Veřejné zakázky 2026

National legislation simplifies. What does the amendment to the ZZVZ bring?

The new thresholds are set as follows:

• For construction works, the threshold increases from CZK 6 million to CZK 9 million excl. VAT.

• For supplies and services, the threshold increases from CZK 2 million to CZK 3 million excl. VAT.

In practice, this means that more contracts can be awarded outside the formal regime of the Act. However, the increase in thresholds does not mean absolute freedom, and contracting authorities must rely on well-set internal guidelines. Even outside the ZZVZ regime, they are obliged to comply with the basic principles under Section 6 of the ZZVZ, such as transparency, proportionality, and non-discrimination.

At ARROWS, we deal with these issues daily. For our clients, including 51 municipalities and regions, we regularly prepare internal guidelines that ensure compliance with the law even for small-scale public contracts and protect contracting authorities from future disputes. In this area, our Prague-based law firm provides comprehensive legal support.

Do you need a review or preparation of internal guidelines for awarding small-scale public contracts (VZMR)? Contact us at consultation@arws.cz.

A new and extremely risky regulation is coming from Brussels

While the Czech Republic simplifies small-scale contracts, the European Union is introducing an unprecedented complication for large tenders. ARROWS has a specialized Czech legal team for public procurement that helps clients navigate the new regulations. This refers to Regulation (EU) 2022/2560, known as the Foreign Subsidies Regulation (FSR). This regulation aims to close a regulatory gap. While state aid within the EU is strictly controlled, subsidies from third countries have not been controlled so far and could unfairly benefit certain bidders.

Many companies mistakenly believe that the FSR does not apply to them unless they have links to Asia or Russia. This is a fundamental misconception. The regulation applies to financial contributions from any country outside the EU – including the USA, Great Britain, Switzerland, Norway, or Japan. If a Czech branch is part of an American corporation that has provided it with, for example, a low-interest loan, the FSR applies to it.

Addressing the FSR requires a comprehensive international perspective. Thanks to our ARROWS International network, built over ten years, we handle cases with an international element practically every day and are able to coordinate your company's defense both in Prague and directly in Brussels.

For an immediate assessment of your situation regarding the FSR, write to us at consultation@arws.cz.

When does the FSR apply to you? Two key thresholds you need to know

In order to have to deal with the administration associated with the FSR within a public contract, you must meet two thresholds. The notification obligation arises if both conditions are met simultaneously.

1. Contract value threshold: The estimated value of the tender (or the sum of its lots) is EUR 250 million (approx. CZK 6.3 billion) or higher.

2. Financial contributions threshold: The participant in the procedure has received foreign financial contributions totaling EUR 4 million (approx. CZK 100 million) or more in the previous 3 years.

Moreover, the calculation does not only include your company. Contributions to you, your non-autonomous subsidiaries, your holding company, and your main subcontractors in the given contract are aggregated. The greatest risk is underestimating what constitutes a financial contribution.

ARROWS lawyers will prepare a legal opinion (FSR risk analysis) for you, which will assess all your financial flows from third countries and clearly determine whether you have a notification obligation. You might also be interested in what the practical duties of directors are in managing corporate affairs and meeting statutory limits.

Want to know what your legal options are and whether you fall under the FSR? Write to consultation@arws.cz.

What do you newly have to do in a tender? A declaration or a detailed Form FS-PP

If you participate in a tender over EUR 250 million, you have two new obligations. Even if you are below the threshold (less than EUR 4 million in contributions), you must submit a Declaration to the contracting authority stating that you have not exceeded this threshold.

If you are above the threshold (more than EUR 4 million), you must submit a full Notification. This notification is submitted on a specific technical form required by the European Commission: Form FS-PP. It is a detailed document where you must describe all relevant foreign financial contributions in detail.

Submitting Form FS-PP can lead to the initiation of an investigation by the European Commission, which under the amendment to Section 40 of the ZZVZ automatically extends the tender period. This can suspend the entire tender for months, which has a major impact on your business planning.

