#62024CJ0820EU Court Clarifies When Public Contracts Can Still Be Modified
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Public contracts can still count as active when the work has been received and the final invoice has been submitted, if the contracting authority has not yet paid. That means EU rules on contract modifications can still apply during this late stage. Public buyers and contractors should treat the payment phase as part of the contract term for procurement purposes. Any change made before the authority has fully settled the contract may need to be checked against Directive 2014/24 rules on transparency, equal treatment, and whether a new procurement procedure is required.
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Key Changes
- Clarifies that a public contract may remain within its term until the contracting authority has paid what is due
- Confirms that EU rules on contract modifications can apply after works are received and the final invoice is submitted
- Signals that late-stage changes must still be checked for transparency, equal treatment, and possible need for a new tender
Obligations
What this law requires
In a public procurement contract, the contract may still be considered a 'contract during its term' under Article 72 of Directive 2014/24/EU after the works have been received and the final invoice has been submitted, if the contracting authority has not yet paid the contractor.
Contract modifications made before the contracting authority has fully paid the contractor may still need to be assessed under Article 72 of Directive 2014/24/EU to determine whether they are permitted without a new procurement procedure.
Contracting authorities must continue to respect the EU procurement principles of equal treatment and transparency when assessing modifications to a public contract that remains unpaid, even after receipt of the works and submission of the final invoice.