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Does the customer have the right to terminate the contract with the supplier unilaterally and is it necessary in this case to report on its performance? What are the steps involved in reporting and what nuances of this process should be kept in mind? We invite you to learn about all this from Yuliia Sytnyk, a public procurement specialist at SmartTender.

How Is the Contract Terminated?

For the customer or supplier to be able to terminate the purchase agreement unilaterally, the document must contain an appropriate clause where such a possibility is provided. Otherwise, if any of the parties does not agree to terminate the agreement, this issue is resolved only through the courts.

If the customer terminated the contract with the supplier because the supplier improperly fulfilled their obligations, then such an organizer has the right to exclude this participant from their purchases for three years. This helps to reduce the risk of cooperation with unscrupulous suppliers in the future and does not waste time on repeated tendering. The corresponding norm is enshrined in the Law "On Public Procurement".

Rules for Submitting a Report on the Contract Performance

First of all, the state customer reports on the implementation of the agreement to show that the need was or was not met as a result of the tender. Even though not every concluded contract is fulfilled, the recording of such data is important for the analysis of purchases. Therefore, the organizers are required to report on any of the three options for cooperation with the supplier:

- if the contract has been executed in full;
- if the contract has expired;
- if the contract is terminated.

It is necessary to report on the fulfillment of the contract within 20 working days from the date of the occurrence of any of these conditions.

How to Report on the Performance or Termination of the Contract on SmartTender.biz?

To mark the fulfillment of the contract or its termination on the electronic platform SmartTender.biz, follow these steps:

1. Find the required agreement and click "Execution of the agreement".

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2. Select "Contract performance report" or "Terminate the contract" and fill in the appropriate fields (explanations below).

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Actions when Selecting the "Report on the Contract Execution" Item

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If you want to report on the completed contract, follow these steps:

1. Enter the number of payments under the agreement – "Amount paid" (full) and "Amount paid without VAT". It is impossible to deposit an amount equal to zero when the contract is "executed". If there is no payment for the tender, use the "termination" of the contract.
2. Change the "Contract Period" if necessary.
3. If necessary, attach documents by clicking the "Select files" button.
4. If you are purchasing a product, publish information about the country of origin of the product for each item of the purchased item.
5. To finally close the contract or make notes about the execution, click "Confirm" (the "Cancel" button – exit without completing the "execution of the contract").
6. Apply QES/IES. Please note! It is possible to sign the decision with QES/IES only in this way and at the moment. After that, you will not be able to sign the execution of the contract. If you close the window without applying a signature, you will return to the “Contract performance report” window.

After all the actions, the status of the contract will change to "Completed", and you will see the updated data.

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After that, the ability to print the Contract Performance Report will appear in Prozorro.

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Actions when Selecting the "Terminate the Agreement" Item

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If you want to report the termination of the contract, follow these steps:

1. Enter the number of payments under the agreement – "Amount paid" (full) and "Amount paid without VAT" (you can enter an amount equal to zero).
2. Describe the reason for terminating the contract.
3. Change the "Contract Period" if necessary.
4. If necessary, attach documents by clicking the "Select files" button.
5. If you are purchasing a product, publish information about the country of origin of the product for each item of the purchased item.
6. To finally close the agreement or make a note of termination, click “Confirm” (the “Cancel” button – exit without completing the “termination of the agreement”).
7. Apply QES/IES. Please note! It is possible to sign the decision with QES/IES only in this way and at the moment. After that, you will not be able to sign the termination of the contract.

After all the performed actions, the status of the agreement will change to "Terminated", and you will see the updated data.

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After that, the ability to print the Contract Performance Report will appear in Prozorro.

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I hope you find the material in this article useful. If you have any questions, you can always contact the managers of our site.

May your purchases be always successful! Win with SmartTender!