Page 17 - Azerbaijan State University of Economics

Philipp Kunz, Richard Pospíšil, Ondřej Kročil: Economic Benefits of The Sustainable Public
Procurement Law

services and works” (OECD, 2018). It accounts for a significant portion of the
money taxed from citizens; therefore, the government must carry it out diligently,
efficiently and with high behavioural standards. Cautious handling of public
procurement not only safeguards the interest of the public but also ensures the
delivery of high-quality services. Furthermore, public procurement ranges from
small works, such as the purchase of routine services and goods to more intense
provisions, for example, formal tendering and contract placements for massive
construction projects.

On the contrary, public procurement law is a set of legislation that controls
purchases by public sector entities. Precisely, this law regulates the purchase of
works, goods, and services by the public-sector entities and some utility sector
bodies (Out-Law, 2013). In law and economics, the public procurement regulation
plays a vital role in ensuring that tendering processes are following the law. It
provides equal treatment and eliminates biases in the tendering processes; thus,
enhances transparency and accountability (Batoev and Schlosser, 2013). In essence,
a tendering process that complies with the law is beneficial to the economy. Total
compliance with the requirements of the law means that, first of all, contracts are
awarded to the most qualified contractors. Also, it is an indication that the conditions
of the agreement will be adhered to; thus, the works, services, and goods provided
by the contractors will be optimum. All the elements mentioned above concerning
the characteristics of a tender process that is in total compliance with the law are
indicators of a sustainable economy. An in-depth analysis of the significance of
public procurement to the economy is demonstrated in this research paper.

1.1. Thesis Statement

Public procurement law is essential for optimal and continuous growth of the
economy of a country.

1.2. Problem Statement

Over the years, officers for their selfish reasons have manipulated procurement
processes severally. In fact, competitive tendering procedures have been dominated
by corruptions and lack of transparency (Ochrana and Pavel, 2013). Procurement
officers liaise with some contractors, whom they award the tenders in exchange for
favours, usually monetary. In other cases, procurement officers grant the bids to
their friends and families as a result of nepotism and in the attempt to offer them
with favours (Worcestershire Health and Care NHS Trust, 2013). All these peculiar
acts by procurement officers call for the need for the adherence to the regulations of
the public procurement law. Awarding a contract to a family member, friend, or any
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