UNCITRAL Model Law on Procurement of Goods, Construction and Services, with Guide to Enactment

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What is it about?

The Model Law on Procurement of Goods and Construction is intended to serve as a model for States for the evaluation and modernization of their procurement laws and practices and the establishment of procurement legislation where none presently exists. The objectives of the Model Law, which include maximizing competition, according fair treatment to suppliers and contractors bidding to do Government work, and enhancing transparency and objectivity, are essential for fostering economy and efficiency in procurement and for curbing abuses. The Model Law is designed to be applicable to the procurement of goods, construction and services. The information presented in the Guide is intended to explain why the provisions in the Model Law have been included as essential minimum features of a modern procurement law.

Why is it relevant?

The decision by UNCITRAL to formulate model legislation on procurement was taken in response to the fact that in a number of countries the existing legislation governing procurement is inadequate or outdated. This results in inefficiency and ineffectiveness in the procurement process, patterns of abuse, and the failure of the public purchaser to obtain adequate value in return for the expenditure of public funds. In several countries, a substantial portion of all procurement is channelled through the public sector. Much of such procurement is in connection with projects that are part of the essential process of economic and social development. Those countries in particular suffer from a shortage of public funds to be used for procurement. It is thus critical that procurement be carried out in the most advantageous way possible. The Model Law may help to remedy disadvantages that stem from the fact that inadequate procurement legislation at the national level creates obstacles to international trade, a significant amount of which is linked to procurement. Disparities among and uncertainty about national legal regimes governing procurement may contribute to limiting the extent to which Governments can access the competitive price and quality benefits available through procurement on an international basis. E. Related Instruments:- Guidelines: Procurement under IBRD Loans and IDA Credits (World Bank, January 1999) - UNCITRAL Model Law on the Procurement of Goods and Construction (New York, 1993). - Government Procurement Agreement (GPA), (WTO, Marrakech, 15 April 1994)

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