STOICA & ASOCIAȚII‘s team of lawyers, formed by Dan-Rareș Răducanu (Senior Partner) and Mircea Vasile (Junior Lawyer) has recently obtained an important victory for two Romanian entrepreneurs involved in a joint venture contract for the execution of a public procurement contract for the design and execution of works, drawn up in accordance with the General Conditions for design and execution of works contracts in Annex no. 2 to HG no. 1/2018.
Following an arbitral dispute conducted over a period of only six months, the Arbitral Tribunal constituted by the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania rendered and reasoned an arbitral award in which it fully upheld the claims of the contractors and obliged the contracting authority to pay the updated price remainder up to the flat-rate amount agreed by the parties at the conclusion of the contract, to pay in full the amounts withheld by the contracting authority as a performance guarantee in excess of the threshold of 10% of the contract price, and to pay the statutory penalty interest calculated from the date on which the payment obligation falls due until the date of its execution. The arbitral award is final and binding.
“This arbitral judgement is particularly important for all contractors who have agreed with the contracting authorities a lump sum price for the design and/or execution of works. In full compliance with the provisions of Article 1867 of the Civil Code, sometimes ignored by the contracting authorities, the Arbitral Tribunal established that the payment of the contract price on the basis of Interim Statements of Works and Interim Payment Certificates can be made until the signing of the acceptance report upon completion of works. After this point, the contracting authority is obliged to pay the remaining difference in price up to the updated flat-rate price without requiring any further supporting documents for works carried out under the works contract. On the other hand, the arbitral judgement is also important for contractors who have ongoing contracts and who have constituted the performance guarantee by successive withholdings of 5% of the Interim Payment Certificates. The Arbitral Tribunal established, in full agreement with the provisions of HG no. 965/2023, that the amounts thus withheld and exceeding 10% of the contract price must be returned to the contractor, upon request, in order to be used in the fulfilment of the subject matter of the contract of works. Moreover, the Arbitral Tribunal ruled that the contracting authority remains obliged to pay these withheld amounts even after the final acceptance report on completion of works has been finalised, since the obligation arose during the performance of the works contract.” said Dan-Rareș Răducanu (Senior Partner).
Established in 1995, STOICA & ASOCIAȚII has gained national and international recognition in the world of law and business, through its entire activity of legal assistance and representation of a vast portfolio of clients. From its foundation to the present day, the lawyers of STOICA & ASSOCIATES have proved that they are a strong team, founded on the respect of its principles: Fidelitas, Integritas, Fortitudo. STOICA & ASSOCIATES has acquired an excellent national and international reputation. Its professional performances are recognised in the most important legal guides: Chambers Europe, Legal 500, WTR 1000, IAM Patent 1000.
