Abstract

The article identifies current practical issues and interpretational discrepancies related to reducing the contractor’s remuneration due to defects in the object of public procurement identified at the stage of its formal acceptance and after a successful acceptance. Despite the relative attractiveness of the price reduction instrument in situations where difficulties arise in enforcing repairs or replacements from an unreliable contractor, it seems that contracting authorities continue to use it cautiously. The author analyses the current framework for price reductions under the statutory warranty, as well as the practice of the more commonly used conditional acceptances. The author suggests reaching a settlement to resolve disputes between the parties regarding the validity of accepting the object of procurement. The article also discusses the practical implementation of a price reduction by the contracting authority, considering the utility of a settlement in the enforcement stage of a price adjustment.