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The Federal Labour Law was recently amended for the first time in more than 40 years. One of many relevant aspects of the new law is the inclusion of new regulations for outsourcing services. Every company in Mexico using the services or work of a third party must now observe several new rules, each of which presents its own challenges and potential risks.
The provision of goods and services to public authorities is a lucrative but competitive activity, in which understanding the intricacies of legislation may provide a crucial competitive advantage. Although certain labour-related aspects are often overlooked, they are a crucial strategic element of a well-prepared bid.
The approval of a new law on public-private partnerships (PPP) is a great step forward for infrastructure development in Mexico, taking PPPs beyond the bounds of traditional public procurement legislation. It is expected to promote an increase in infrastructure construction and, as a consequence, an increase in the placement of development capital certificates.
Budget limitations are affecting Mexico's ability to maintain its existing infrastructure and to undertake new projects. The country's aim is to become one of the world's most developed countries by 2030, but infrastructure is a bump in the road to success. Public-private partnerships - and effective legislation on the processes involved - may be the way to get back on track.
Recent initiatives for legislation to address corruption in government contracting reflect a demand for a clear framework for the large infrastructure projects being developed in the telecommunications and energy industries, including oil and gas. They create effective financial deterrents and places significant responsibility on the public as a key instrument in identifying corrupt procurement practices at federal level.
For companies that wish to participate in tender processes, the Regulation on the Public Works and Related Services Law is crucial. Among other things, it sets out conditions for the participation of microenterprises and small and medium-sized companies, and provides that a participant may be disqualified from future processes for a bad-faith appeal against the award of a contract to another bidder.