We provide contest inclusion in the Register of bad-faith suppliers
There are a number of negative effects suffered by the company included in the Register of bad-faith suppliers:
- Impossibility to take part in governmental and municipal procurements for 2 years;
- The introduction of the General Director of the company in the register of bad-faith suppliers (impossibility to take part in governmental and municipal procurements of firms in which he is the General Director);
- Tarnished reputation of the company and the General Director.
FAS makes a decision ofinclusionthe company in the Register of bad-faith suppliersfor the following reasons: evasion of the supplier from conclusion of the contract and violations in the process of the contract execution, which lead to the refusal of the public sector customer from the contract or to the contract termination in court.
Evasion of the supplier from conclusion of the contractis expressed as follows:
- Failure to sign the contract within the period prescribed by law;
- Failure to provide the contract execution security.
Evasion of the supplier from the execution of the contract can be expressed in different violations by the supplier (non-compliance of technical documentation with the requirements; such a violation of the terms of the contract, which leads to the impossibility of contract performance in the term; the lack of quality of the goods to the requirements of the contract, etc.)
It is important to understand that many grounds are not the result of the supplier’s intentional actions and cannot be the evidence of his misconduct; therefore, they are not the grounds of the inclusion of the company in the Register of bad-faith suppliers. In particular, the reasons to the refusal of the supplier from conclusion of the contract or from the execution of the contract are objective circumstances, which do not depend on him:
- Impossibility to conclude the contract because the breach of the equipment, damage (found defect) of delivered goods or its absence;
- Unpredictable increase of the market price of the goods (works, services), on deliver (execution, rendering) of which the contract must be concluded;
- Impossibility to deliver goods (execute works, render services) within the period specified in the draft contract, for reasons beyond the control of the supplier.
Unfortunately, today the procedure of inclusion the company in the Register of bad-faith suppliers is becoming normal, because it is very advantageous for the public sector customer to terminate the contract unilaterally and to get rid of the unwanted suppliers.
If the Decision to include information about your company in the Register of bad-faith suppliers has already entered into force, we recommend you immediately contact the Legal Business Solution lawyers for identify of prospects of your business.
We will help to challenge the decision and eliminate your company from the blacklist in advance.