Work Contracts

“Works” denote the result of a construction project that is sufficient in itself to fulfil an economic or technical function. Works contracts include the construction of infrastructure (wastewater treatment plants, waste processing, sewage system reconstruction, construction of roads, railways, gas pipelines, etc.) by contractors. These contracts are awarded through public procurement to a selected contractor or consortium, a business entity registered to perform works on the construction of the subject infrastructure.

Works contracts means a contract covering:

• the execution, or both the execution and design of works;
• the execution, or both the execution and design, of a work related to one of the activities referred to in Annex II to Directive 2014/24/EU of the European Parliament and of the Council of on public procurement;
• the realisation, by whatever means, of a work corresponding to the requirements specified by the contracting authority exercising a decisive influence on the type or design of the work.

Works contracts under the IPA program are managed in accordance with the PRAG (General Conditions for Works Contracts financed by the European Development Fund (EDF) or the European Community) and the related Special Conditions. These contracts are implemented based on PRAG or FIDIC contract conditions. Most current work contracts use the red or yellow FIDIC book (conditions of contract).