Ordering Parties are now able to deduct a stipulated penalty from amounts due to an unreliable contractor.

An article by Paweł Karasiński, Attorney-at-Law, published in today’s issue of Dziennik Gazeta Prawna, addresses the issue of deducting stipulated penalties in public procurement procedures.

One of the regulations protecting public procurement contractors introduced under the so-called Shield 4.0 was a ban on deducting contractual penalties from contractors’ remuneration, as well as a ban on satisfying them from the performance bond. 

What does the situation look like today?

Please feel invited to read the article available [here].