Subrogation to the initial contractor during the execution of public work

Case law (National) - September 2018
By George Tserkezis, Dr.Jur., Attorney at Law

Administrative Court of Appeals (Ch.D΄ ) Thessaloniki 1124/2018

Contractor’s claim against Minister’s (Urban Planning and Public Works) Decision rejecting his application for its review. Dispute over the execution of a municipal work. Construction of a building and award the concession to the contractor to carry out the exploitation of the building for a definite period of time. Replacement of the concessionaire group of constructors by one of its members upon approval of the contracting authority. Omission of the subrogating company to provide a performance bank guarantee for the building’s exploitation. Jointly and severally liable for providing the guarantee are both the initial concessionaire and the subrogating party (art.39 and 65 L.3669/2008). Withholding of the due guarantee amount from the remaining value of the performance bonds provided by the initial group of constructors.