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Politics · Funchal · 23 September 2026

Public Contract Increases: What Does the Law Say?

The law allows public contract values to increase post-signing, but sets specific limits and conditions.

Public Contract Increases: What Does the Law Say?

A report on a tender for hospital laundry services for SESARAM has sparked public indignation on social media, with accusations of a lack of transparency and the notion that public entities inflate contracts after awarding them.

However, the Public Procurement Code (CCP) permits the final amount paid to differ from the initial contract price. The law outlines clear grounds and limits for these modifications, such as prior contractual stipulation, unforeseen changes in circumstances, or public interest reasons.

Restrictions exist to prevent modifications from undermining the tender process, including prohibitions on altering the contract's overall nature or distorting competition. Modifications below 10% of the initial contract price (or 15% for public works) are permissible, potentially reaching 50% under unforeseen circumstances, but always within strict regulations.

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