Implementation rules are the rules that determine how a public contract is to be performed after it is concluded between the principal and the contractor. The principal is the government agency that issues a contract for a particular need, such as the delivery of furniture, the cleaning of a building or the organization of an event. The contractor is the company or person who will perform the contract at a given price.
The execution rules apply to all public contracts and public works concessions in the classic sectors, special sectors and the defense and security domain. The execution rules are laid down in the Royal Decree determining the general execution rules of public contracts of Jan. 14, 2013 This Royal Decree also contains the general conditions of contracting (AAV), which establish the rights and obligations of the principal and the contractor.
Implementation rules include the following:
- The surety bond: this is a guarantee that the contractor must provide to ensure the proper performance of the contract. The bond is usually 5% of the total price of the contract and can be provided in cash, securities or a bank guarantee.
- The execution period: this is the period within which the contractor must complete the order. The execution period is determined in the assignment documents and may be extended or shortened in case of force majeure, change of assignment or delay of the client.
- Delivery: this is the act by which the client accepts or rejects the assignment. The acceptance can be provisional or final. Provisional acceptance means that the client accepts the assignment but can still have some defects corrected. Final acceptance means that the client definitively accepts the assignment and releases the contractor from his obligations.
- Payment: this is the fee paid by the client to the contractor for the performance of the assignment. Payment is usually made in installments, according to the progress of the assignment. The payment is subject to VAT and can be reduced or suspended in case of default or dispute.
- Liability: this is the responsibility borne by the client and the contractor for damages caused or suffered during the performance of the contract. Liability may be contractual or extra-contractual, and may be covered by insurance.
- The disputes: these are the conflicts that may arise between the client and the contractor regarding the performance of the contract. The disputes can be prevented or resolved by consultation, mediation, arbitration or court proceedings.
The execution rules are thus the rules that the principal and the contractor must comply with in order to execute the public contract in a correct and efficient manner. The execution rules are based on public procurement legislation and principles, and must be adapted to the specifics of each contract.
