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What Is a Sanction Fee (Seuraamusmaksu, Finland)?
This is a Finnish procurement term. A fee the Market Court can impose on a contracting authority, for example for an unlawful direct award.
When can a sanction fee be imposed?
Mainly for unlawful direct awards, and where a contract has been signed in breach of the standstill period or an enforcement prohibition. It is used where the contract is left standing despite the breach.
Who receives the fee?
The state. A supplier that has lost out is compensated separately through a compensation fee or a claim for damages.
How large can it be?
The Act sets a maximum tied to the value of the contract, and the court weighs the seriousness of the breach. Check the current cap, as the figure has been amended.
