INTRODUCTION – REASONS AND OBJECTIVES OF THE AMENDMENTS
The current regulatory framework governing public procurement in the Republic of Croatia consists of the Public Procurement Act (Official Gazette No. 120/2016), applicable since 1 January 2017, and the Act on Amendments to the Public Procurement Act (Official Gazette No. 114/2022), in force since 11 October 2022. This legislative framework represents the fundamental system of rules regulating public procurement procedures conducted by public and sector contracting authorities, with the aim of concluding contracts for the procurement of goods, works and services, framework agreements, and the implementation of design contests, while ensuring effective legal protection for participants in such procedures.
The Public Procurement Act is fully harmonised with the relevant legal acts of the European Union, in particular with the directives governing classical and sectoral public procurement, legal protection in public procurement procedures, and special procurement regimes in the field of defence and security, including the most recent amendments to EU threshold values.
In October 2025, the Ministry of Economy published a Draft Proposal of the Act on Amendments to the Public Procurement Act, and the public consultation on the draft is still ongoing. Consequently, none of the amendments discussed in this article have yet entered into force.
As explained in detail by the Ministry of Economy in the introductory part of the draft proposal, the application of the Act in practice has revealed certain normative ambiguities and shortcomings, particularly regarding the definition of an “inadmissible tender”, the institute of conflict of interest, grounds for exclusion of economic operators, as well as the conduct of and legal protection in public procurement procedures. Inconsistencies between individual statutory provisions have led to legal uncertainty in practice, necessitating more precise regulation and the elimination of divergent interpretations.
In addition to normative clarifications, a significant driver of the amendments is the need for further strengthening and modernisation of the electronic public procurement system. The digital transformation of public procurement, encouraged by EU legislation and national strategic documents, is aimed at increasing transparency, efficiency and analytical capacities, while reducing the administrative burden on contracting authorities and economic operators through digitalisation and automation of business processes.
In this context, the amendments create the legal preconditions for the full functionality of the new Electronic Public Procurement Classifieds of the Republic of Croatia (EOJN RH), the expansion of its digital capabilities, and the application of new standard forms for publication of notices in accordance with European Commission implementing regulations. The objective is to further shorten the duration of procurement procedures, improve access to information, and ensure timely and efficient publication of procurement notices at both national and EU level.
An important segment of the amendments also relates to the alignment of value thresholds with inflationary trends, strengthening mechanisms for preventing conflicts of interest and corruption, increasing transparency of contracts concluded under exemptions, and improving the institute of prior market consultation. Furthermore, the amendments seek to reduce administrative burdens, facilitate access to legal remedies through reduced appeal fees, and enhance the efficiency of appeal proceedings, including the introduction of expert evidence and full digitalisation.
Below we outline some of the key amendments, following the actual order of the articles in the Act for easier reference.
OVERVIEW OF KEY AMENDMENTS
Article 12 – Increase of Value Thresholds for the Application of the Act
Previous regime: The existing value thresholds increasingly resulted in the application of formal public procurement procedures even where this was no longer proportionate to the actual value and complexity of the procurement, particularly in light of inflation and rising market prices.
Amendment: To align the Act with inflation and current market conditions, the value thresholds have been increased. The Act will no longer apply to the procurement of goods and services and design contests with an estimated value below EUR 35,000, nor to works with an estimated value below EUR 90,000.
Accordingly, Article 12(1) is amended as follows:
point 1(a): EUR 26,540 → EUR 35,000
point 1(b): EUR 66,360 → EUR 90,000
point 2(a): EUR 126,080 → EUR 143,000
point 2(b): EUR 530,880 → EUR 700,000
This significantly reduces the number of procedures subject to the Act, enabling more flexible and efficient procurement of lower-value contracts while retaining formal procedures for procurements of greater financial and market significance.
Article 15 – Mandatory Use of EOJN RH for Simple Procurement
Previous regime: Simple procurement was regulated by internal rules of contracting authorities, without a statutory obligation to conduct such procedures through EOJN RH, resulting in limited transparency.
