Private Contracting in Panama is governed by the rules of the Civil Code and the Commercial Code, as well as by the Universal Principles of Private Law, which establish their foundation around the rule of the autonomy of will and freedom of contract, thus promoting the free transfer of goods and the provision of services, limited only by public order and morality.
In the case of public contracting -which refers to the purchase of goods and services by the State- local authorities (for example, municipalities) and public companies are governed by Law 22 of 2006 and its amendments. This legal regime establishes the various procedures and conditions to be met in order to participate in public acts, whether they are domestic or foreign entrepreneurs.
In addition, it is worth mentioning Law 93 of 2019 on the Public-Private Partnership Regime (PPPs), which creates the possibility of promoting the development of projects that do not involve, in the short term, an additional budgetary debt for the State.
Our consulting firm, with these experts, aims to help companies work with the State or local authorities, within the framework of public contracts, partnership contracts or calls for tenders. Their role is to guide companies in an often-complex environment, regulated by strict and transparent rules.
Public contract consulting firms are expert intermediaries that help companies navigate the often-opaque world of public procurement. Their objective is to make these collaborations effective, legal and profitable for both parties (company and State), while guaranteeing the general interest.
Since January 1, 2021, Panama's public procurement system requires that bid proposals, for all types of contracts, be submitted electronically in the electronic public procurement system "PanamaCompra".
This electronic procurement system is administered by the Directorate General of Public Procurement (DGCP), which is an autonomous public entity, whose responsibility is to regulate, interpret, supervise and advise on the contractor selection procedures carried out by State institutions.
It should be noted that the Law on Contracts establishes a mechanism for the promotion of small and medium-sized enterprises, through which bidding entities may carry out public acts limiting the participation in favor of national enterprises in the acts of selection of contractors for the construction of works in the Republic of Panama that do not exceed five million balboas (B/.5,000,000.00). Unless one of the candidates for participation invokes the content of an international agreement or treaty in force between his or her country of origin and the Republic of Panama.
Likewise, the law provides that for small contracts (the accelerated procedure for the acquisition of goods, services or works that do not exceed fifty thousand B/50,000.00 balboas), the participation of the greatest number of local companies will be encouraged, provided that they are natural persons of Panamanian nationality or legal persons that, according to their notice of operation, are domiciled in the municipality where the object of the work of the contract will be performed. who will have preference for the award, provided that it complies with the requirements of the specifications and that the price offered does not exceed 5% of the amount of the cheapest proposal submitted by a company domiciled in a municipality other than the one in which the work is carried out; If it is higher, the one who offers the best price will be chosen.
Panama also promotes the participation of foreign companies in public procurement, in accordance with the principle of free competition, as a mechanism to ensure the efficiency and quality of projects or the supply of goods and services.
Support in calls for tenders
Management of existing contracts
Legal advice and compliance
Contracts with the State represent significant opportunities (e.g. construction of infrastructure, provision of public services, technologies), but the procedures are rigorous:
Our firm, Corbetti Lawyers & Investments Firm, acts as a guide to avoid costly mistakes and maximize the chances of success.
Our law firm has the experience and knowledge necessary to represent our clients in contractual processes, whether public or private, from the preliminary preparation stage, the preliminary negotiations, the pre-contractual stage, the presentation of proposals, the drafting of documents and contracts and, finally, during the execution of the various acts that make up the stages of the execution of the contract and its execution.