The exercise of the prerogatives power of the administrative bodies in administrative contracts in the Kingdom of Spain

Abstract

          The exercise of the prerogatives power of the administrative bodies in administrative contracts in the Kingdom of Spain is a power provided in the Public Sector Contracts Act of 2017 (Ley 9/2017, de 8 de noviembre, de Contratos del Sector Público). It is also a principle enshrined in the Constitution of the Kingdom of Spain. This principle is aligned with the spirit of European Directives No. 2014/23/UE and No. 2014/24/UE, issued on February 26, 2014. These directives aim to ensure that contracts are carried out in the interests of public services in conformity with the principles of equality and non-discrimination and to secure efficient and cost-effective budget expenditures. Therefore, it is necessary to take into account the need for public services to be carried out continuously and without interruption This may be ensured by granting the administrative authority the authority or prerogative power to perform its functions, particularly in relation to administrative contracts. The provisions of the Public Sector Contracts Act 2017 grants the administrative on the authority or prerogatives to unilaterally govern the administration of administrative contracts which includes preparation of administrative contracts, interpretation, contract review, temporary suspension of the contract, and termination of contract. The administration may exercise such power if it is in the public interest or may exercise the prerogatives due to unforeseen circumstances or the necessity to make reasonable changes to the contract, even if not provided for by law. Nonetheless, despite having the prerogatives to amend or terminate the contract. For the public benefit if such action disrupts the economic balance in the contract, the administration must provide compensation any damages resulting from any unforeseen circumstances that impair the other party’s contractual rights, whether due caused by the administration or other causes or conditions. Ultimately, should there be any dispute regarding the rights in the contract, the contracting party may file a plaint with the court.