Legal Updates

Professional work that requires special knowledge and expertise or special trust relationships is exempt from tender

June 27, 2023
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A local authority engaged contracted with service providers in the field of project management and supervision of engineering works and strategic planning without a tender.

The Supreme Court held that the engagement is exempt from tender as it is a professional work that requires special knowledge and expertise or a special relationship of trust. One of the exceptions that exempts a local authority from publishing a tender is when it is a "contract for the performance of professional work that requires special knowledge and expertise, or special trust relationships, such as: planning work, supervision, measurement, appraisals, consulting and similar works and so on”. However, the local authority must act according to the procedures of the Ministry of the Interior, which require, among other things, obtaining a legal opinion as well as conducting a discussion in a designated engagements committee. A work based on a "liberal profession" or a "professional" field in general, by itself is not enough to fall within the scope of the exemption and it is necessary to indicate an expertise that is "unique" enough. Thus, for example, a distinction must be made between general legal advice in the context of drawing up routine contracts and providing legal services in the specific field of planning and construction law or another field that requires more focused qualifications and skills. Here, the local authority contracted service providers with unique expertise in the context of accompanying and planning complex transportation and infrastructure projects at the national level, as well as promoting various planning programs. This is multidisciplinary professional expertise, in engineering, management and budget aspects, which require a high level of trust and therefore the contract is exempt of tender.