ISSUES IN IMPROVING THE MECHANISM FOR RESOLVING DISPUTES ARISING FROM PUBLIC PROCUREMENT CONTRACTS

Abstract

Public procurement contracts create many disputes, and the way these disputes are resolved affects both the state budget and business confidence. This study examines four practical problems in the national mechanism and proposes targeted solutions drawn from foreign practice. The first problem is the absence of an automatic standstill period between the award decision and contract formation, which limits the procedural interval available before the contract becomes binding. The second problem concerns the effectiveness and enforceability of the existing review mechanism, although it provides for the suspension of the procurement procedure once a complaint has been accepted for consideration. The third problem is institutional. The involvement of electronic system operators in the review framework may raise concerns about the institutional independence of the complaint review mechanism. The fourth problem is that court proceedings are slow and the state duty is costly, while mediation and arbitration remain underused. The research uses comparative, formal legal, systemic, and statistical methods, and it compares the European Union, the Republic of Kazakhstan, and the Republic of Korea with the national framework. The conclusions propose a mandatory standstill period, improved effectiveness and monitoring of the review commission, clearer operator liability, and active promotion of mediation and arbitration.