Zadávání veřejných zakázek malého rozsahu

What are small-scale public contracts and why should you care?

This is where a major pitfall lies. Although you are exempt from complex procedures, the law still requires you to adhere to its fundamental principles: transparency, proportionality, equal treatment, and non-discrimination. In practice, this means the burden of proving that the procedure was correct rests entirely on you.

While a procedural error in a large contract is easily identifiable, with small-scale public contracts (SSPCs), a breach of the abstract principle of "transparency" can be challenged retroactively at any time by an auditor or a dissatisfied supplier, putting you in a very vulnerable position.

This apparent freedom thus creates a trap in the form of a false sense of security. Managers and elected representatives focus on speed and simplicity but underestimate the legal weight of these principles. The lawyers at ARROWS deal with the consequences of underestimating these principles daily and help clients establish clear internal rules to navigate this treacherous area safely. For an initial consultation, contact us at consultation@arws.cz.

Attention, a change! What new financial thresholds apply from 2025?

A major legislative change has taken place this year. An amendment to the Public Procurement Act, which came into effect on 3 April 2025, significantly increased the financial thresholds for SSPCs.

The new thresholds under Section 27 of Act No. 134/2016 Coll. are as follows:

• Supplies and services: the threshold increases from CZK 2,000,000 to CZK 3,000,000 excl. VAT.

• Construction works: the threshold increases from CZK 6,000,000 to CZK 9,000,000 excl. VAT.

This 50% increase is a double-edged sword. On one hand, it can reduce the administrative burden. On the other hand, it means that a huge volume of contracts that previously fell under the safer and procedurally clearer "below-the-threshold" regime will now move into the SSPC category.

Organisations accustomed to fixed procedures will suddenly find themselves in an environment where the rules are not explicitly set and where internal guidelines for proper and defensible procurement are lacking. The intended simplification thus paradoxically increases the legal risk for a significant number of public entities.

This change is a critical moment to review your internal processes. ARROWS is already preparing updated internal directives and expert training for its clients, which include 51 municipalities and regions, to ensure a smooth and safe transition to the new rules.

How to proceed correctly? Three paths to a successful SSPC award

The most effective tool for ensuring compliance with the law and minimising risks is a well-drafted internal directive. This document is not just a bureaucratic formality but your legal shield. In the event of an audit or dispute, the internal directive and records of its observance are key evidence that you have acted transparently and with due managerial care.

According to the methodologies of the Ministry of Regional Development and established practice, there are three basic ways to award an SSPC:

1. Direct award: This involves directly approaching a single supplier and concluding a contract. This procedure is suitable only in specific cases: for contracts of very small (so-called de minimis) value (internal directives often set a limit, e.g., CZK 50,000), in extremely urgent situations (emergencies), or if there is demonstrably only one supplier on the market. Its overuse for higher-value contracts should be avoided.

2. Closed call: The contracting authority invites a limited, pre-selected group of suppliers to submit a tender (practice and methodologies recommend a minimum of three).
It is crucial to ensure a fair selection of the approached companies and their rotation to avoid suspicion of discrimination and restriction of competition.

3. Open call: This is the most transparent method, where the call for tenders is published in a way that allows an unlimited number of suppliers to bid for the contract (typically on the contracting authority's profile). A well-drafted call must contain a clear specification of the subject matter, evaluation criteria, and all conditions necessary for preparing comparable tenders.

A properly established internal directive defines which of these procedures to use depending on the estimated value of the contract. Drafting tailor-made internal directives is one of the key services that ARROWS provides to public contracting authorities, thereby protecting not only the organisation but also its statutory bodies and responsible persons.

The most common mistakes that can cost you millions: Risks in contract preparation

The biggest and most expensive mistakes often arise even before the first supplier is approached. Their consequences can include the invalidity of the contract, the obligation to return a subsidy, or even criminal liability.

• Incorrect determination of the estimated value: This is a cardinal sin of public procurement. The law requires adding up the values of substantively and temporally related performances to prevent the artificial underestimation of a contract and circumvention of stricter rules. An error at this stage means the entire procedure was unlawful from the start.

• Artificial splitting of contracts: This is a deliberate attempt to divide one large contract into several smaller ones to avoid a formal tender procedure. For control authorities, this is a clear signal for an in-depth audit.

