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A Public Contract Code guides how Danish government bodies and public organizations must handle their purchasing and procurement processes. It sets clear rules for tendering, supplier selection, and contract management when public money is spent on goods, services, or construction work.

These rules align with both Danish procurement law and EU directives, ensuring fair competition and transparent use of public funds. The code helps officials navigate complex purchasing decisions, prevent favoritism, and get the best value for taxpayers' money. It covers everything from small local government purchases to major infrastructure projects, with specific thresholds determining which procedures to follow.

Danish public organizations need to follow the Public Contract Code when spending taxpayer money on goods, services, or construction projects. The code becomes essential as soon as the planned purchase exceeds 500,000 DKK for goods and services, or 3 million DKK for construction work.

Local municipalities, state agencies, and public institutions must apply these rules during their procurement planning phase. This includes preparing tender documents, setting evaluation criteria, and establishing contract terms. The code is particularly important for large-scale projects, framework agreements, and any purchase that might attract international suppliers under EU procurement rules.

• The Danish Public Contract Code comes in three main variations: Basic Procurement Code (for purchases between 500,000 and 1.5 million DKK), Standard Code (for contracts up to EU thresholds), and Extended Code (for large-scale projects above EU thresholds). Each version includes progressively more detailed requirements for competition, documentation, and supplier evaluation.
• Framework Agreement Codes adapt the standard rules for ongoing supplier relationships, while Specialized Codes cover specific sectors like construction, IT services, or healthcare procurement with industry-specific requirements and technical specifications.

• Public Procurement Officers: Lead the implementation of the Public Contract Code in government agencies and municipalities, ensuring proper tender procedures and contract management.
• Legal Departments: Review and adapt procurement processes to comply with both Danish law and EU directives, providing guidance on code interpretation.
• Government Contractors: Must understand and follow the code when bidding on public projects or providing services to Danish authorities.
• Oversight Bodies: Including the Danish Competition Authority and State Auditors, monitor compliance and investigate potential violations.
• Municipal Managers: Responsible for ensuring their departments follow correct procurement procedures in local government spending.

• Project Scope: Define the exact procurement needs, budget limits, and timeline for contract execution.
• Legal Thresholds: Check if your project falls under Danish national rules or EU procurement thresholds.
• Market Research: Analyze potential suppliers and typical market prices for similar goods or services.
• Technical Requirements: Compile detailed specifications that align with both organizational needs and legal standards.
• Evaluation Criteria: Establish clear, objective scoring methods for assessing bids and suppliers.
• Documentation System: Set up a process to track all procurement decisions and maintain transparency throughout.

• Procurement Scope: Clear description of goods, services, or works being procured, including technical specifications and quality standards.
• Selection Criteria: Transparent evaluation methods and minimum qualification requirements for suppliers.
• Tender Procedures: Detailed steps for bid submission, deadlines, and communication protocols.
• Contract Terms: Payment conditions, delivery requirements, and performance metrics.
• Legal Framework: References to relevant Danish procurement laws and EU directives.
• Compliance Requirements: Environmental standards, social responsibility criteria, and data protection obligations.
• Dispute Resolution: Procedures for handling complaints and resolving conflicts under Danish law.

The Public Contract Code is often confused with a Service Contract, but they serve distinctly different purposes in Danish law. While both deal with procurement of services, their scope and requirements differ significantly.

• Legal Framework: Public Contract Code operates under strict government procurement regulations and EU directives, while Service Contracts follow general contract law and commercial principles.
• Transparency Requirements: Public Contract Code demands open tender processes and detailed documentation of selection criteria; Service Contracts can be negotiated privately.
• Compliance Standards: Public Contract Code includes mandatory social, environmental, and competition requirements; Service Contracts have more flexible terms based on party agreements.
• Budget Thresholds: Public Contract Code applies specific monetary thresholds that trigger different procedures; Service Contracts have no predetermined value limits.