Abstract

In this article the author examines issues and principles for prefinancing under public procurement contracts. In Art. 151a of the Public Procurement Act the Polish legislator provided for admissibility of prefinancing public procurement contracts, though without more precisely specifying this legal construction. For this reason it must be recognized that the legislator has allowed for part of the remuneration to be paid before the completion date. The contracting authority has the discretion, however, within the limits of the principle of the freedom of contract, to introduce specific conditions for payment and settlement of prefinancing. The author criticizes Art. 143a (1) of the Public Procurement Act, which stipulates that the contracting authority is required to extend prefinancing under construction contracts.