Easing Contract Awarding in Saxony-Anhalt: A Simplified Approach
Easing distribution of orders in Saxony-Anhalt is the new focus - Streamlining Contract Award Processes in Saxony-Anhalt as Proposed by the Commission
Get ready for reduced red tape in Saxony-Anhalt as the government looks to make life easier for municipalities when awarding construction and service contracts. The CDU, SPD, and FDP coalition in Magdeburg have proposed amendments to the Tariff Compliance and Awarding Act to achieve this.
Economic growth and boosting municipalities, says Ulrich Thomas, economic policy spokesman of the CDU state parliament faction. The main thrust of the reform is a temporary increase in the threshold values for awarding contracts. As per Thomas, paperwork will be eliminated for services up to €221,000, and for construction services, the threshold will rise from €120,000 to approximately €5.5 million. "This lets the work start fast," states Thomas.
The criticism of documentation requirements
Recent criticism has stemmed from the business sector over cumbersome regulations and paperwork. "Many small businesses in my circle of friends, like painters, electricians, and carpenters, no longer even apply for public tenders," says Thomas. The aim is to simplify and expedite procedures.
However, not all issues are addressed by the planned changes. "Some topics in the draft are irrelevant to construction itself," says Michael Truthmann, managing director of the construction company Industry Building Wernigerode, to the German Press Agency. Besides remuneration questions, Truthmann explains that a great deal of paperwork is created that is subsequently overlooked.
Companies switching to other tenders?
Truthmann's company operates across various federal states, and he notes that the differences in planning are substantial. A uniform national regulation would ease planning preparation. In Saxony-Anhalt, it appears that construction companies may opt for other tenders instead of applying for public tenders due to the effort involved, he adds. "It would be great if we could focus more on the essence of construction," he remarks.
The German Trade Union Confederation (DGB) also criticizes the plans. "The state government is using all opportunities to undermine the Tariff Compliance and Awarding Act: The threshold values for applying the law are increased so much that only ten percent of contract awards are covered," explains DGB state chairwoman Susanne Wiedemeyer.
Economic Minister Sven Schulze disagrees. According to Schulze, there has been positive feedback from both municipalities and businesses for the new awarding act.
FDP faction leader Andreas Silbersack stresses that the changes are a much-needed break for the middle class and craftsmanship. It's about channeling available money onto the streets.
Holger Hoevelmann (SPD), the member of parliament, supports the reform. Given the planned investments in infrastructure in the coming years, the current threshold values would be a bottleneck. Increasing these values would enable the funds to be utilized rapidly, he asserts. "And our local economy benefits in no small way," says Hoevelmann.
Controversy in debate
Three years ago, when the procurement law was reformed, critics warned that the regulations would result in more bureaucracy. "No one listened to us," laments the economic spokesman of the AfD faction, Matthias Lieschke.
The Left is also displeased. "We reject this legislation outright," asserts the economic spokesman, Wulf Gallert. This will effectively nullify the procurement law. The parliamentary business manager of the Greens, Olaf Meister, calls for a comprehensive hearing of companies, trade unions, and municipalities in the further consultation process. The bill will now be discussed by legislative committees.
- Saxony-Anhalt
- Magdeburg
- Economic Policy
- CDU
- SPD
- FDP
- Municipality
- Contract Awards
- DGB
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The revised act might clarify processes, potentially reducing the amount of documentation required by municipalities when awarding contracts. However, new regulations could introduce more transparency requirements, leading to increased documentation. Opposition parties argue that such changes might increase bureaucracy, while the government maintains that there has been positive feedback from various stakeholders. The final outcome, given the ongoing debate and consultation process, remains uncertain. Consult local government announcements or legal analyses focused on Saxony-Anhalt for precise details on the impact of the proposed amendments.
- The proposed amendments to the Tariff Compliance and Awarding Act in Magdeburg, Saxony-Anhalt, aim to simplify procedures for contract awards, reducing red tape and eliminating documentation for services up to €221,000 and construction services up to €5.5 million.
- The revised act in Saxony-Anhalt, if enacted, may target a reduction in documentation requirements, but there are concerns that new regulations could introduce increased transparency requirements, potentially leading to more paperwork.
