Atlas · Energy contracts

The limit for increases or reductions in contracts without new bidding is 50% of the updated initial value

AnswerThe maximum limit for increases or reductions to the contracted object without new bidding is 50% of the updated initial contract value, provided there is a contractual clause.

Reviewed on 2026-10-04 · next review 2027-04-04

Data

Who	Criterion	Consequence	Source	Data of the data
Federal public bodies	Contracts resulting from exemption from bidding due to health emergency (Law 13.979/2020)	Mandatory acceptance of increases or reductions to the contracted object, up to 50% of the updated initial contract value, provided there is a contractual clause	Law 13.979/2020, art. 4º-I	06/02/2020 (redaction of Law 14.035/2020)

Data consulted on 04/10/2026.

Basis

Law n.º 13.979/2020 (Planalto, in Portuguese): art. 4º-I allows contracts resulting from exemption from bidding due to health emergency to include a clause obliging the contractor to accept increases or reductions of up to 50% of the updated initial contract value.
Law n.º 14.300/2022 (Planalto, in Portuguese): does not address percentage limits for increases/reductions in contracts.

How it applies

The rule applies exclusively to contracts signed during the health emergency due to coronavirus (Law 13.979/2020), provided that:

1. The exemption from bidding occurred under this law;

2. The clause accepting increases/reductions is expressly stated in the contract;

3. The limit is calculated based on the updated initial contract value.

Limits

Restricted applicability: The rule only applies to contracts resulting from Law 13.979/2020 (health emergency). Other public contracts follow the limits of Law 8.666/1993 (25% for works and services, 50% for purchases, with exceptions).
Mandatory contractual provision: The clause accepting increases/reductions must be in the original contract and cannot be added later.
Updated initial value: The 50% calculation must consider the contract value adjusted for inflation up to the date of the change.
End of emergency: The rule ceases to be valid after the declared emergency situation ends (Legislative Decree n.º 6/2020).
Subsequent changes: Verify if Law 13.979/2020 or related regulations have been modified after 2020, especially regarding art. 4º-I.

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*Data consulted on 04/10/2026.*

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