Abstract
Act of 8th November 2013 amending the Public Procurement Act, introduces the principle of responsibility of the Investor to the Subcontractor for failure obligation to pay by the Contractor. Amendment specifies also situations in which subcontracting may be limited. The ban of subcontracting is an exceptional and can only refer to the most important parts of the service or works, as well as to the installation of supplied goods.
To incur liability Contracting Authority to subcontractors, subcontract must be in writing. The liability of the Contracting Authority does not arise in the case of contracts for the smallest value -- not exceeding 0.5 % of the value of a public contract.
First, draft of the subcontract, and then the signed subcontract, shall be subject to acceptance by the Contracting Authority. Lack of acceptance means, that the Contracting Authority does not accept responsibility for subontract execution. Accepting the subcontract means that in the case of non-payment by the contractor to subcontractors, they can turn for payment directly to the Contracting Authority.
After determining that the payment is due -- the Contracting Authority shall direct pay to subcontractors and reduce the remuneration payable to the contractor.
The need for direct payments to sub-contractors sums exceeding 5% of the contract value, may be the reason for terminate the contract by Contracting Authority.