Redefining public project obligations – Esquível Advogados

Increasing budgetary pressures mean that there is a need for continued creativity among financiers, investors and concessionaires as Portugal’s Government seeks to stop, reassess and in some cases renegotiate existing contracts, says José Luís Esquível, Founding Partner of Lisbon projects boutique Esquível Advogados.

“Parties have to be aware that while many project tenders may have started, and in some cases the concrete already begun to be poured, the State can no longer afford to comply with all of its commitments and so parties to projects contracts need to consider their positions.”

Dialogue between all the signatories to an agreement is therefore essential in order to ensure that each understands the relative financial, contractual and even political pressures and risks being faced, he says.
“In such a scenario, nothing is fixed. Everything is up for negotiation or renegotiation and this is becoming evident in the extension and revision of contract terms, time frames and even payment schedules.”

Contracts previously entered into may therefore begin to change shape, says Esquível. Parties need to pre-empt issues before they arise and to think strategically about any impact this may have on these and other operations and commitments.

“The question to be asked is, ‘what would happen if the terms of an agreement were amended?’; will it leave you in a better or worse position?” This is particularly so when it comes to planned construction or repair works, says Esquível.

“There is always the option to fight, through litigation or arbitration, but often the Administration needs help to confront and overcome issues and those parties that pro-actively present credible alternative scenarios are being perceived more favourably by the State.”

Redefining public project obligations – Esquível Advogados

Garcia-Sicilia

iberianlawyer.com

Iberian Lawyer, is a monthly digital magazine, published by LC Publishing, available in Spanish and English. It represents the main source of information in the legal business sector in Spain and Portugal. The digital magazine – and its portal – address to the protagonists of law firms and in-house lawyers. The magazine is available for free on the website and on Google Play and App Store.

In every issue of the magazine, you will find rankings of lawyers, special report on trends, interviews, information about deals and their advisors.

For further information, please visit the Group’s website www.lcpublishinggroup.com

Iberian Lawyer
Registered office: C/ Manuel Silvela, 8 - Oficinas 1 Dcha 28010 Madrid España

Copyright 2022 © All rights Reserved. Design by Origami Creative Studio

SHARE

Share on linkedin
Share on twitter
Share on facebook
Share on whatsapp
Share on email
Share on telegram