This Law determines the terms and conditions for awarding public contracts for construction, supplies or services and for conducting design contests by contracting authorities in order to ensure efficiency in the spending of: 1. public funds; 2. funds provided by European funds and programs; 3. funds related to the performance of activities in the water supply, energy, transport and postal services sectors; 4. funds of companies and enterprises that are contracting authorities within the meaning of the law.
Public procurement shall be awarded in accordance with the principles of the Treaty on the Functioning of the European Union (TFEU), in particular those of free movement of goods, freedom of establishment and freedom to provide services and mutual recognition, as well as with the principles arising therefrom of: 1. equality and non-discrimination; 2. free competition; 3. proportionality; 4. publicity and transparency. When awarding public procurement, contracting authorities shall not have the right to restrict competition by including conditions or requirements which give an unjustified advantage or unreasonably restrict the participation of economic operators in public procurement and which are not proportionate to the subject matter, value, complexity, quantity or scope of the public procurement. Objects of public procurement are: 1. construction, including: a) execution or design and execution of construction related to one of the activities under Annex No. 1; b) execution or design and execution of construction; 2. supplies of goods, carried out through purchase, leasing, rental or financial leasing, with or without the right to purchase, as well as all necessary preliminary activities for the use of the goods, such as installation or assembly work, testing of machinery and equipment and others; 3. provision of services.