The implementation period of the National Recovery and Resilience Plan (NRRP; in Romanian, PNRR) ended on 31 August 2026. The final payment requests could be submitted to the European Commission until 30 September 2026, and payments under the Recovery and Resilience Facility must be completed by 31 December 2026. At the same time, numerous investments financed through the NRRP are still being executed, which raises issues as to the continuation of the works and the source from which the remaining costs will be covered. According to the Government’s review, reported in the press in early September 2026, more than 2,000 works are still unfinished.
For contractors, subcontractors and suppliers, including companies from Türkiye, Italy, Spain or China carrying out public works in Romania, the practical question is who pays for works executed after that date and what happens to the public procurement contracts concerned that are still being performed. Law no. 183/2026 on the operational and financial closure of the National Recovery and Resilience Plan (‘Law no. 183/2026’) mainly governs the relationship between the State and the beneficiaries of the funding and lays down rules for closing the programme, classifying investments and continuing certain legal commitments. In parallel, Law no. 141/2026 on the application of certain measures to accelerate the implementation of public investments in the construction sector (‘Law no. 141/2026’) introduces special mechanisms for the acceptance of certain construction works. By contrast, the relationship between the contracting authority and the contractor remains governed by the public procurement contract, by the provisions of Law no. 98/2016 on public procurement (‘Law no. 98/2016’) and, on a supplementary basis, by the applicable rules of general law. The termination or amendment of the European funding does not, in itself, amount to the termination of the works contract, nor to the extinguishment of the contracting authority’s payment obligations.
1. The NRRP closure timetable and what changes for ongoing projects
Law no. 183/2026 on the closure of the NRRP was promulgated on 28 August 2026. It provides that beneficiaries are required to complete project activities within the implementation period and no later than 31 August 2026, and that expenditure relating to activities carried out after that deadline can no longer be authorised for payment from NRRP funds.
This limitation, however, concerns the eligibility of expenditure within the funding mechanism, not the existence of the obligations assumed by beneficiaries towards those executing the works.
The distinction is essential. Works may cease to be eligible for reimbursement from the NRRP without this automatically removing the contracting authority’s obligation to pay for the performance due under the public procurement contract.
2. What Law no. 183/2026 provides for unfinished investments
Law no. 183/2026 classifies investments according to their stage of completion on 31 August 2026. For those still being implemented, the main rules are as follows:
- beneficiaries are required to complete the investments by 31 December 2026, from their own funds and/or from other lawfully established sources;
- beneficiaries report the physical and financial progress monthly to the reform and/or investment coordinators, and the final report is to be submitted by 15 January 2027;
- failure to complete by 31 December 2026 entails the recovery of amounts from the beneficiaries, in proportion to the degree to which the indicators undertaken have not been met;
- for reforms and/or investments removed from the NRRP, the law regulates the continuation of certain existing legal commitments and their payment from the beneficiaries’ budgets or from other lawfully established sources, under the conditions provided by law.
Separately, Law no. 141/2026 introduces an optional mechanism which, under the conditions expressly provided by law, allows acceptance upon completion of works to be granted even where certain ancillary works have not been completed (with acceptance suspended in respect of those works). The application of the mechanism is conditional on compliance with the statutory requirements concerning the nature of the unfinished works, the functionality and safety of the construction, as well as value thresholds for the ancillary works. These works must be completed within the time limit set by law, which may not exceed 120 days from the signing of the acceptance report, save for the exceptions expressly provided.
3. GEO no. 41/2025: suspension and termination of financing agreements
Government Emergency Ordinance no. 41/2025 establishing certain measures for the management of investments financed from the NRRP and from national public funds (‘GEO no. 41/2025’) entered into force on 19 August 2025. Among other things, it allowed the unilateral termination of financing agreements for which no procurement procedures had been initiated and, respectively, the suspension of those without an order to commence works. The continued financing of investments with physical progress below 30% was made conditional on Government approval by memorandum.
For contractors, the key point is that the measures concerning financing agreements do not automatically entail the suspension or termination of public procurement contracts. A works contract may continue to produce legal effects even if the initial funding is suspended, reduced or withdrawn.
4. The change in the source of funding and the public procurement contract
The removal of the investment from the NRRP does not, in itself, alter the price, the time limits or the payment obligations under the public procurement contract. The contracting authority remains the debtor of the payment for works executed and accepted in accordance with the contract, and Law no. 183/2026 expressly provides that existing legal commitments are performed in accordance with the contractual clauses, with payment from other lawfully established sources.