• Discriminatory tender conditions: A common offence is overly narrow technical specifications that indirectly refer to a single specific product or brand. Equally problematic is the combination of unrelated performances into a single contract (e.g., construction work and the supply of specialised software), which unjustifiably limits the pool of potential suppliers.

The following table summarises the most serious risks in the preparatory phase and ways to prevent them.

Who monitors the rules and how to defend yourself?

Many contracting authorities believe that the main supervisory body is the Office for the Protection of Competition (ÚOHS). However, for small-scale public contracts, this is not the case. The ÚOHS does not have the authority to review the contracting authority's procedure for an SSPC unless the authority voluntarily decides to follow the full regime of the Act. This supervisory gap is filled by other, often much stricter, control mechanisms:

• Subsidy providers: They have their own, very strict rules and audit teams. Any identified error can lead to a reduction or withdrawal of the entire subsidy.

• Supreme Audit Office (NKÚ) and internal auditors: They check for economy and compliance with legal regulations.

• Law enforcement authorities: In cases of suspected corruption or damage to the EU's financial interests, the police become involved.

• Unsuccessful tenderers: They can file a complaint with control authorities or defend themselves in court. In practice, the institute of so-called "reservations" is also used – informal objections that, while not legally enforceable, can signal a serious problem in the contracting authority's procedure.

Given the absence of formal supervision by the ÚOHS, having a preventive legal defence is all the more important. ARROWS provides legal consultations that protect against fines and audits, and in the event of a dispute, ensures effective representation before administrative authorities and courts. Since there is no official referee on the field, it is essential to have an experienced legal expert in your corner from the very beginning.

From supplier selection to contract signing: Other hidden risks

The risks do not end with the announcement of the contract. They lurk at every stage of the process until its full completion. The most common include:

• Conflict of interest: A member of the evaluation committee who has personal or business ties to one of the tenderers can jeopardise the entire procedure.

• Unlawful exclusion of the most advantageous tender: Excluding the supplier with the best price due to an easily correctable formal error (e.g., a missing signature on one page) without inviting them to provide clarification violates the principle of proportionality and can lead to a lawsuit.

• Contracting errors: Failure to conclude a written contract or to publish it in the Register of Contracts can render it invalid.

• Substantial changes to the contract: Concluding addenda for so-called "additional works" that fundamentally change the original subject matter or price of the contract is considered an unlawful circumvention of competition.

The following table identifies key risks in the second half of the procurement process.

Do you have international suppliers? Beware of cross-border aspects

In a globalised world, it is not uncommon for a supplier to be a foreign entity. This brings specific risks that need to be actively managed. One of the most serious is the violation of international sanctions. Concluding a contract with an entity on a sanctions list can lead to a fine of up to CZK 4 million and, in more serious cases, to criminal prosecution for the offence of violating international sanctions.

In addition to sanctions, other aspects must be addressed, such as different legal standards, the enforceability of the contract abroad, or language barriers in the documentation. This is where the strength of an international background truly shows.

Thanks to the ARROWS International network, built over ten years, our firm's lawyers handle cases with an international element on a daily basis. We can not only vet foreign partners against sanctions lists but also ensure that your contracts are legally enforceable abroad and help you navigate complex international regulations.

ARROWS: Your partner for safe and effective public procurement

Awarding small-scale public contracts offers welcome flexibility, but this freedom comes at the cost of risks that require expert legal guidance. The new, higher thresholds effective from 2025 make this need even more urgent. Our experience from long-term cooperation with clients is your guarantee of quality. Our portfolio includes more than 150 joint-stock companies, 250 limited liability companies, and 51 municipalities and regions for whom we regularly handle these issues.

ARROWS provides you with a comprehensive legal service that covers the entire procurement process:

• drafting internal directives,

• preparing documentation that protects against fines and sanctions,

• legal consultations and opinions,

• drafting and reviewing contracts,

• representation before courts and administrative authorities,

• expert training for employees or management, including a certificate.

However, our services do not end with legal clauses. Thanks to our broad client base and extensive network of contacts, we can also connect interesting business and investment opportunities. We are happy to listen to your business ideas and help you find the right partners.

The changes in awarding small-scale public contracts are an opportunity to streamline your processes, but also a risk that should not be underestimated. Contact us. We will be happy to discuss your situation with you on a non-binding basis and propose a solution that will protect both your organisation and you personally.