Suspension of administrative contracts in the infrastructure sector08/07/2020
Por: Rodrigo de Pinho Bertoccelli, Amanda Pauli De Rolt
The infrastructure sector is no different from the other corporate ecosystems being disrupted by the pandemic’s impact. Emergency actions are necessary to preserve cash holdings and require, from contracting parties, preventive clauses to protect rights. Thus, the Public Administration is now able to suspend the execution of administrative contracts which had been signed for new construction projects or engineering services. Until objective conditions for the compliance with contractual obligations are met, the deadline for suspension may be extended. Regarding concessions and public-private partnerships (PPPs), a risk assessment is required as well as the registry of damages derived from said suspension.
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