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Reducing bureaucracy in Saxony-Anhalt: Will construction contracts now become easier?
Saxony-Anhalt is planning reforms in economic policy to reduce bureaucracy and make construction contracts easier.
Reducing bureaucracy in Saxony-Anhalt: Will construction contracts now become easier?
The black-red-yellow coalition in Saxony-Anhalt is taking a decisive step towards reducing bureaucracy and simplifying the awarding of construction contracts. Loud MDR A bill to amend the collective bargaining and procurement law was submitted to the state parliament by the CDU, SPD and FDP parties.
The main aim of this reform is to temporarily raise the procurement thresholds. In particular, documentation requirements should be eliminated for services up to a value of 221,000 euros. For construction work, the threshold will be raised from 120,000 euros to around 5.5 million euros.
Criticism and challenges
Business representatives criticize the existing documentation requirements. Many craft businesses no longer apply for public contracts because the bureaucratic effort is considered to be too high. Michael Truthmann, managing director of a construction company, expressed concerns that the bill still contains numerous bureaucratic hurdles, particularly in the area of pay.
This means that many companies switch to other contracts instead of concentrating on public tenders because of the high effort involved. These critical voices are also supported by the German Trade Union Confederation (DGB), which sees increasing the thresholds as problematic because it would only cover ten percent of contracts awarded.
Positive feedback and political reactions
Economics Minister Sven Schulze, on the other hand, reports positive feedback from both municipalities and companies regarding the planned changes. FDP parliamentary group leader Andreas Silbersack describes the measures as urgently needed relief for medium-sized businesses and crafts.
On the other hand, the opposition, especially the AfD and the Left, are dissatisfied with the draft law and are calling for a comprehensive hearing in the consultation process. The bill is now in parliamentary committees, where further discussion is expected.
Federal legislation and other challenges
Smaller orders should also be awarded as direct contracts without a complex procurement process, which makes it easier for many companies. At the same time, however, the Central Association of the German Construction Industry (ZDB) points out that the new tender conditions, particularly with regard to the documentation requirements, could lead to an additional burden for companies. The ZDB's concerns include the risk that large corporations will be given preference in public contracts and that the existing bureaucratic burdens will not be reduced.