Australian companies interested in working on 2014 Brazil World Cup and Rio 2016 Olympics projects should find their path into the market a little simpler from today on following the approval of a range of changes to the laws governing tenders in the country.
The amendments, passed overwhelmingly by a margin of 276 for to 76 against, are specifically for World Cup, Olympics and 2013 Confederations Cup projects, and involve a range of areas across the tender process.
The most important change for companies interested in submitting bids or pitching their specialty to the eventual tender winner is a requirement that the basic and executive projects as well as the actual construction work be undertaken by the same group; the old law required separate tenders for each of these stages, a drawn-out process in itself but also one that invariably leads to challenges amongst the range of groups involved at different phases, misunderstandings amongst tender winners handling separate aspects of the project and related problems with accountability.
Other changes such as a payment schedule pinned to the realisation and performance of the project and the possibility of post-negotiation with the best-qualified bidder to achieve even lower prices are also included.
For Australian groups looking to enter the Brazilian market through public works, the simplified tender process will create better pathways free of legal requirements, hidden problems and excessive government involvement.