In force since Apr 26, 2024
Neuquén reactivates public works: it renegotiates stalled contracts and excludes lost profit
Ley 3432 (2024) + Decretos 23/2024 and 500/2024
in forcePROVINCIAL
State, institutions and security
Ley 3432 declares the emergency of public works in Neuquén and opens two years of contract renegotiation.
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What changed and who it applies to
What changed
Neuquén declared a state of emergency in provincial public works and created the Reactivation Plan for 2 years from the law's publication, extendable for the same term by the Executive. The core is contractual: (1) the law deems given, for all contracts under execution at the time of its enactment, the ground of art. 74 of the Public Works Law (force majeure or act of God), and enables renegotiating them, increasing or reducing the work, adjusting the work plan and the project, or terminating them; the contractor that renegotiates waives claims for unproductive expenses and other compensation accrued until 12/31/2023; (2) if no agreement is reached and the contract is terminated, the indemnity to the contractor is limited exclusively to consequential damage, excluding lost profit (art. 78 subs. h, Ley 687), on any ground of termination. The plan covers education, health, prison and security buildings, road works, electricity, gas, water and sanitation networks, housing and water resources, and invites the municipalities to adhere verif. verif Apr 26, 2024 ↗
In force
Law passed on 04/11/2024, promulgated on 04/25/2024 by Decreto 371/2024 and published in Official Gazette No. 4287 of 04/26/2024. The Reactivation Plan ran for 2 years from publication, that is until 04/26/2026, extendable by another 2 by the provincial Executive. No extension decree was found, so, unless one exists, the plan's term expired on 04/26/2026 unconf. Regulated by Decreto 500/2024, of 05/17/2024; Decreto 23/2024 had earlier set the framework for renegotiating each contract. verif Apr 26, 2024 ↗
Who it applies to
Construction companies and public-works suppliers with ongoing contracts in Neuquén: they can renegotiate the work, the work plan and the project, but if the contract is terminated the indemnity is limited to consequential damage, without lost profit verif. Downstream, the reactivation benefits road, water-, gas- and electricity-network, aggregates, freight-transport and engineering-service SMEs; for the Vaca Muerta ecosystem, the reactivation of routes relieves the logistics of heavy transport thesis. verif Apr 26, 2024 ↗
The norm
Ley provincial 3432, 'De Reactivación de la Obra Pública Provincial' (reactivation of provincial public works), passed by the Legislature of Neuquén on 04/11/2024 and promulgated by Decreto 371/2024 on 04/25/2024. It runs to 9 articles. It was published in Official Gazette of Neuquén No. 4287 of 04/26/2024. It rests on Neuquén's Ley 687 on public works, which Art. 5 subs. d) cites by its number when excluding lost profit (art. 78, subs. h); Art. 4 invokes the force majeure ground of art. 74, naming the 'Ley de Obras Públicas' without its number. It is regulated by Decreto 500/2024, of 05/17/2024, which cites Decreto 23/2024 as the prior framework for renegotiating each contract. verif Apr 26, 2024 ↗
Our reading
When the national government cut financing, Neuquén did not leave the works abandoned: it declared the emergency, sat down to renegotiate each stalled contract and set a clear limit on what it pays if it breaks — consequential damage yes, lost profit no. It is direct demand for contractors and suppliers, and fiscal discipline in line with the national program. thesis
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