By: Felipe Bahamondez and Paulina Farias
Published by: Getting the Deal Through

  • What is the relevant legislation regulating the award of public contracts?


Act No. 19,886of 30July2003about the Administrative Contracts Bases for Supply and Provision of Services (Act No. 19,886/2003) (the Act), and its regulation, Decree No. 250of 24September2004, set the basic rules for the procurement of goods and services by public entities.

The Act establishes, as a general procurement rule, the public bidding system, but in exceptional cases a public entity may contract through a private bidding process or through a direct deal.

  • Is there any sector-specific procurement legislation supplementing the general regime?


In the construction field, Decree No. 75dated 1December 2004 (Decree No. 75/2004) and Decree No. 48dated 9September 1994 (Decree No. 48/1994), both issued by the Ministry of Public Works, establish special procurement rules that apply to the construction of public works and public works advisories.

The energy supply services executed by the public distribution service’s concession companies are also governed by a specific statute, regulated in the General Act for Electric Services (Force of Law Decree No. 4, dated 5February 2007) and its regulation, approved through Supreme Decree No. 106of 2005.

Additionally, the assignment of concessions by public bodies is subject to special statutes, regulated among others by the following acts:

  • concession for use of exclusive ways to perform public transport (Act No. 18,696,dated 31March 1988);
  • public works concession (Decree No. 900,dated 18December 1996and Decree No. 956,dated 20March 1999); and
  • concession for the use of municipal property (Force of law Decree No. 1,dated 26July 2006).

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