The Ministry of Economy and Finance has confirmed that the new regulations governing public contracts executed through “demand bonds” aim to enhance transparency and ensure open competition and equal opportunities among all competitors, as part of the government’s efforts to improve the business climate.
In response to a parliamentary question, the ministry stated that the main transformation involves subjecting all contracts executed via demand bonds to pre-competition that is conducted exclusively through the public procurement portal, a mandatory procedure under Decree No. 2.22.431 and the decision issued by the Minister of Economy and Finance on June 23, 2023. This measure aims to eliminate the physical nature of demand bonds and put an end to exceptions, except in cases where competition cannot be applied.
The ministry clarified that demand bonds, which were previously a simplified means for executing works or procuring low-cost supplies, are now subject to the same fundamental principles that govern major public contracts. Article 91 of the decree outlines the necessary conditions and specifications for their preparation, while Article 152 emphasizes the potential removal of all procedural aspects from the physical attributes, a move activated by the ministerial decision.
The ministry further noted that the new mechanisms ensure the seriousness of bids and protect the rights of competitors. It is possible to impose coercive measures against non-serious competitors, in addition to requiring temporary or final financial guarantees when announcing purchases, thereby enhancing commitment and trust in executing contracts.
The ministry stressed the need to document price data extracted from the public procurement portal both in words and numbers, with arrangements made in ascending order to prevent any misunderstanding or potential manipulation, in accordance with the provisions of Law No. 104.12 relating to price freedom and competition.
The ministry explained that these reforms have the support of the National Commission for Public Procurement, which reinforced this direction in its decisions issued on August 6, 2024, and January 7, 2025, reflecting the government’s commitment to applying the fundamental procedures for public contracts to encompass all types of administrative contracts, including demand bonds.
