Equilíbrio financeiro em contratos públicos, or financial equilibrium in public contracts, is a fundamental principle ensuring that the initially agreed-upon economic equation between the contractor and the government remains balanced throughout the contract’s lifespan. This balance considers the contractor’s expenses and the corresponding revenue they are entitled to receive under the contract terms. Maintaining this equilibrium is crucial for the successful execution of public projects and services. Several factors can disrupt this financial equilibrium. These include unforeseen circumstances (force majeure), acts of God, governmental actions (factum principis), or material changes in the underlying economic conditions. These events can either increase the contractor’s costs or decrease their revenue, thereby jeopardizing the viability of the project. Brazilian law, particularly Law No. 8.666/93 (still relevant despite the new Law No. 14.133/21 gradually replacing it) and Law No. 14.133/21 (the new Public Procurement Law), explicitly acknowledges and protects the principle of financial equilibrium. These laws provide mechanisms for re-establishing the balance when disruptions occur. The most common methods to restore financial equilibrium include: * **Readjustment (Reajuste):** This involves periodically adjusting the contract price based on pre-determined indices that reflect inflation and cost variations in specific sectors. It’s typically used for contracts with a longer duration. * **Price Revision (Revisão de Preços):** This mechanism allows for a more specific recalculation of the contract price when there are demonstrable and significant variations in the costs directly impacting the contract execution. It’s a more targeted approach than readjustment. * **Indemnification (Indenização):** This refers to compensating the contractor for damages incurred due to actions or omissions by the government that directly and negatively affect the contract’s financial equilibrium. This is often applied when the disruption is due to the factum principis (government action). The legal framework emphasizes the importance of objective evidence and detailed documentation to support claims for financial re-equilibration. The contractor must demonstrate the actual impact of the disruptive event on their costs or revenue. The process for seeking re-equilibration typically involves the contractor submitting a formal request to the contracting entity, providing detailed justification and supporting documentation. The government then analyzes the request, potentially involving technical and legal experts to assess the validity of the claim and the appropriate compensation. It’s important to note that the right to financial re-equilibration is not absolute. It is subject to certain limitations. For instance, the contractor is not entitled to compensation for risks that were reasonably foreseeable at the time of contract signing or for costs resulting from their own negligence or mismanagement. Maintaining financial equilibrium is not only a legal requirement but also a crucial element of good governance and responsible public procurement. It ensures that contractors are fairly compensated for their work, encouraging them to deliver high-quality services and complete projects successfully. Failure to uphold this principle can lead to disputes, project delays, cost overruns, and ultimately, damage to the public interest. The new Procurement Law, No. 14.133/21, reinforces this principle, offering more transparent and structured mechanisms for managing financial equilibrium claims in public contracts.