How to correctly draw up an agreement to extend the validity of a government contract

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Published: 05/05/2019

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The validity period of the government contract and the period required for the supplier to fulfill its obligations under the contract are among the basic conditions of the government contract under 44-FZ. In practice, situations arise in which the supplier or contractor cannot complete the work or deliver the goods on time due to objective circumstances beyond their control. In this case, it may be necessary to extend the terms of the contract.

• Period of execution
• Is it possible to extend the validity period?
• Liability for illegal extension

According to the current provisions of the law, the duration of the contract is not an essential condition of the government contract according to the norms of 44-FZ. Moreover, information about validity periods is included in the contract at the discretion of the customer.

Contract or employment agreement?

There has been a long debate about which is better: a contract or an employment contract. But you need to understand that the answer to it depends on what position you look from.

If we are looking for advantages in the employee’s ability to resign, then the contract in this case is preferable, since the employee has the right to resign one month after notifying the employer of his resignation. But you need to understand that the employer is notified by submitting and registering an application.

• You can resign under a contract without the employer's approval only at the end of the contract.

If we look for advantages in the matter of dismissal at the request of the employer, then the advantage goes to the contract, since the employer may simply not renew the contract when its term comes to an end. Naturally, it is necessary to correctly and timely notify the employee of its completion.

• It will be much more difficult for an employer to fire an employee under an employment contract.

If you are looking for advantages in payment, then a contract here also looks more attractive, because Under the contract, the employee is entitled to a contractual increase in salary (no more than 50%). An employee registered under a contract is not paid such a bonus.

If you look for advantages in the rest mode, then again the contract has an advantage, because The employee is provided with incentive vacation days. Workers are given 2 incentive days for vacation, and specialists (managers) are given 5 days.

Extension due to decreased funding

If the amount of funding was reduced to the customer, then the government institution, within the framework of clause 6 of Art. 161 BC, clause 6, part 1, art. 95 44-FZ agrees with the supplier on a new deadline for the execution of the contract. And other categories of customers, for example, budgetary institutions, by agreement with the supplier, change the payment time. This is allowed for certain types of contracts that contain a condition on the possibility of changing them due to a decrease in funding.

What happens when the contract expires?

As stated above, a contract is a fixed-term agreement, i.e. limited by time frame. Consequently, upon expiration of the period for which the contract was concluded, the contract either terminates, which leads to the dismissal of the employee, or the employment relationship continues.

In this case, three situations are possible:

1. contract extension;
2. conclusion of a new contract;
3. renegotiation of the contract.
4. conclusion of an employment contract.

How to extend an agreement under 223-FZ

The extension of the contract is not prohibited by Law No. 223-FZ. Customers working under this law independently establish the terms of purchase in their position.

Extension of the contract term under 223-FZ is possible if:

• the likelihood of an extension is provided for in the contract;
• extending the period does not change other essential conditions except volume and price (Letter of the Ministry of Economic Development No. D28i-1993 dated March 24, 2017).

In this case, it is not necessary to make another purchase. The extension is completed correctly if the customer placed all changes in the Unified Information System on time (Resolution No. 1132 of October 31, 2014).

To change the validity period of the contract with an additional agreement and not receive claims from government agencies, fill out this document correctly. We have prepared samples for drawing up additional agreements for you.

Dismissal due to termination of contract.

The procedure for dismissing an employee at the end of the contract is as follows:

1. Drawing up a notice - one month before the expiration of the contract, the enterprise’s personnel service must notify the employee of the employer’s reluctance to continue the employment relationship with him. For this purpose, the HR department employee prepares a corresponding notification. The form of this notification is optional.
2. Submitting a notification for signature – the notification is then submitted for signature to the head of the organization, since without the signature of an authorized person it has no legal force.
3. Registration of notification - the notification must be registered in the notification log, which is maintained in the human resources department of the organization. The notification includes the registration date and number.
4. Familiarization of the employee with the notice - after the notice is signed and registered, it is presented to the employee for signature. This must be done at least 2 weeks before the end of the contract. Therefore, upon review, the employee must sign, decipher the signature and put the date of the notification in his own hand.
5. Issuance of an order - the last stage is devoted to the issuance of an order of dismissal. The date of issue of the order must correspond to the date of dismissal and the last day of employment of the employee. If the date of dismissal falls on a weekend, then the order must be issued on the date of the last working day before dismissal.

Contract extension: three ways to continue cooperation

For example, a landlord decides to significantly change the content and structure of a standard lease agreement. It excludes a number of provisions from it and adds new ones: it revises the structure of the rent, changes the methods of ensuring the fulfillment of obligations, adds new obligations of the tenant, changes the terms of liability, etc. In this situation, the interests of the lessor determine the content of the new contract. Continuing cooperation on the same terms does not suit him. There are contracts that extend their validity without any special indication of this in the text. These include energy supply contracts. The contract is concluded for a certain period. If before the end of its validity period neither party declares termination or changes in conditions, then the contract is considered extended for the same period.

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Contract renewal procedure

If the employer is not ready to part with the employee, the contract is extended. The procedure is partially similar to the procedure preceding the dismissal of an employee at the end of the contract.

