Main principles of procurement

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There are five fundamental principles for public procurement. The EU procurement directive 2004/18/EG which covers public works contracts, public supply contracts and public service contracts is the legal foundation of which the Swedish Public Procurement Act (2007:1091) LOU is based upon.

The Swedish Public Procurement Act is a comprehensive and relatively complicated regulatory framework. In the work to draw up the contract documents and during the whole tender process the five principals are central for all public procurement. They are therefore essential to learn when working with public procurement.

  1. The principle of non – discrimination – a supplier may not be discriminated against as a result of their nationality or geographical location.
  2. The principle of equal treatment – all suppliers are given the same preconditions and may not be treated differently in any aspect.
  3. The principle of transparency – the procurement shall be characterized by openness and predictability. All interested companies shall, at all stages of the procurement, have access to the same information. Companies shall know in advance what will be decisive for the winning of the procurement.
  4. The principle of proportionality – the requirements of the procurement shall be reasonable in proportion to that which is to be procured. It is not permissible to set requirements that exclude a particular supplier, if these requirements cannot be justified based on the actual need.
  5. The principle of mutual recognition - certificates issued by competent authorities in one member state shall also apply in other EU/EEA nations.