The public transport sector in Georgia, especially in major cities and municipalities, is undergoing active reform. For private operators, this presents both new business opportunities and the need to navigate a complex regulatory environment. Public Transit Contracts are intricate legal agreements between municipalities and private companies that regulate conditions of passenger transport, tariffs, subsidies, and service quality. For companies operating in this field, thorough knowledge of state procurement procedures and proper management of contractual obligations is critical to avoiding financial penalties or license revocation.
What does the Public Transit Contracts service cover?
Our service covers the resolution of all legal issues related to municipal transport:
- Tender Participation: Preparing tender proposals for municipal transport tenders, compiling a full package of technical and financial documentation.
- Contract Negotiation: Agreeing on contract terms with City Hall or transport companies (e.g., Tbilisi Transport Company).
- Permit Assurance: Obtaining permits for regular passenger transport with M2 and M3 category buses/minibuses.
- Service Level Standards (SLA): Legal analysis of obligations provided by the contract (schedule, cleanliness, safety) and risk management.
- Subsidy and Settlement Disputes: Monitoring financial obligations to be performed by the municipality (compensation for preferential travel) and handling disputes.
- Complaint Management: Appealing tender results or administrative acts to the Dispute Resolution Board of the Procurement Agency or in court.
Common scenarios when you need this service
Qualified lawyer involvement is necessary in the following cases:
- When a municipality announces a competition for new routes and the company wants to submit a competitive but legally sound application.
- If an existing operator faces contract termination due to alleged "non-performance of obligations" and needs defense.
- When tariff policies or the amount of compensation for discounted passenger travel become disputed.
- If a company plans to invest in a new fleet and needs long-term guarantees from the municipality regarding contract stability.
- When legal regulation of relationships with subcontractors (e.g., drivers, technical service centers) is needed in compliance with the main contract requirements.
Georgian Legal Framework
The sector is regulated by the "Law on Motor Transport," which defines general principles of passenger transport. The "Law on State Procurement" is crucial, as public transport operation is often a subject of state procurement. At the local level, resolutions of self-governing units (City Councils/Sakrebulo) regarding the rules and conditions for issuing regular passenger transport permits apply. The "Local Self-Government Code" defines the powers of the municipality in determining transport policy.
Process: How specialists work
Work begins with a detailed analysis of tender documentation or the existing contract. The lawyer checks the client's compliance with qualification requirements (fleet age, eco-standards, experience). During the tender stage, all necessary certificates and guarantees are prepared. In case of victory, the lawyer participates in the contract conclusion process to maximize the protection of the operator's commercial interests. For existing contracts, the lawyer carries out ongoing monitoring and represents the client in negotiations with municipal bodies.
Why choose a specialist on Legal.ge?
Public transit contracts require deep knowledge of administrative law and business law. Specialists presented on Legal.ge possess experience in both state procurement and transport regulations. They will help ensure your business is protected from unforeseen administrative risks and that you collaborate successfully with the public sector.
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