Economic equilibrium in state works, goods and services

By Carlos Romero Polanco | Published on August 16, 2026 | State and Public Procurement

Did your public contract become more expensive and you do not know who absorbs the difference? Not every cost increase is a legal claim. A breach of the economic-financial equilibrium exists only when the risk was not allocated to the contractor and the causal link between the extraordinary event and the economic impact is proven.

1 The cost went up. Who pays it?

A higher cost only becomes a legal claim if the risk was not allocated to the contractor and the causal link between the extraordinary event and the economic impact is proven. Four scenarios concentrate most cases:

Imports. Extraordinary increases in ocean freight and global port congestion. If the tender documents allocate to the State the risk of tariff changes or global force majeure, the difference paid for freight must be supported by BLs, invoices and receipts.

Infrastructure. Delays due to external approvals, third-party interference or late availability of work fronts. The evidence is the baseline schedule, the extensions granted, official communications and the site log; the quantum is the higher cost of keeping equipment, camps and indirect costs on site.

Services. Sustained increases in fuel and tolls that affected operations. It is proven with official publications from MICM, MOPC and DGII, and market reports; it is quantified by the difference between actual and expected cost, weighted by volumes.

Works and construction. Significant increases in steel, cement and aggregates due to global disruptions. It is evidenced with official indices (ONE, BCRD, ENAC), quotations and purchase orders, comparing the base index with execution.

It is not enough to prove that the market changed. You must prove why the Administration must absorb the impact.

Identify the extraordinary event.
Verify the risk allocation.
Prove causation with objective evidence.
Quantify with method and documentation.

2 Claim. Negotiate. Litigate.

The claim does not end when the letter is delivered. Law 47-25 establishes a clear, rational and verifiable procedure.

The deadlines that decide

15 business days — Reasoned request. Maximum period for the supplier to file a reasoned request with the terms it proposes as a solution, counted from knowledge of the alleged breach.

10 business days — Institutional decision. Maximum period for the institution to approve or reject the request, with reasoning and technical support, or to present a counterproposal.

Afterwards — Negotiation or litigation. If the decision is unfavorable or not issued on time, an action may be brought before the Superior Administrative Court within the following 30 days.

Anatomy of a serious claim

Original equation: the agreed conditions.
Breach event: the event that alters the equilibrium.
Date of knowledge: start of the period count.
Risk allocation: who bore it under the contract.
Causal link: how the event breaks the equilibrium.
Quantum: calculation of the economic impact.
Contractual basis: applicable clauses.
Legal basis: Law 47-25 and relevant rules.
Remedy requested: exactly what is being requested.
Evidence: documents and technical support.

Do not oversimplify the route: omitting steps, deadlines or content weakens your position and can turn a good case into a missed opportunity.

3 Restoring is not collecting

Restoring means rebuilding the equation going forward: how restoration is implemented, what measures you may propose and why the moment matters more than the amount.

The vehicle is the amendment

The supplier files a reasoned request and the agreement is formalized through a contract amendment. The basis for restoration is what still remains to be performed, not what has already been performed and received.

The measures you may propose

Updating the pending amount: economic adjustment of the remaining work.
Applying an adjustment formula: automatic review by agreed indices.
Reviewing unit prices: specific adjustment for affected items.
Extension of time: compensation for attributable lost time.
Rescheduling milestones: new schedule and payment flow.
Standby compensation: indirect costs due to delays.
Modification of scope: adjustment of deliverables by amendment.

What restoration does not cover

It does not cover expected profit. It compensates the imbalance; it does not guarantee margins or future profits.
It does not reach what was already received without reservation. Work performed and accepted without reservation will hardly be adjusted. Act early.
It works in both directions. The equation may favor the contracting authority or the supplier. The key is the evidence.

Every month you perform without claiming, the basis on which restoration could be made shrinks.

4 Quick reference

1. When was the procedure called?

Call before 01-29-2026. The regime of Law 340-06 and its Regulation applies. Routes: negotiation, the contractual mechanism and the administrative litigation jurisdiction.

Call from 01-29-2026. The regime of Law 47-25 and its Regulation applies. Routes: negotiation, conciliation/mediation and arbitration (if agreed).

2. When there is a breach and when there is not

There may be a breach Unforeseeable, extraordinary events outside the contractor's control; substantial alteration of the contractual equation; real, direct and quantifiable impact; risk not allocated to the contractor in the tender documents.

There is none Normal variations provided for in the contract; risks expressly allocated to the contractor; inefficiencies, errors, poor planning or lack of diligence; non-compensable public-interest changes (act of the prince).

3. The calendar that decides

Day 0: knowledge of the event.
15 business days: reasoned request.
10 business days: institutional decision.
Afterwards: negotiation or litigation.

4. Operational glossary

Contractual equation: economic relationship of equivalence between the obligations at the time of execution.
Modification of scope: change in works, services or deliverables that impacts costs or timelines.
Allocated risk: risk that the contract expressly assigns to the contractor or the State.
Attributable suspension: stoppage ordered by the Administration or due to a cause attributable to it.
Price adjustment: mechanism to update prices in the face of expected variations.
Act of the prince: lawful, unforeseeable act of authority that affects performance and may require compensation.

5 Legal note

This publication is based on Law 340-06, Law 47-25 and their regulations, as well as Dominican public procurement practice. The content is informative and does not constitute legal advice. The specific application to each contract must be analyzed case by case before filing a claim.