Modification of the contract (Article 221 of Law no. 98/2016)
Extending time limits, reducing the scope or rescheduling payments must fall within one of the cases permitted by Article 221(1) of Law no. 98/2016: clear, precise and unequivocal review clauses [point (a)], additional works of no more than 50% of the initial value [point (b)], circumstances which a diligent authority could not have foreseen [point (c)], non-substantial modifications [point (e)] or modifications of low value, below 15% of the initial price for works [point (f)]. Under Article 222(1), any other substantial modification requires a new award procedure.
Termination of the contract by the authority
Law no. 98/2016 allows unilateral termination by the contracting authority in limited cases. Article 222(2) allows it where the contract has been modified in breach of the rules on modification. Article 223(1) allows it if, at the time of the award, the contractor was in one of the exclusion situations under Articles 164–167, or if the Court of Justice of the European Union has found a serious infringement of Union law. In both cases, the right of termination must be provided for in the tender documentation.
Loss of NRRP funding is not among these cases. Consequently, merely invoking a lack of funds is not sufficient, in itself, to justify terminating the contract on the basis of these provisions. The lawfulness of such a measure must be assessed against the contractual clauses, any other applicable legal grounds and general law. The consequences of termination for works already executed, for amounts due and for any compensation owed to the contractor must also be taken into account.
Have you received a notice of suspension or termination, or do you have unpaid invoices under a contract originally financed from the NRRP? We will review the contract and the execution documents and tell you what steps can be taken.
5. Payment for works executed and late-payment interest
For public procurement contracts, payment terms are governed by Law no. 72/2013 on measures to combat late payment of payment obligations arising from contracts concluded between professionals and between professionals and contracting authorities (‘Law no. 72/2013’).
Law no. 72/2013 lays down the rules applicable to public procurement contracts:
- the contracting authority pays within no more than 30 calendar days of receipt of the invoice or of an equivalent request for payment;
- a period of up to 60 days may be agreed only if it is expressly provided for in the contract and in the procurement documentation and is objectively justified;
- the acceptance or verification procedure may not, in principle, exceed 30 days from receipt of the goods or performance of the services;
- in the event of late payment, statutory late-payment interest is due, equal to the reference interest rate plus 8 percentage points, together with minimum damages of EUR 40;
- clauses excluding late-payment interest are deemed unfair.
The closure of the NRRP eligibility period does not, in itself, constitute grounds for refusing payment for performance due under a public procurement contract. The contractor’s right to payment depends on the fulfilment of the contractual obligations and on the conditions laid down for the certification, acceptance and settlement of the works. In particular, the interim statements of works executed, payment certificates, acceptance reports, supporting documents and contractual invoicing procedures should be checked.
6. Price adjustment
Article 222² of Law no. 98/2016 governs the possibility of adjusting the contract price where, during performance, the price indices of the elements on which the tender was based change and this development is reflected in the contract costs. The adjustment mechanism, the indices used and the source of the data must be provided for in the tender documentation and in the contract.
For works contracts with a duration of more than 6 months, the contracting authority is required to include price adjustment or review clauses. An extension of the execution period does not, in itself, give rise to an automatic right to price adjustment; the contractual clauses and the applicable legal conditions must be checked.
In contracts using FIDIC conditions or other complex contract models, timely notification of events giving rise to additional costs may be decisive for preserving the contractor’s rights.
7. Performance guarantee (performance bond)
Delays in executing the works may lead the contracting authority to make claims against the performance guarantee. Such a measure must, however, be assessed in the light of the obligations actually not performed, the contractual conditions, the applicable rules and the nature of the guarantee instrument.
In particular, it should be checked whether the delay is attributable to the contractor or whether it was caused, wholly or partly, by the suspension of the works, non-payment of amounts due, lack of access to the site or other circumstances within the contracting authority’s sphere of responsibility. The conditions for prior notice of the claim and the documents required to call the guarantee should also be examined.
Law no. 141/2026 also contains special provisions on the progressive release of the performance guarantee, relevant to investments falling within its scope.
For contractors, it is important to monitor the validity periods of the guarantees and to raise objections in writing, in good time, to any unjustified claims.
8. Subcontractors and suppliers
Article 218 of Law no. 98/2016 allows the contracting authority to pay subcontractors directly for the part of the contract they have performed, at the subcontractor’s request and in accordance with the agreed contractual schedule, if the nature of the contract permits this arrangement and the subcontractor has opted for it.
The option must be exercised when the public procurement contract is concluded or, where applicable, when the subcontractor is introduced into the contract. Payment is made after the performance has been confirmed by the documents agreed by the parties. If the contractor unjustifiably blocks the confirmation, the law allows the performance to be confirmed by the contracting authority and the subcontractor.
