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What Are Damages for Procurement Breaches (Erstatning, Norway)?
Damages are financial compensation a supplier can claim when a contracting authority has breached the procurement rules and the supplier has suffered a loss as a result. Depending on the case, the claim can cover the cost of preparing the bid or the lost profit on the contract.
What can a supplier claim damages for?
Either the cost of preparing and submitting the bid, known as negative contractual interest, or lost profit on the contract, known as positive contractual interest.
What has to be proved?
That the buyer breached the rules, that the supplier suffered a loss, and that there is a causal link between them. Lost profit requires showing that the supplier would clearly have won had the breach not occurred.
Where is a claim brought?
Before the ordinary courts. KOFA can give an advisory opinion on whether a breach occurred, which is often used as support in a later claim.
