delivers the written statement after the expiry of the time limit referred to
in paragraph 1 of this Article, the procuring entity shall make a conclusion on rejection of the
statement.
The claimant may lodge an appeal to the Republic Commission against the conclusion
referred to in paragraph 4 of this Article within three days from the day of receiving this
conclusion, and it shall simultaneously deliver a copy of the appeal to the procuring entity.
Continuation of Procedure Before the Republic Commission
Article 113
The Republic Commission shall decide on the submitted request for the protection of
rights based on the receipt of the claimant's written statement on the continuation of the
procedure.
The Republic Commission shall decide within the scope of the submitted request for the
protection of rights as well as on the violations which the claimant did not know and could not
know about and which had an impact on the decision of the procuring entity in the public
procurement procedure.
The Republic Commission shall present the evidence which it assesses as having an
impact on making a correct and lawful decision on the submitted request for the protection of
rights.
Time Limit for Decision Adoption and Delivery
Article 114
The Republic Commission shall decide on the request for the protection of rights by a
resolution within 15 days from the day of receiving the complete documentation.
The Republic Commission shall decide on the appeal against the conclusion of the
procuring entity within eight days from the day of receiving the necessary documentation.
The time limit referred to in paragraph 1 of this Article may be extended for maximum 20
days in particularly justified cases, of which the claimant and the procuring entity shall be
informed.
The Republic Commission shall deliver the resolution referred to in paragraph 1 of this
Article or the decision referred to in paragraph 2 of this Article to the procuring entity, the
claimant and the selected bidder if the request for the protection of rights was submitted after the
adoption of the decision on selection of the most advantageous bid, within ten days from the day
of making the resolution or decision.
Information Collection and Court Expert's Examination
Article 115
If the Republic Commission establishes that a request for the protection of rights does not
contain all the required information referred to in Article 109 paragraph 1 of this Law it shall
invite the claimant to supplement the request.
The time limit for supplementing the request for the protection of rights shall be three
days from the day the claimant received the supplementation request.
Prior to making its decision, the Republic Commission may request additional
explanations from the procuring entity, the claimant or other participants in the procedure,
opinion of experts or court experts and review other documents held by the parties in public
procurement procedure as well as collect other information for making the decision.
The Republic Commission may request information and opinions that are necessary for
the performance of its activities from other persons as well.
Any persons referred to in paragraphs 3 and 4 of this Article shall act within the time limit
set by the Republic Commission in the request for obtaining the information or opinions.
The request for obtaining information or opinion must be justified.
Procedure Expenses
Article 116
A claimant shall pay a tax in the amount of RSD 60,000.00 to a specific account of the
budget of the Republic of Serbia, or RSD 30,000.00 if it is a case of a low-value public
procurement.
Each party to the procedure shall bear the expenses incurred through its actions.
If the request for the protection of rights is well-founded, the procuring entity must
compensate the expenses incurred on the basis of rights protection to the claimant upon its
written request.
If the request for the protection of rights is not well-founded, the claimant must
compensate the expenses incurred on the basis of rights protection to the procuring entity upon its
written request.
The parties must precisely state in the request the expenses whose compensation they
request.
Compensation of expenses may be requested until the making of a decision of the
procuring entity or the Republic Commission on the submitted request for the protection of
rights.
The expenses shall be decided on by the Republic Commission. The decision of the
Republic Commission shall be final.
Decision of the Republic Commission
Article 117
By its conclusion, the Republic Commission shall:
1) reject a request for the protection of rights or statement on the continuation of
procedure before the Republic Commission in the case where the request for the protection of
rights or the statement has been submitted in an untimely manner, if it has been submitted by a
person not having a legal capacity or if the claimant failed to supplement the request within the
given time limit or failed to supplement it in accordance with the invitation for request
supplementation referred to in Article 108 of this Law;
2) terminate the procedure on the basis of receiving a written notice on withdrawal of the
request for the protection of rights prior to the making of the decision;
3) reject the appeal as inadmissible, untimely or lodged by an unauthorized person.
By its resolution, the Republic Commission shall:
1) accept the request for the protection of rights and cancel the public procurement
procedure wholly or partly if the request for the protection of rights is well-founded;
2) reject the request for the protection of rights as unfounded;
3) confirm the conclusion of the procuring entity or cancel the conclusion of the procuring
entity and order further actions of the procuring entity in connection with the content of the
request for the protection of rights referred to in Article 109 paragraph 1 of this Law or in
connection with the preliminary examination of the request for the protection of rights referred to
in Article 110 of this Law or in connection with the continuation of procedure after making the
decision of the procuring entity referred to in Article 111 of this Law.
