Leasing vs. works contract

Sometimes it can be hard to know the difference, and the risk is high. If leasing, its exempted from the rules of public procurement. But if the need is fulfilled with a public works contract, it must be treated in adherence to the rules to avoid any sanctions.

Luckily the European Court of Justice decided on this matter in the case C-537/19. Highlighting the question whether the specifications set out by the tenant were intended to satisfy stipulations that went beyond what a tenant of a similar building might normally require and lead to the tenant being regarded as having exercised a decisive influence on its design.

So, the way forward is to think whether you are behaving like a tenant would normally behave in a similar situation. And if not, whether you have exercised a “decisive influence” on the buildings design. If you have, than you have to follow the procedural rules of public works contracts.

Read the entire case here


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