Every year, foreign companies win public procurements of significant value in Hungary, which are usually high-value construction projects. With regard to these construction investments, it can be said that the win rate of foreign companies can exceed 50 %, which reflects the openness of the Hungarian public procurement market and the broad competition it ensures. At the same time, the value of goods and service public procurements won by foreign tenderers, in addition to construction projects, is also significant.
In order to promote the principle of equal opportunities and equal treatment, both Hungarian and non-Hungarian economic operators may submit offers in open public procurement procedures at the national and EU level.
Chapter XI of the Act No. CXLIII of 2015 on Public Procurement (hereinafter: Procurement Act) sets out the requirements for tenderers in public procurement procedures related to their legal status (grounds for exclusion) and eligibility requirements (economic and financial situation, technical and professional competence etc.). Tenderers must prove that they meet these requirements, as determined by the contracting authority in the respective public procurement procedure.
What are the grounds for exclusion and proof of compliance with the eligibility requirements for economic operators not established in Hungary?
With regard to the proof procedures, guidance can be found in Sections 10-11 of the Government Decree No. 321/2015 (30.X.) on the method of proof of eligibility and grounds for exclusion in public procurement procedures and the method of determination of technical specifications for public procurements (hereinafter: Government Decree).
In addition to proving the grounds for exclusion and the eligibility requirements, if required for the execution of the procurements, proof of registration in the country of establishment of the economic operator or possession of the permit, license, or membership in an organization or chamber of commerce required in the country of establishment is also required.
During the procurement procedure, the contracting authority shall verify the following information submitted by the tenderer in the procedure:
- the declaration contained in the single EU procurement document
- the certificate issued by the competent authority of the country concerned,
- and the declarations of the tenderers.
E-certis, IMI
It shall be emphasized that the e-Certis also helps contracting authorities and tenderers in the EU Member States and the three EEA countries (Iceland, Liechtenstein, and Norway) to identify the certificates and attestations required to prove the grounds for exclusion and the eligibility requirements in public procurement procedures. If the information is available in the e-Certis system, the tenderer cannot be required to provide a certificate in this regard.
In addition, pursuant to Section 69 Subsection 13 Public Procurement Act, the contracting authority may request information from other public or local authorities, bodies or economic operators. Therefore, if the contracting authority has a specific question regarding an individual certificate or document submitted by the tenderer and already verified in the e-Certis system, it may contact the competent authorities of the tenderer’s Member State to obtain further information via the Internal Market Information System (IMI) linking the authorities of the European Economic Area (EEA).
The information request refers to the following areas
- technical specifications (labels, examination reports, certificates, other means of proof),
- reasons for exclusion,
- uniform European procurement document,
- means of evidence,
- quality and environmental management standards,
- the official list of authorized economic operators,
- abnormally low offers.
If the country where the tenderer established outside the EU does not have the certificate required by the Procurement Act, the contracting authority may accept an equivalent certificate or document on the basis of Section 47 Subsection 2 Government Decree, if no certificate exists in the country concerned or if it does not contain all the required information ,the contracting authority shall accept an affidavit of the tenderer or candidate or, if such a statement is not known in the country concerned, a statement made or notarized by the tenderer or candidate before a competent court, authority , chamber or professional organization.
With regard to the fact that the submission of tenders in public procurement procedures is made in Hungarian language – or, if they can be submitted in a language, other than Hungarian, the contracting authority shall indicate this in the invitation to tender- the contracting authority shall be responsible for the translation of the submitted documents.
If you would like to submit a tender in a public procurement procedure in Hungary or if you have any questions regarding the submission of a tender, please contact our office with confidence!