The Republic Commission shall explain its decision and order the procuring entity to take
certain actions for the purpose of correct and lawful completion of the relevant public
procurement procedure.
The decision of the Republic Commission shall be delivered within the time limit referred
to in Article 114 paragraph 4 to the procuring entity, the claimant as well as the selected bidder if
the request for the protection of rights was submitted after making the decision on selection of the
most advantageous bid.
After its delivery to the parties in the procedure, the decision of the Republic Commission
shall be delivered to the Public Procurement Office for publication on the Public Procurement
Portal.
The procuring entity shall inform all participants in the procedure of the decision made by
the Republic Commission.
Article 118
The procuring entity shall act upon the orders of the Republic Commission contained in
the decision no later than 30 days from the decision receipt date.
The Republic Commission may request from the procuring entity to submit a report and
documentation on conducting the public procurement procedure in which the request for the
protection of rights was submitted or a report and documentation on the repeated procedure.
The procuring entity shall submit the report and documentation referred to in the previous
paragraph within the time limit that is set by the Republic Commission and that may not be
longer than six months from the date of receiving the decision of the Republic Commission.
If the Republic Commission establishes on the basis of the report and documentation that
the irregularities have not been eliminated or that the instructions of the Republic Commission
have not been observed or if the procuring entity fails to submit the report and documentation
within the set time limit it shall inform of this the body competent for public funds auditing, the
budget inspection, the National Assembly and the Government.
No appeal may be lodged against the decision of the Republic Commission.
An administrative dispute may be initiated against the decision of the Republic
Commission.
An administrative dispute may also be initiated when the Republic Commission failed do
make and deliver the decision within the time limits specified by Article 114 of this Law.
VIII SUPERVISION
Article 119
Supervision over the implementation of this Law shall be performed by the Ministry in
charge of financial activities.
IX. ANNUMENT OF CONTRACTS
Annulment
Article 120
Public procurement contracts shall be deemed as annulled and void:
1) if they have been concluded in contravention of the provisions of this Law regulating
the manner and the procedure of awarding public procurement contracts;
2) if a procuring entity has acted in contravention of the provisions on determining the
value of public procurement per lot;
3) if they have been concluded in order to settle rights and liabilities, without applying
the public procurement procedure;
4) if a procuring entity has selected the most advantageous bid under conditions other
than those prescribed by this Law or concluded a contact with a bidder whose bid was not
selected as the most advantageous one;
5) if a procuring entity authorizes a third person, who is not the procuring entity for the
purposes of this Law, to conduct the public procurement procedure so as to avoid the application
of this Law;
6) if the amendments to the original contract have been effected in contravention of the
provisions of this Law;
7) if they have been concluded in contravention of the Republic Commission’s
decision, and
8) if they have been concluded without a prior public procurement procedure, which
the procuring entity was obligated to apply according to the provisions of this Law.


X. PENAL PROVISIONS
Offenses
Article 121
A procuring entity shall be fined 100,000 to 1,000,000 dinars:
1) ) if it fails to provide to the bidder access to the information on the conducted public procurement procedure (Article 10);
2) if it concludes a contact in violation of the principle of the equality of bidders (Article 11);
3) if it does not protect the data contained in the bid documents, according to the degree
of confidentiality (Articles 12 and 13);
4) if it does not keep records or keep the documentation of public procurement (Article14);
5) if it does not adhere to the prescribed language in the preparation of tender
documentation and conduct of the proceedings (Article 15);
6) if it concludes a public procurement contract without prior implementation of the
procedure prescribed by this Law (Article 20);
7) if it commences the public procurement procedure before the prescribed conditions are
met (Article 27);
8) if it commences the public procurement procedure before adopting decision to initiate
the procedure and decision on the formation of the public procurement committee (Article 28);
9) if it fails to forward the tender documents to everyone requesting them, in accordance
with the call for competition, or charges for them more than the costs of copying and sending
(Articles 31 and 32);
10) if the subject of a contract, contract requirements, technical specifications or other
elements of the tender documents are adjusted to a specific bidder, or if the bid of a bidder who
has participated in the preparation of the tender documents or part thereof is not rejected (Articles
9 and 39);
11) if it fails to observe the current technical norms, standards and other technical
regulations while preparing the tender documents (Articles 38-43);
12) if it sets the requirements and criteria for participation that are not in conformity with
this Law, or if it alters the requirements and criteria after the publication of a call for competition
without notifying the bidders (Article 32 and Articles 44-52);
13) if it fails to observe the time limits for publishing the call for competition and bid
submission (Articles 59-68);
14) if it fails to publish the prescribed adverts referred to in Article 70 of this Law in the
"Official Gazette of the Republic of Serbia” and on the Public Procurement Portal, in the manner
prescribed by Article 69 of this Law, or if it sends them to be published in other media without
having sent them to the “Official Gazette of the Republic of Serbia” for publication (Article 70);
15) if the minutes of bid opening do not contain all prescribed data (Article 76);
16) if it fails to forward the information on conducted public procurement procedures to
the Public Procurement Office (Articles 94 and 95);
17) if it fails to define by its internal document the post for the performance of public
procurement activities referred to in Article 97 paragraph 1 of this Law;
18) if it fails to enable an employee to acquire a public procurement officer certificate
within the time limit referred to in Article 97 paragraph 6 of this Law.
