Recent decisions of Chile’s Supreme Court: can contractors expect a more balanced approach?

If contractors consider their participation in public tenders in Chile, the following reflections are worth noting. First, the disputes arising out of those contracts will be submitted to ordinary courts, which statistically speaking tend to favour the state. Second, contractors should pay particular attention to the written terms of the bid documents. If certain risks have been allocated to them by way of these documents, it is unlikely that the courts would revise or reallocate such risks. Third, the public entities often tend to grant an extension of time for causes not attributable to contractors. However, they deny contractors’ requests for additional costs, and insist that contractors waive their rights to claim cost and damages. Such types of waiver should be resisted by the contractors as, if formally accepted, they will render subsequent court actions unsuccessful.

Recent decisions of Chile’s Supreme Court: can contractors expect a more balanced approach?

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