Register of contracts

On 1st July 2016 becomes effective a completely new law concerning the register of contracts No. 340/2015 Coll. Spirit and purpose of the law is to release contracts, which are the basis for disposing of public estate. Therefore is founded a central register of contracts, which is going to be administrated by the Department of the Interior.

All contracts having as one party the state, municipalities, public institutions or legal persons, that are owned by the state to a high extend – have to be released. Either the party under public law or the signatory under private law are able to register the contract for release. The law is related to contracts, drawn up after the 1^st July 2016, or older contracts, of they are modified after this date. The law does not regard contracts with a value under 50.000,- CZK (exclusive of VAT).

As long as a contract is not released, it must not become effective. If it was not released three months after its drawing up, it will be void from beginning. However these penalties are taking effect not until 1^st July 2017.

Additionally it can be mentioned, that the duty to release contracts is already integrated in the law concerning public mandates. Nevertheless the new law is going to be stricter, as it is embracing a wider range of contracts and is also going to regulate penalties in case of non-releasing.