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    Federation of Polish Entrepreneurs Advocates Lowering Security Deposits in Tenders

    Estimated reading time: 1 minute

    In a bid to alleviate the burden on businesses, the Federation of Polish Entrepreneurs (FPP) is proposing a change in public procurement law. FPP suggests adding a new provision, §5a, to Article 452 of the Public Procurement Law, which would allow a reduction in the financial security required after completing half of the order.

    According to FPP, the current regulation, Article 452 §2, mandates a security deposit for proper contract execution not exceeding 5% of the total offer price or the maximum nominal value of the contracting authority’s obligation. FPP argues that setting the security deposit at 10% poses a significant burden on businesses and limits financial sector guarantees.

    Arkadiusz Pączka, FPP Vice President, anticipates that the proposed change would release half of the security deposit upon completing half of the total order value. While experts agree with the direction of the proposed changes, concerns arise regarding the automatic or mandatory reduction of security deposits. They argue for adaptability based on project specifics.


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