- Scope: Public works and concession contracts entered prior to the new administration taking office may be subject to renegotiation and/or termination.
- Procedure: The procedure may be initiated by the National Government or by request of the contractor. The renegotiation and/or termination must be approved by the National Executive Power, with the prior intervention of the Office of the Attorney General (“Procuración del Tesoro de la Nación”).
- General provisions: the Ministry of Economy shall establish the financial or economic guidelines to determine the renegotiation or termination of the contracts within thirty (30) business days after the release of Decree 713.
- Renegotiation provisions:
- The contractor shall waive to any claim arising from, or in connection with, consequential damages, loss of profit, unproductive expenses and possible economic damages of a similar nature, derived from the decrease in the rate of execution or suspension of the work or service due to an emergency situation. The contractor shall also waive any administrative and/or judicial claim in connection thereof.
- The contractor shall receive no compensation for the loss of profits for the works, goods or services which may be carved-out by the contract amendment.
- The renegotiation agreement shall establish the terms of payment of the amounts due to the contractor, if applicable.
- The rights and obligations of the parties arising from the renegotiation agreement shall guarantee the economic and financial balance of the contract.
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For additional information, please contact Nicolás Eliaschev and/or Javier Constanzó.