19) if it concludes a public procurement contract prior to the expiry of the time limit for
submission of requests for the protection of rights referred to in Article 107 paragraphs 4 and 5 of
this Law;
20) if it acts in contravention of the provision of Article 108 paragraph 1 of this Law on
staying the procedure in the case of a request for the protection of rights being submitted;
21) if it does not forward the documents referred to in Article 112 paragraph 3 of this
Law;
22) if it does not notify all the participants in process about decision adopted by Republic
Commission (Article 117)
23) if it fails to act upon the orders of the Republic Commission within the time limit
referred to in Article 118 of this Law;
24) if it fails to enable the employee performing public procurement activities to acquire a
public procurement officer certificate within the time limit referred to in Article 126 paragraph 7
of this Law.
The responsible person of the procuring entity shall also be fined 20,000 to 50,000 dinars
for a violation referred to in paragraph 1 of this Article.
Article 122
A bidder shall be fined 100,000 to 1,000,000 dinars:
1) if it fails to notify the procuring entity of alterations to the data (Article 45 paragraph 10);
2) if it supplies false information concerning professional references (Article 46);
3) if it supplies false information in the documents proving the compliance with the requirements (Articles 45 and 48).
The responsible person of the bidder shall also be fined 20,000 to 50,000 dinars for a
violation referred to in paragraph 1 of this Article.
A natural person acting as a bidder shall also be fined 20,000 to 50,000 dinars for the
violation referred to in paragraph 1 of this Article.


XI. TRANSITIONAL AND FINAL PROVISIONS
Article 123
Public procurement procedures initiated before this Law enters into force shall be
governed by the regulations that were in effect when they were commenced.
Article 124
The procedures of the protection of rights initiated before this Law enters into force shall
be governed by the regulations that were in effect when they were commenced.
Article 125
As of the day of this Law coming into effect the Public Procurement Office shall continue
its operation in accordance with its competence defined by this Law.
As of the day of this Law coming into effect the Commission for the Protection of Rights
shall continue its operation until the start of the operation of the Republic Commission.
The Republic Commission shall be elected within six months from the day this Law
comes into effect.
As of the day of the beginning of its operation the Republic Commission shall take over
the civil servants employed in the Department for the Affairs of the Commission for the
Protection of Rights within the Public Procurement Office, as well as the rights and obligations,
cases, equipment, supplies and archives necessary for exercising the authority within its
competence.
Article 126
As of the day of this Law coming into effect, the Public Procurement Law ("Official
Gazette of the RS" nos. 39/02, 43/03, 55/04 and 101/05) shall cease to apply except the
provisions of Articles 123, 124 and 125 of that Law, which shall apply until the day of the
adoption of the secondary regulation referred to in Article 26 paragraph 3 of this Law.
The secondary regulations that are passed based on the authorizations referred to in this
Law shall be passed within six months from the day this Law comes into effect except the
secondary regulation referred to in Article 54 paragraph 3 of this Law.
The secondary regulations passed based on the Public Procurement Law ("Official
Gazette of the RS" nos. 39/02, 43/03, 55/04 and 101/05) shall apply until the secondary
regulations based on the authorizations referred to in this Law come into effect, except the
provisions that are in contravention of this Law.
