practice in republic of crotia social clauses in public … · article 51- reserved contracts –...

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PRACTICE IN REPUBLIC OF CROTIA – SOCIAL CLAUSES IN PUBLIC PROCUREMENT OR RESERVED CONTRACTS Stana Dolenac, law graduate - Public procurement consultant in Projekt jednako razvoj d.o.o. Zagreb

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Page 1: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

PRACTICE IN REPUBLIC OF CROTIA –SOCIAL CLAUSES IN PUBLIC

PROCUREMENT OR RESERVED CONTRACTS

Stana Dolenac, law graduate

- Public procurement consultant in Projekt jednako razvoj d.o.o.

Zagreb

Page 2: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Article 51- Reserved contracts – Croatian Public Procurement Law

• (1) Contracting Authority may reserve the right to participate in public procurement procedures to:

• 1. sheltered workshops

• 2. economic operators whose main aim is the social and professional integration of disabled persons, or

• 3. economic operators whose main aim is the social and professional integration of disadvantaged persons

• 4. may provide for such contracts to be performed in the context of sheltered employment programmes.

Page 3: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Article 51- Reserved contracts – Croatian Public Procurement Law

• (2) In the cases referred to in paragraph 1. of this article, minimum 51 % of the employees of those workshops, economic operators or programms are disabled or disadvantaged workers.

• (3) Contracting Authority must indicate in the invitation to tender that the reserved contract is awarded in accordance with this article.

Page 4: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Article 51- Reserved contracts – Croatian Public Procurement Law

• (4) Economic operator referred to in paragraph 1. of this article must prove their status required under paragraph 2 of this article by enrolling in the appropriate register, by a certificate issued by the competent authority or in another appropriate manner.

Page 5: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Article 51- Reserved contracts – Croatian Public Procurement Law

• (5) Exceptionally, the economic operators referred to in paragraph 1 of this Article for which the right to participate in public procurement procedures is reserved, may award up to 20% of the value of the reserved contract to subcontractors who do not meet the conditions prescribed by the same paragraph

Page 6: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Office cleaning services

• Central government office for central public procurement – central procurement for government bodies

• Open procedure - to conclude a framework agreement with one economic operator

Page 7: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Office cleaning services

Criteria Points The highest score

Relative importance

Price K1 80 80%

Payment of transport cost reimbursement at work and from work

K2 12 12%

Payment of recourse for use vacation K3 4 4%

Payment of the annual Christmas holiday bonus

K4 4 4%

Total: 100 100%

Page 8: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Office cleaning services

• Puk = K1 + K2 + K3 + K4

• Puk - Total points for the offer

• K1 - the number of points the offer received for the price offered

• K2 - the number of points received for the payment of transport cost

• K3 - the number of points received for the payment of recourse for use vacation

• K4 - the number of points received for the payment of the annual Christmas holiday bonus

Page 9: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Social elements - change in the price of the offer

• The bid price is variable

• The change in unit prices is related to the change in the minimum wage in the Republic of Croatia, according to the Decree of the Government of the Republic of Croatia. Changes in unit prices occur in the case of a change in the minimum wage by 5 percent or more, to more or less

• The contracting authority shall provide the selected tenderer and the users with a written notice of price change

Page 10: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Social elements - change in the price of the offer

• The unit price increase / decrease is calculated according to the formula:

• NJC = PJC x [0.2 + 0.8 x (1 + K / 100)]

• where is:

• NJC - new unit price of service;

• PJC - initial unit price of the service;

• K - percentage of increase / decrease of the minimum wage

Page 11: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Social elements - change in the price of the offer

• If the minimum wage changes by 5% or more from the moment of opening the bids until the expiration of each individual public procurement contract, to more or less, the coefficient "K" is equal to the percentage increase or decrease of the minimum wage. In this case, the coefficient "K" shall apply from the first day of that month in the year following the month in which the minimum wage changes have occurred and the new unit bid price is calculated

• The variable part of the unit price refers to the share of salary in the price, which the client awards to the bidder in the amount of 80%

Page 12: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Procurement of flags

• City of Zagreb conducted the procurement of flags

• Procurement subject – sewing and delivery of flags

• The provision on reserved contracts is included in the tender documentation

• 2 Bidders: URIHO (institution for vocational rehabilitation which employs people with disabilities) and social cooperative Humana Nova

Page 13: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Registry in Republic of Croatia

• According to the Law on professional rehabilitation and employment of persons with disabilities, there is a registry of the persons with disabilities and within Republic of Croatia, and excerpt from mentioned registry constitutes a proof on the number of employed people with disabilities, therefore making it possible for the contracting authorities to determine exact status of the economic operator

Page 14: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Results

• Social and professional integration of disabled or disadvantaged persons in the community

• Employment of such persons

• Improvement of living conditions

Page 15: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Problems

• There are not many social enterprises or institution in Republic of Croatia

• There are not many such procurement procedures

• Few procurement professionals know and apply such procedures at all

Page 16: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Sheltered workshops in Republic of Croatia

Ustanova za zapošljavanje, rad i profesionalnu

rehabilitaciju osoba s invaliditetom Split

Page 17: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Negative public perception

The Central Office is seeking an investigation into entrusting the business of cleaning to the company

Control Home Management

No shame: he took millions and bought a house, not paying workers

We looked for a man who makes a profit through someone else’s back and with the blessing of the state

Page 18: PRACTICE IN REPUBLIC OF CROTIA SOCIAL CLAUSES IN PUBLIC … · Article 51- Reserved contracts – Croatian Public Procurement Law • (1) Contracting Authority may reserve the right

Thank you for attention