ADMINISTRATIVE | Is it possible to cancel the award after the contract is signed?

On December 14, 2023, in Decision No. 912, the Regional Administrative Court of Brescia (“TAR Brescia”) stated on a fundamental issue: the legitimacy of cancelling the award after the contract was signed. To establish the unlawfulness of the annulment decision after the contract is signed, the Court based its approach on the Decision No. 14/2014 of the Council of State in Plenary Meeting, which had stated that, after the signing of the contract for the awarding of the public works contract, the contracting authority cannot annul the contract because it must use the right of withdrawal. Applying this principle also in the case of the New Public Contracts Code, TAR Brescia stated that the right to cancel the award should be excluded when the contractual relationship is signed afterwards. On other hand, if the award has already been ordered, but the contract has not yet been signed by the parties, the Contracting Authority may proceed to cancel the award decision.

Newsletter n. 92 – January 2024