Responsible Use of Tax Funds
The public sector has a duty to use our collective funds wisely. Therefore, it is particularly important to collaborate only with serious and financially stable suppliers. This reduces the risk of various challenges and ensures responsible management of tax money.
Reviewing Suppliers
Procurement regulations define the types of requirements that may be imposed on a supplier:
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Authorization to Conduct Business
This may involve being listed in a professional register or operating a business. The contracting authority cannot require the supplier to have a specific legal form to submit a bid. However, after a contract has been awarded, the authority may require the supplier to formalize their business to, for example, issue invoices. -
Certain Economic and Financial Standing
The definition of a financially stable supplier must be adapted to the industry. Artists generally have significantly lower incomes than other professions. Margins are often small, and at times, their businesses may not be profitable. This does not mean they are unprofessional or unqualified. If the requirements are too strict, talented artists may be excluded due to temporary circumstances such as fewer commissions, parental leave, illness, or studies. Keep in mind that these are almost always sole proprietorships operating in an economically challenging sector. -
Certain Technical and Professional Capacity
Suppliers contracting with the public sector must demonstrate the necessary competence and ability to carry out the agreed-upon assignment. This may involve education, experience, or equipment.
Recommendation
Ensure that the working group has knowledge of the supplier group. If no one involved understands the conditions artists work under, there will likely be gaps in the procurement process. It is essential to consider the reality suppliers operate in to use tax funds wisely.