Amendment: A new paragraph 4 introduces the obligation to conduct simple procurement publicly via the EOJN RH module for procurements exceeding EUR 15,000 for goods and services and EUR 35,000 for works. This significantly enhances transparency and represents an important anti-corruption mechanism, while also increasing market visibility for lower-value procurements.
Article 81 – Clarification of Procedures in Cases of Conflict of Interest
Previous regime: Although aimed at preventing conflicts of interest, the provisions lacked clarity regarding deadlines, obligations, and consequences.
Amendment: Article 81 now precisely regulates actions upon discovering a conflict of interest. Representatives must recuse themselves within three days, and the head of the contracting authority must appoint a replacement. Where the conflict involves the head of the authority, the procurement procedure must be cancelled.
Article 198 – Mandatory Prior Market Consultation and Extended Duration
Previous regime: Market analysis and prior consultation were generally required but not mandatory, with a minimum duration of five days.
Amendment: Market analysis becomes mandatory, and prior consultation must last at least seven days, improving the quality of procurement documentation and stakeholder input.
Article 210 – Proof of Equivalence
Previous regime: Contracting authorities were required to define equivalence criteria in advance.
Amendment: The obligation to prove equivalence is shifted entirely to the tenderer, while contracting authorities are no longer required to define equivalence criteria in advance. Although logical in principle, this may increase legal uncertainty and disputes in practice.
Article 251 – Mandatory Grounds for Exclusion
Amendment: Citizenship criteria are abolished, and exclusion is linked solely to final criminal convictions, regardless of where rendered. A new mandatory ground for exclusion is introduced: non-payment of wages.
Article 252 – More Flexible Treatment of Tax and Social Contribution Arrears
Amendment: Economic operators may remedy arrears within a minimum of three days after notification. Exclusion does not apply if arrears are below EUR 1,000 or payment deferral is legally granted.
Article 265 – Simplification of Proof Requirements
Amendment: Evidence is now assessed solely based on the state of business establishment, eliminating nationality-based documentation and simplifying cross-border procedures.
Article 314 – Obligation to Publish Contract Amendments
Amendment: Contract amendments made under Articles 315, 318 and 320 must be published in EOJN RH within 30 days, increasing transparency while retaining contractual flexibility.
Articles 403, 403a and 403b – Procedural Preconditions and Expert Evidence
Amendments: A prior warning to the contracting authority becomes a procedural prerequisite for appeals against procurement documentation. Additionally, expert evidence is introduced into appeal proceedings before the State Commission, significantly enhancing decision-making quality in technically complex cases.
Article 406 – Extended Appeal Deadlines in Open Procedures
Amendment: Deadlines are differentiated: 15 days for appeals against procurement documentation, and 10 days for appeals relating to evaluation or award decisions.
Article 416 – Contracting Authority’s Obligations in Appeal Proceedings
Amendment: The deadline for submitting documentation to the State Commission is extended to seven days, and failure to comply now explicitly allows the Commission to decide without such documentation.
Article 418 – Rights of Parties in Appeal Proceedings
Amendment: All parties now have equal rights to submit observations via EOJN RH, ensuring full adversarial proceedings in a digital environment.
Articles 430a and 431 – Reduced Financial Burden and Flexible Cost Allocation
Amendments: Appeal fees are reduced and recalibrated, while the State Commission may decide that each party bears its own costs where the appeal succeeds for reasons unknown to the contracting authority.
CONCLUSION
The proposed amendments to the Public Procurement Act represent one of the most comprehensive reforms since its entry into force in 2017. They address inflation, digital transformation, transparency, efficiency, and improved access to legal protection.
For contracting authorities, the amendments impose higher standards of preparation, stricter deadline management and enhanced procedural discipline. For economic operators and their legal advisers, they introduce both new opportunities and new risks, particularly regarding equivalence evidence, digital communication and cost assessment in appeal proceedings.
Ultimately, the success of the reform will depend on consistent and predictable application in practice. All stakeholders are advised to timely adjust internal procedures, closely monitor the practice of the State Commission and courts, and seek expert legal support where necessary.
Prepared by:
Anja Juršetić Šepčević and Aleksandar Aleksovski
Partners at JURŠETIĆ & ALEKSOVSKI Law Firm Ltd.