Italy revises public procurement rules on equitable compensation and subcontracting

A corrective decree (D. Lgs 209/2024) to Italy’s Public Contracts Code will take effect in 2025, altering the application of the “equitable compensation” principle (Law 49/2023) for engineering, architecture and other high‑value technical services that exceed EU thresholds. The decree seeks to clarify how remuneration for professional services to public administrations must be proportionate to the quantity and quality of work, aligning with ministerial and constitutional standards.

The same legislative package also reforms subcontracting rules under article 119. It removes previous quantitative caps on subcontracted work, requires main contractors to disclose subcontracting plans during tendering, and introduces mandatory direct payments to subcontractors, solidary liability for labour and tax obligations, and price‑review clauses to protect small and medium‑size enterprises. These measures aim to improve cash‑flow security and prevent abusive contract terms.

Both changes are intended to provide greater legal certainty for professionals and subcontractors operating in the Italian public procurement market.