The provisions of Article 54 paragraphs 1 and 2 of this Law shall apply as of the day of
passing of the secondary regulation referred to in paragraph 3 of that Article.
After the Stabilization and Association Agreement concluded between the European
Communities and their member states, on the one side, and the Republic of Serbia, on the other
side, comes into effect, the advantage given to domestic bidders in Article 52 paragraphs 6, 7, 9
and 10 of this Law shall become an advantage expressed in the price and shall gradually decrease
over a five-year period in accordance with the schedule specified in that Agreement.
The provisions of Article 97 of this Law shall apply after the expiry of six months from
the day this Law comes into effect.
The procuring entity shall enable the employee performing public procurement activities
to acquire a public procurement officer certificate within three months from the day of
application of the provision of Article 97 of this Law.
Article 127
This Law shall come into effect on the 15th day from the day of its publication in the
"Official Gazette of the Republic of Serbia”.

АNNEX IА
Services
Category no. Subject
1 maintenance and repair services
2 land transport services (except for railway transport services), including transport
in armored vehicles and courier services (other than postal transport)
3 air transport services of passengers and cargos (other than postal transport)
4 land and air postal transport (other than railway transport services)
5 telecommunication services (other than voice telephony, telex, radio telephony,
paging, internet and satellite services)
and satellite services)
6 financial services:
- insurance services,
- banking and investment services (other than the procurement of financial services
in connection with issuing, sale, purchase or transfer of securities or other financial
instruments, and the services of the National Bank of Serbia)
7 computer services
8 research and development services (other than the procurement of research and
development services where the research results are not used solely by a procuring
entity for its own needs, provided that the procuring entity bears the full costs of
such services)
9 accounting, auditing and bookkeeping services
10 market research services and public opinion surveys
11 management consulting services (other than arbitrage, settlement and related
services)
12 architectural, engineering, urban planning and landscape architecture services;
technical testing and analyses
13 advertising services
14 building cleaning and real estate management services
15 publishing and printing services on a part-time or contractual basis
16 waste removal, sanitary and other related services


ANNEX IB
Services
Category
no. Subject
17 hotel and restaurant services
18 railway transport services
19 river transport services
20 additional and auxiliary transport services
21 legal services
22 personnel recruitment services
23 investigative and security services (other than transport in armored vehicles)
24 education and vocational training services
25 health care and social services
26 recreational, cultural and sports services
27 other services


ANNEX II
Construction works
Class Group Subgroup
Description
50 BUILDINGS AND CIVIL ENGINEERING
500 General construction and civil engineering works (without
special specifications) and demolition
500. 1. General construction and civil engineering works (without
special specifications)
500.2. Demolition
501 Construction of objects and parts thereof
501.1. General construction works
501.2. Construction of eaves and roofs
501.3. Construction of chimneys, furnaces and fireplaces
501.4. Protection against water and damp
501.5. Renovation and maintenance of external walls (refilling brick
contacts with mortar, cleaning, etc.)
501.6. Erecting and dismantling scaffolding
501.7. Other specialized activities in connection with construction
works, including carpentry
502 Civil engineering: building roads, bridges, railways, etc.
502.1. General civil engineering works
502.2. Earthworks
502.3. Building bridges, tunnels and shafts; drilling
502.4. Hydraulic engineering and water management (rivers, channels,
ports, inflows, dams, etc.)
502.5. Building roads, railway lines, airports and sports facilities
502.6.
Specialized civil engineering works connected with water
(irrigation, drainage, water supply, waste water removal,
sewage, etc.)
502.7. Other types of civil engineering works, including specialized
activities in other civil engineering sectors
503 Installations during construction
503.1. General industrial works
503.2. Installations for supplying gas and water, and sanitary
equipment installations
503.3. Installation of heating and ventilation appliances (district
heating, air conditioning, ventilation)
503.4. Insulation works
503.5. Electric installations
503.6. Installation of aerials, lightning conductors, telephones, etc.
504 Finishing constriction works
504.1. General finishing construction works
504.2. Façade and stucco work
504.3. Interior woodwork (including laying parquet floors)
504.4. Painting, glazing and wallpapering
504.5. Laying tiles and other floor and wall coverings
504.6. Other types of finishing and additional construction works
(installation of fireplaces, etc.)