1. Drawing up a notice - an employee of the organization’s personnel department draws up a notice of renewal. The text of this notice is slightly different from the contract termination notice. Firstly , the notice contains a request to extend the employment relationship. Secondly , you are asked to inform about your decision no later than two weeks before the end of the contract.
2. Submitting a notification for signature – at this stage, the notification is signed by the manager or an authorized person.
3. Recording of Notification – Notification is recorded in a journal maintained by the Human Resources Department. The notification contains the registration date and number.
4. Familiarization of the employee with the notification - the employee must sign the notification of familiarization (the signature is decrypted) and put the date in his own hand. The date must be no later than 1 month before the last day of the contract.
5. Consent of the employee - in the same notification, the employee writes in his own hand that he agrees to extend the contract and signs, deciphers it and puts the date. The date must be no later than 2 weeks before the last day of the contract.
6. Signing the contract - a signature and a transcript of the signature are placed in the appropriate column in the contract.
7. Issuance of an order – a corresponding order is issued to extend the contract. The date of issue of the order is not so important. The only condition is that the order is recommended to be issued no later than the date when the employee began work after the contract extension. For example, if the contract was concluded for 1 year from 03/05/2016 to 03/04/2017, then an extension order must be issued no later than 03/05/2017.

Prolongation based on a decision of a government agency

The decision to change the deadline is made by the authority if the following requirements are met:

1. It is impossible to fulfill the contract within the period stipulated by it due to circumstances beyond the control of the parties.
2. The agreement complies with a number of conditions that are specified in clauses 2-4, part 1, art. 95 44-FZ and clause 1 of Government Decree No. 1186 of December 19, 2013. We collected them in a table.

Based on the decision made by the authorized body, the customer enters into an agreement with the supplier to change the contract execution period. This is indicated in paragraphs 2-4 of Part 1 of Art. 95 44-FZ.

Terms of contract renewal

When renewing a contract, you need to remember that the maximum contract period is 5 years. Consequently, the contract can be extended under such a condition that the total duration of its validity with all extensions is no more than 5 years.

At the same time, there is a misconception that if the maximum contract period is 5 years, this means that it can only be extended 4 times. Actually this is not true. The contract may well be extended either once or many times.

For example, a contract concluded for 1 year can be extended for 4 years at once. Then after its completion it will be necessary to conclude a new contract.

But also, when hired, an employee can sign a contract for only 1 year, and then extend it for another 1 year, then with the consent of the employee for 3 months, then for 5 months, and so on, until the total contract period is 5 years.

After this, a new contract will need to be concluded. However, the number of such extensions is not limited by law. The only mandatory condition is that the extension can be carried out no more than a maximum period of 5 years.

Extension in procurement of construction works

In procurements for construction, reconstruction, major repairs, demolition of a capital construction project, or work to preserve cultural heritage sites, the contract term is changed if, due to the fault of the contractor, it was not completed within the stipulated period or circumstances beyond the control of the parties arose.

Don't forget to change the design documentation.

In this case, the time for execution of the contract is extended once for a period that does not exceed the initial period for fulfilling obligations. If the work is not completed on time due to the fault of the contractor, the date can be changed if the contractor:

1. Fulfilled the customer's demands for payment of penalties (fines, penalties) (if they were presented).
2. Provided security for the execution of the contract for a new term.

If you extend the contract in other cases, you will be fined under Part 4 or Part 5 of Art. 7.32 of the Administrative Code for 50,000 rubles - for officials and 500,000 rubles - for legal entities.

Professional lawyer

4. According to paragraph 1-1 of Decree No. 180, a new contract can be concluded not only if the maximum period of the previous contract expires, but also if the employee is transferred with his consent to another job by agreement of the parties. In this case, an application for concluding a new employment contract is not drawn up, and the employee’s desire to enter into a new contract is reflected in the application for transfer to another job. If, when concluding a new contract, there is a change in significant working conditions in accordance with Article 32 of the Labor Code of the Republic of Belarus, then notification of the conclusion of a new contract must be at least one month in advance. Any changing conditions should be stated in the notice itself.

21 Dec 2021 marketur 155

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According to Art. 39 of the Labor Code, if after the expiration of the employment contract the employment relationship actually continues and neither party has demanded its termination, then the employment contract is considered to be continued for an indefinite period. Thus, if, after the expiration of the employment contract, the employment relationship between the employee and the employer actually continues and neither party has demanded its termination, the employment contract is transformed into an employment contract for an indefinite period. Accordingly, if the employer misses the expiration date of the contract, the dismissal of the employee under clause 2 of Art. 35 of the Labor Code (due to the expiration of the employment contract) is illegal. We emphasize that if an employee asks the employer to dismiss him due to the expiration of the contract, the employer is obliged to satisfy this request of the employee and terminate the employment relationship with him, formalizing their termination in the proper manner: issue an order to dismiss the employee under clause 2 of Art. 35 of the Labor Code, familiarize the employee with it against signature, make an entry about the dismissal in the employee’s work book, and also make the final payment and issue the employee his work book on the day of dismissal (the last day of work).

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