Mandatory use of “Glass Gateway” clarified

A recently published amendment to Government Decree 707/2021 (XII.15.) regulating the use of the “Glass Gateway” provides more detailed definitions of the construction activities for which the use of the system is mandatory.

The Construction Monitoring and Data System is an IT system that is part of the wider National Construction Supervisory and Data Reporting System, also known as the Glass Gateway (“Üvegkapu”) in reference to its principal objective of improving the transparency of contractor/subcontractor relationships in the construction industry and preventing undocumented workers from being employed in that industry.

To this end, the Glass Gateway includes a monitoring system that enables persons on construction sites to be traced in real time using IT tools. This also makes it easier to ensure compliance with labour regulations or carry out tax audits.

The provisions introduced by recently published Government Decree 44/2022 (16.II.) (the “Amending Decree”) seek to bring the regulations applicable to the Glass Gateway into line with the definitions provided for in Act CXLIII of 2015 on Public Procurement (the “PPA”).

The Amending Decree states that Government Decree 707/2021 (XII. 15.) (“Glass Gateway Decree”) applies to all construction activities that have an estimated value of HUF 700,000,000 or more without the application of Articles 19 (2) and (3) of the PPA. According to Articles 9 (2) and (3), the estimated value of a project must be determined by adding together the value of the relevant public contracts or their lots.

The purpose of the amendment is to exclude smaller construction projects from the scope of the Glass Gateway Decree so that the use of the Glass Gateway is not mandatory for projects where the estimated value does not reach the HUF 700,000,000 threshold alone, i.e. without adding the value of other public contracts that might be related to it under the PPA.

This is also related to the new paragraph introduced by the Amending Decree, which states that the estimated value of HUF 700,000,000 is to be understood as the value of any contract that is concluded for construction works and related activities to satisfy a specific procurement need, even if such a contract is concluded on the basis of a framework or similar agreement or by applying a dynamic purchasing system. For the purposes of the Glass Gateway Decree, an order placed to meet a specific purchasing requirement is also considered to be such a contract.

The Amending Decree has also added a new Article 10/A to the Glass Gateway Decree, which specifies the cut-off date for the mandatory use of the Glass Gateway. According to the original provisions, the Glass Gateway Decree applies to construction projects for which the public procurement procedures were launched after 1 January 2022.

The Glass Gateway Decree now also applies to contracts that are concluded for construction works and related activities for which the public procurement procedures were launched after 1 January 2022.

Additionally, the Glass Gateway Decree also applies to any contract for construction works and related activities that was concluded in a specific public procurement procedure after the Amending Decree took effect, i.e. 19 February 2022, even if it was concluded under a framework or similar agreement or a dynamic purchasing system whose procurement procedure was concluded before or was ongoing on 1 January 2022.