{"id":15234,"date":"2025-11-06T14:53:28","date_gmt":"2025-11-06T13:53:28","guid":{"rendered":"https:\/\/araujobenetti.com\/public-procurement-alert-royal-decree-55-2017-on-price-review\/"},"modified":"2026-06-17T14:12:35","modified_gmt":"2026-06-17T12:12:35","slug":"public-procurement-alert-royal-decree-55-2017-on-price-review","status":"publish","type":"post","link":"https:\/\/araujobenetti.com\/en\/public-procurement-alert-royal-decree-55-2017-on-price-review\/","title":{"rendered":"Public Procurement Alert: Royal Decree 55\/2017 on price review"},"content":{"rendered":"<p><strong>Royal Decree 55\/2017, of February 3, which develops Law 2\/2015, of March 30, on deindexation of the Spanish economy<\/strong><strong>.<\/strong><\/p>\n<p>On February 4, it was published in the Official State Gazette (hereinafter, \u201c<strong>BOE<\/strong>&#8220;) Royal Decree 55\/2017, of February 3, which implements Law 2\/2015, of March 30, on deindexation of the Spanish economy (hereinafter, &#8220;<strong>RD 55\/2017<\/strong>&#8220;).<\/p>\n<p>RD 55\/2017 aims to develop Law 2\/2015, of March 30, on deindexation of the Spanish economy (hereinafter, \u201c<strong>Law 2\/2015<\/strong>&#8220;), as well as article 89 of the Consolidated Text of the Public Sector Contracts Law, approved by Royal Legislative Decree 3\/2011, of November 14 (hereinafter, &#8220;<strong>TRLCSP<\/strong>&#8220;), which, in the wording given by the third final provision of Law 2\/2015, conditions the periodic and predetermined review of contract prices to what is provided for in the regulatory development of said Law 2\/2015.<\/p>\n<p>RD 55\/2017 applies to reviews of monetary values \u200b\u200b(commonly known as \u201cprice reviews\u201d) in whose establishment the public sector intervenes, regardless of whether such intervention has its origin in a contract or a standard, and provided that the review is motivated by variations in costs. In this way, revisions of monetary values \u200b\u200bmotivated by considerations other than cost variations are excluded, such as those derived from the application of equity, sanction or deterrence criteria.<\/p>\n<p>The main novelties foreseen in RD 55\/2017 are the following:<\/p>\n<p>(i) First of all, the<u>principles applicable to all reviews of monetary values<\/u>, regardless of whether the review takes place periodically and whether it is predetermined.<\/p>\n<p>Specifically, the principle of referencing costs is established, according to which the review of the monetary value remunerated by an activity must reflect the evolution of the costs incurred to carry out said activity.<\/p>\n<p>Likewise, the principle of efficiency and good business management is developed, which seeks to avoid remunerating unnecessary costs or rewarding inefficient behavior. Thus, only the variations in costs that would have been assumed by an \u201cefficient and well-managed company\u201d can be transferred to prices, such qualities being identified in response to the best practices existing in the sector, and objective indicators of efficiency such as unit costs, productivity or quality at equal prices can be used.<\/p>\n<p>Finally, it is established that, when in accordance with RD 55\/2017, labor costs can be transferred to the revised value, the chargeable increase thereof may not be higher than the increase experienced by the remuneration of personnel serving the public sector, in accordance with the General Budget Laws of the State.<\/p>\n<p>(ii) Secondly, the set of<u>rules applicable to the regime of periodic and predetermined review of monetary values<\/u>. <\/p>\n<p>Thus, article 6 of this regulation establishes a<em>numerus clausus<\/em>of the set of monetary values \u200b\u200bthat can benefit from this periodic and predetermined review regime, based on specific price indices. Three types of securities are included in the aforementioned list: (a) certain regulated securities in the energy sector; (b) on an exceptional basis and with prior economic justification, the income from lease contracts of real estate to which the public sector is a party; and (c) the prices of public sector contracts, under the conditions established in this regulation.