The preparation of documents required by law, such as Form FS-PP, is a new and highly specialized discipline. ARROWS lawyers will ensure the preparation of complete FSR documentation for you, protecting your bid from exclusion. For our clients (our portfolio includes over 150 joint-stock companies and 250 LLCs), we provide these services with high priority, as we realize that the entire contract is at stake.

Get in touch with us at consultation@arws.cz and get a tailored legal solution for Form FS-PP.

Draconian sanctions for non-compliance with the FSR

Ignoring the FSR is financially extremely risky. Sanctions are not calculated from the contract value, but from your group's worldwide turnover.

FSR and international sanctions: Do not confuse two different issues

Many managers now hear about the screening of foreign companies and associate it with international sanctions (e.g., against Russia). It is crucial not to confuse these two regulations, as both can lead to exclusion from a tender, but for different reasons.

1. Foreign Subsidies Regulation (FSR): Addresses economic market distortion. It applies to all third countries (USA, UK, China...). The consequence is an EC investigation and a potential fine (up to 10% of turnover) or exclusion.

2. Section 48a of the ZZVZ (International Sanctions): Implements political international sanctions. It applies to specific persons and entities on sanction lists. The consequence is an absolute ban on awarding the public contract.

While Section 48a of the ZZVZ addresses political sanction lists, the FSR addresses economic subsidies from any country outside the EU, including allies. Therefore, even if you are 100% compliant with the sanction lists, it does not mean you have resolved the FSR issue.

For our clients, we screen suppliers and business partners on both fronts. We ensure the acquisition of necessary permits and screening on sanction lists (Section 48a), while simultaneously conducting legal analyses of FSR risks.

Do you need to screen your partners or your entire corporate structure? Do not hesitate to contact our office – consultation@arws.cz.

Other trends for 2026: Digitalization and responsible procurement

In addition to the FSR and small-scale contracts (VZMR), you should follow two other trends in 2026 that are changing the face of procurement.

Digitalization and mandatory eForms

The mandatory use of the new European electronic forms (eForms) has been a reality since February 2024. The aim is terminology harmonization and data analysis. For you, this means that all data (including that for the FSR) is now in a machine-readable format in the Public Procurement Bulletin (VVZ) and the National Electronic Tool (NEN). Any errors or discrepancies are thus much easier for supervisory authorities to trace.

Easing of rules for responsible procurement (ESG)

The amendment to the ZZVZ eased the obligation to apply ESG and abolished it completely for small-scale contracts. The obligation to take social and environmental aspects into account (Section 6, Paragraph 4 of the ZZVZ) was eased from "where possible" to only "where appropriate". However, the contracting authority must still properly justify its procedure (why it was not appropriate). For suppliers, this means greater flexibility in bids.

Do you need legal assistance with setting up ESG in your bids or preparing justifications? Contact us at consultation@arws.cz.

Common errors in tender procedures (outside FSR)

New European risks do not mean that the old ones have disappeared. The Office for the Protection of Competition (ÚOHS) remains active, and errors in bids or contracting authority procedures are still costly.

Disputes over fines often start with an unmanaged contract modification during performance. In the video, we show how to set up modifications to commitments so that they hold up. https://www.youtube.com/watch?v=pUt5X2nozpQ

Why address public procurement with ARROWS?

The public procurement environment in 2026 is paradoxical. While national rules for small-scale contracts (VZMR) bring welcome relief, the new European FSR regulation represents the greatest financial and administrative risk for companies in the last decade.

At ARROWS, we combine both. We are large enough to protect you from FSR threats in Brussels through the ARROWS International network, and at the same time flexible enough to help you review a bid for a local small-scale contract (VZMR).

Market leaders rely on us. We draw our experience from long-term legal advisory services for our clients, which include more than 150 joint-stock companies, 250 LLCs, and 51 municipalities and regions. We pride ourselves on speed and high quality.

We understand that law and business are interconnected. Therefore, we actively seek business and investment opportunities for our clients and enjoy connecting interesting business ideas. Whether you are dealing with exclusion from a tender, the preparation of Form FS-PP, or just need a contract review or the preparation of an internal guideline, our lawyers are ready to help you.

For a non-binding consultation of your situation, write to us at consultation@arws.cz.