Exclusion Committee in Cyprus

Our client, a distinguished and long-standing constructor engaged in operations and specialization within the construction industry, has, over the last five years, successfully executed 145 construction projects in collaboration with the public sector in Cyprus (i.e public and governmental authorities) within the last 5 years. The total amount of the said projects exceeds the amount of Euro 25.000.000. 
 
The matter at hand involves contesting a denunciation initiated by the Contracting Authority, which was presented to the Exclusion Committee subsequent to the termination of a multimillion public contract. 
 
The Exclusion Committee, instituted pursuant to European Directive 2014/24/EU of the European Parliament and Council on 26.02.2014, as transposed into Cypriot legislation through the enactment of Law 73(1)/2016 and Regulatory Administrative Act 138/2016, is tasked with examining the potential imposition of either (a) mandatory horizontal exclusion of an Economic Operator from participation in a procurement procedure under Article 57(1) of the Law, or (b) potential horizontal exclusion of an Economic Operator from participation in a procurement procedure under Article 57(4) of the Law. The latter carries the potential penalty of exclusion from entering into new public contracts for a period of up to 5 and 3 years, respectively. 
 
In the course of evaluating the potential exclusion, the committee meticulously assesses whether three distinct conditions outlined in Article 57(4) of the Law concomitantly exist, specifically whether the Economic Operator has demonstrated: 
(a) Significant or persistent deficiencies, AND 
(b) Failure in the performance of a substantive requirement under a prior public contract, AND 
(c) Resulting in the early termination of that prior contract, damages, or other comparable sanctions. 
 
Our appointment to represent the client underscores the trust and confidence our firm has garnered over the years in adeptly navigating legal matters within the industry.