Issuing of an expert opinion on the initiation of amendments to construction investment contracts

Decree of the Minister of Construction and Transport 4/2023 of the Ministry of Construction and Transportation

Due to the increase in the price of building materials as a consequence to the war in Ukraine the Government Decree 13/2023 made a modification of the contract in cases of constructions under the Public Procurement Act possible.

However, this option is not available for all cost increases. Costs that the bidding had to take into account when signing the contract are part of the normal commercial risk of the bidding party and cannot be claimed. The Minister of Construction and Transportation will give an opinion regarding the question of by which construction materials and products and to what extent does the cost increase fall within the normal commercial risk, taking into account the specificities of the contract concluded.

Decree 4/2023 of the Ministry of Construction and Transportation (hereinafter: the Decree) contains the list of building materials and products affected by the price increase and the rules for issuing the above mentioned opinion.

The request for an opinion must be submitted by the bidding party together with the initiative for the amendment of the contract, using the form indicated in the Decree. The request must be submitted electronically to the electronic mail address of the Minister of Works and Transport. In case of an incomplete application, a deficiency may be submitted within 5 working days.

If all the conditions set out in the two regulations are met, the Minister will issue the expert opinion within 30 days of the requested body’s notification.

BALÁZS & KOVÁTSITS Legal Partnership