<\/p>\n<p>Likewise, article 7 of RD 55\/2017 establishes the principles for establishing the formulas that govern the periodic and predetermined reviews, which may be prepared either by the contracting bodies or by the competent administrative authorities due to the matter. In this sense, it is anticipated that each cost component must be weighted based on its weight in the full value of the activity. Only cost components considered significant may be included in the formulas, meaning those that represent at least 1% of the full value of the activity. The periodic and predetermined reviews will not include variations in financial costs, amortizations, general or structural expenses or industrial profit. In compliance with the principle of referencing costs, the periodic and predetermined review formula must use to approximate each of the cost components an individual price or a specific price index, which must have the greatest possible disaggregation in order to accurately reflect the evolution of said component. Finally, the formulas may incorporate parameters or limits in order to encourage efficient behaviors.<\/p>\n<p>With regard to public contracts, a distinction is made between the regime of periodic and predetermined review of the prices of works contracts and contracts for the supply of weapons and equipment manufacturing of Public Administrations, and the rest of the contracts to which Royal Legislative Decree 3\/2011, of November 14, which approves the consolidated text of the Public Sector Contracts Law (hereinafter, &#8220;<strong>TRLCSP<\/strong>&#8220;).<\/p>\n<p>For the former (and as long as it is provided for in the specifications), the price review may take place using the current general standard formulas, as well as, where appropriate, the monthly price indices of basic materials published by the Ministry of Finance and Public Function. In this way, the review may take place two years after the formalization of the contract and when it has been executed, at least, in 20% of its amount. The contract specifications must detail the applicable review formula.<\/p>\n<p>For the rest of the contracts, prices may only be reviewed using the periodic and predetermined review regime, all without prejudice to the right to economic and financial rebalancing provided for in contract legislation. This price review regime is subject, by RD 55\/2017, to a series of rules: (a) firstly, the review will only be possible after two years from the formalization of the contract and when it has been executed, at least, 20% of its amount; In public service management contracts, the condition relating to the percentage of execution of the contract will not be enforceable for the purposes of proceeding to the periodic and predetermined review; (b) secondly, it is necessary that the contract investment recovery period be equal to or greater than five years; and (c) it is necessary that the contract specifications provide for the review regime, which must be designed in accordance with the principles of efficiency and good business management. The review cannot take place after the payback period of the contract.<\/p>\n<p>(iii) The set of<u>governing rules of the regimes of non-periodic review and non-predetermined periodic review of monetary values<\/u>. Specifically, the inclusion of labor costs in these reviews is allowed, establishing the same limit in this regard as in the case of the periodic and predetermined review regime. On the other hand, the content of the economic report that must accompany each of the reviews carried out under the aforementioned regimes is regulated.<\/p>\n<p>RD 55\/2017 came into force the day after its publication in the BOE, that was, February 5, 2017.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Royal Decree 55\/2017, of February 3, which develops Law 2\/2015, of March 30, on deindexation of the Spanish economy. On February 4, it was published in the Official State Gazette (hereinafter, \u201cBOE&#8220;) Royal Decree 55\/2017, of February 3, which implements Law 2\/2015, of March 30, on deindexation of the Spanish economy (hereinafter, &#8220;RD 55\/2017&#8220;). RD [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[137],"tags":[],"class_list":["post-15234","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Public Procurement Alert: Royal Decree 55\/2017 on price review<\/title>\n<meta name=\"description\" content=\"Royal Decree 55\/2017, of February 3, which develops Law 2\/2015, of March 30, on deindexation of the Spanish economy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/araujobenetti.com\/en\/public-procurement-alert-royal-decree-55-2017-on-price-review\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Public Procurement Alert: Royal Decree 55\/2017 on price review\" \/>\n<meta property=\"og:description\" content=\"Royal Decree 55\/2017, of February 3, which develops Law 2\/2015, of March 30, on deindexation of the Spanish economy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/araujobenetti.com\/en\/public-procurement-alert-royal-decree-55-2017-on-price-review\/\" \/>\n<meta property=\"og:site_name\" content=\"Ara\u00fajo &amp; 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