Protracted disputes threaten public procurement contracts - SEK 900 billion at stake every year
The total value of public procurement in Sweden is approximately SEK 900 billion per year. When public procurement disputes arise, large sums of money are at stake. A new report from the SCC Arbitration Institute shows that these disputes can be resolved on average almost a year faster through arbitration than in court. Improving time efficiency is crucial to ensure that critical public investments are not delayed.
Published 2024-10-21
Public procurement currently accounts for around one third of Swedish public sector spending and includes critical areas such as infrastructure and welfare services. Examples include contracts for the construction of roads and the supply of medical equipment. When disputes over publicly procured contracts drag on, these investments risk being halted or delayed, which can lead to significant economic as well as societal losses. Swift and effective dispute resolution is therefore crucial.
– Protracted public procurement disputes hold back economic growth, increasing costs and creating uncertainty around socially beneficial projects. Therefore, it is crucial to be able to resolve such disputes quickly and efficiently, said Madeleine Thörn, Deputy Secretary General at the SCC Arbitration Institute.
The report also states that construction disputes are resolved in half the time at the SCC compared to the general courts, which is crucial for major infrastructure projects to progress as planned.
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