9. Suspension of works for non-payment and disputes
Law no. 98/2016 does not regulate the suspension of the execution of works by the contractor, and a unilateral suspension of the works should not be decided solely on the basis of outstanding invoices. The contract may contain special procedures concerning notice of non-payment, remedy periods, suspension of execution and the possible consequences of an unjustified suspension.
In addition, the Civil Code regulates the exception of non-performance (exceptio non adimpleti contractus) (Article 1556 of the Civil Code), but invoking it in a public procurement contract must be assessed with caution, on the basis of the contractual clauses.
Under Article 53(1) of Law no. 101/2016 on remedies and appeals in the award of public procurement contracts, sectoral contracts and works and services concession contracts, and on the organisation and functioning of the National Council for Solving Complaints, disputes concerning the performance, annulment, nullity, rescission, termination for breach or unilateral termination of public procurement contracts are heard at first instance, urgently and as a matter of priority, by the administrative and tax litigation section of the tribunal (county court) within whose jurisdiction the contracting authority’s seat or the claimant’s registered office or domicile is located. Cases are heard by specialised public procurement panels, under the conditions and within the time limits provided by law.
Where contracts contain arbitration clauses, the validity and applicability of the arbitration agreement must be checked separately.
The choice of legal remedy must take into account both the immediate objective (recovering outstanding amounts, challenging the suspension or preventing an unjustified termination) and the possibility of continuing the project.
10. What contractors involved in NRRP projects should do now
- Document the works executed up to 31 August 2026 and after that date: interim statements of works executed, acceptance reports, site log, correspondence with the owner’s site inspector (diriginte de șantier).
- Issue invoices on time and keep track of the date of their receipt by the authority, from which the payment term runs.
- Notify the authority in writing of outstanding invoices and, where applicable, calculate the late-payment interest due.
- Also send the necessary notices regarding delays, additional costs, extensions of time and any breaches of the contracting authority’s obligations.
- Check any notice of suspension or termination: the legal basis, the contractual clause invoked and the time limits for response.
- Check the validity periods of letters of guarantee and respond in writing to any claim against the performance guarantee.
- In the event of non-payment, suspension or termination of the contract, assess the options for negotiation, contractual claims and litigation early on.
Frequently asked questions
Can the authority refuse payment because the investment is no longer financed from the NRRP?
No. Law no. 183/2026 provides that existing legal commitments are performed in accordance with the contractual clauses, and payments are made from the beneficiary’s own budget or from other sources. The loss of European funding is not, in itself, a lawful ground for refusing payment for works executed.
What happens if the works are not completed by 31 December 2026?
The beneficiary risks recovery of the amounts received from the NRRP, in proportion to the indicators not met. The sanction concerns the relationship with the funding provider; the obligations between the authority and the contractor remain those set out in the contract.
Can the authority unilaterally terminate the works contract for lack of funds?
No. The cases of unilateral termination in Article 222(2) and Article 223 of Law no. 98/2016 do not include lack of funding. Likewise, any ground for termination is assessed on the basis of the contract and general law.
What interest can I claim on unpaid invoices?
If the statutory conditions are met, you may claim the statutory late-payment interest provided for by Law no. 72/2013, namely the reference rate plus 8 percentage points, together with minimum damages of EUR 40.
Can I suspend the works if the authority does not pay?
Whether suspension is possible depends on the contractual clauses and the applicable legal conditions. An unjustified suspension may have consequences for the contractor, which is why the contractual procedures and notices must be checked beforehand.
Can acceptance take place if ancillary works remain unfinished?
Law no. 141/2026 allows, under certain conditions, the use of a special acceptance mechanism, with acceptance suspended for the unfinished ancillary works. Its application depends on meeting the statutory requirements, including the value thresholds and completion deadlines.
Where are disputes concerning the performance of the contract heard?
At first instance, jurisdiction lies with the administrative and tax litigation section of the tribunal (county court) within whose jurisdiction the contracting authority’s seat or the claimant’s registered office or domicile is located, under the conditions provided by law.
Adesman & Asociații assists contractors, subcontractors, suppliers and contracting authorities in the performance of public procurement contracts, in negotiating addenda and in disputes concerning payment for works, guarantees and contract termination. Find out more about our public procurement and public-private partnerships practice.
Would you like to know how the closure of the NRRP affects your ongoing contracts? Speak to our public procurement team.
This material is provided for general information purposes only and does not constitute legal advice. The applicable regime must be assessed in the light of the specific contract and the legislation in force at the date of the analysis.
