Brno court clears Office of misconduct in cancelled construction digitalisation contracts
The Regional Court in Brno has ruled in favor of the Office for the Protection of Competition (ÚOHS), finding no procedural errors in its cancellation of the Ministry of Regional Development’s (MMR) tender for the digitisation of the construction process. The court’s decision, announced today, confirms the OPC’s actions were justified, following a complaint lodged by System Servis, a company that had challenged the contract.
System Servis claimed its exclusion from the tender process was unjust, despite the MMR arguing otherwise. The court ruled that System Servis was indeed eligible to submit its proposal, stating that it was “at least theoretically possible” for the company to participate in the contract. System Servis, often referred to by former Regional Development Minister Ivan Bartoš as a “printer supplier,” had been criticized for not participating in the tender initially. However, the court emphasized that the company is a legitimate IT contractor with a portfolio of relevant experience.
The court’s decision revealed several issues in the MMR’s handling of the tender. Among the most critical were the unclear conditions surrounding the use of software for the project, as well as vague deadlines. These uncertainties, the court ruled, made it difficult for contractors to fully assess their ability to meet the requirements of the tender. Additionally, the ministry’s failure to launch the procurement process early enough was flagged as a contributing factor to the time constraints placed on potential bidders.
The tender in question, titled “Ensuring the Digitisation of the Construction Procedure,” was announced in March 2023 by the Ministry of Industry and Trade. System Servis had filed its complaint after raising multiple objections to the tender process. The company, despite not being directly involved in the original contract, argued that the unclear terms and conditions effectively prevented fair competition.
According to the ÚOHS, the Ministry of Regional Development failed to provide contractors with essential information necessary for completing the contract. For instance, specific delivery deadlines were never set, leaving contractors unsure of how to meet the required timeline. Moreover, the MMR placed conditions on the software that could be used but did not disclose whether it would be compatible with the contract until after it was signed—a key criterion for potential bidders. Despite suggestions from contractors, the ministry refused to amend these conditions.
The court also highlighted the ministry’s delays in initiating the procurement process, pointing out that although the need for a new information system had been known since at least 2021, the tender was not announced until 2023. The court attributed these delays to time constraints that affected the contract, a situation exacerbated by the ministry’s failure to act sooner under the leadership of former Minister Klára Dostálová. A previous contract for digitising construction proceedings was cancelled by Bartoš, who initiated a new tender.
The court’s findings included feedback from 23 suppliers in the sector, many of whom cited the contract’s terms and conditions as reasons for not participating in the tender. The ÚOHS’s survey of these suppliers was found to be sufficiently representative by the court.
The ruling comes as the government prepares to address the future of the construction digitisation process. Transport Minister Martin Kupka is set to present an analysis to the government on Wednesday, outlining options for either continuing the development of the existing system or starting over with a new tender. Kupka has taken on the responsibility for overseeing the project following Prime Minister Petr Fiala’s recommendation to dismiss Bartoš due to ongoing issues with the digitisation system.
Kupka, along with new Regional Development Minister Petr Kulhánek, is also working on legislative changes that could allow both the current and any new systems to operate concurrently. This would enable construction documentation to remain in digital form, streamlining the process.
Meanwhile, the opposition Pirates Party, led by Jakub Michálek, has called for a pragmatic approach. Michálek stressed the importance of completing the digitisation process without further delay, warning that starting from scratch could push the project’s completion to 2028. “We advocate for a ‘partial bypass,’ allowing both systems to function side by side temporarily. This would ensure that construction documentation remains digital, avoiding the slow and cumbersome process of manual transfers between authorities,” Michálek said in a press release.
The government’s decision on how to proceed with the digitisation project is expected to be a pivotal moment in determining the future efficiency of the Czech Republic’s construction processes.
Source: CTK
