Mechanisms exist in Luxembourg to take into account the evolution of time in relation to the price of a bid submitted in response to a public procurement procedure.

While the terms adaptation, variation and indexation are often similar, specific rules exist for each of these concepts.

A bidder must therefore be attentive in order to verify whether, for example, the evolution of salaries will be taken into account or not.

For the contracting authority initiating a public tender, it is also essential to be able to control the budgetary constraints relating to the execution of their contract, by choosing the right method of price offer.

In the same way, the price criterion as one of the criteria for awarding the contract must also reflect the importance desired by the public purchaser.

On the occasion of a day of conferences dedicated to the legal and practical aspects of public procurement and organised by the training institute Abilways, Maître Thibault CHEVRIER, Lawyer in Luxembourg and Partner at the law firm CHEVRIER & FAVARI, spoke on 28 November 2024 with a presentation entitled “Adaptation, variation, indexation of the price: how should it be handled throughout the life of the contract?“

This topic aimed to tackle many questions in an pragmatic approach:

– How should the price mechanism be analysed at the different stages of the contract? (When drawing up the specifications, during the competitive tendering process, when analysing bids and applications, etc.)

– The different types of clauses relating to price: discount clause, revision clause, variation clause, etc. drafting advice

– How to deal with pricing errors?

– The treatment of abnormally low bids and bids with a price of €0 in price schedules

– How to choose indices? How to discount a price?

– Litigation: case law chronicle in the field of pricing

Answers to these questions have been illustrated with concrete examples.

The analysis of recent decisions by administrative courts has also provided a better understanding of the concrete implications in a public procurement procedure in Luxembourg.

For any questions related to price changes, or for any questions regarding public procurement law in Luxembourg, please do not hesitate to contact our law firm.