New Regulations on Direct Procurement of Services: Court of Appeal Approves Artistic Service Contract

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Court of Appeal Approves State Council of the Arts’ Agreement for Park Central Building Design

The Court of Appeal in Stockholm has approved the agreement between the State Council of the Arts and an artist for the design of the Park central building in Gothenburg. This decision comes after the administrative court in Stockholm invalidated the agreement in a previous case.

The ruling is significant because it clarifies the classification of such agreements under the LOU’s new regulations. Chapter 19a, introduced on 1 February last year, allows authorities to directly procure certain services of lesser value.

The Court of Appeal (case 2773-23) determined that the agreement should be considered a service contract since it involves the qualified creation of a site-specific building-related artistic creation. As the amount involved is below the threshold, the agreement falls within the provisions of the LOU.

Court of Appeal councilor Eva Gullfeldt highlighted the importance of determining whether a procurement should be regarded as a good or service in order to determine the appropriate procurement procedure. The new rules in the LOU provide increased opportunities for the direct procurement of certain services of lesser value.

The court acknowledged that there has been limited practice in determining whether artistic creation should be classified as the procurement of goods or services. However, in this case, the Court of Appeal agreed with the Staten Konstråd’s assessment that the assignment primarily relies on artistic freedom and a creative process.

The approval of this agreement by the Court of Appeal sets a precedent for future similar cases involving artistic creations. It provides clarity on the classification of such agreements under the LOU’s new regulations, giving authorities the opportunity to procure certain services directly.

The State Council of the Arts can proceed with the agreement for the design of the Park central building in Gothenburg, ensuring that the project can proceed smoothly. The decision also highlights the growing recognition of the importance of artistic freedom and creative processes in public procurement procedures.

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