PORTUGAL Law and Practice Contributed by: Luís Portela de Carvalho, Pedro Cortés and Cláudia de Azevedo Neves, Lektou
courts may also scrutinise clauses that are excessive or inconsistent with mandatory legal protections. Negotiation Practice More sophisticated contracts increasingly use tiered caps. A lower cap may apply to ordinary contractual breaches, while a higher cap applies to higher-risk areas such as data protection, cybersecurity or intel - lectual property indemnities. 4.3 Warranties Warranties in IT services contracts are usually tailored to the nature of the project, but several provisions are common. Suppliers are typically asked to warrant that: • the services will be performed with reasonable skill and care; • deliverables will materially conform to the agreed specifications and service levels; • the services and deliverables will not infringe third- party intellectual property rights; • the supplier will comply with applicable laws, including data protection and cybersecurity requirements; and • the supplier has the rights, resources and authori - sations needed to provide the services. In consumer-facing arrangements, mandatory con - formity rules under Decree-Law No 84/2021 limit the extent to which a supplier can disclaim or nar - row statutory rights. Business-to-business contracts allow more flexibility, but customers will still often resist broad “as is” disclaimers for bespoke or critical services. 4.4 Agile Methodology Agile contracting is increasingly used in Portugal for software development, digital transformation and sys - tems integration projects, particularly where require - ments are expected to evolve. The usual structure is a framework agreement cov - ering governance, pricing, intellectual property, confidentiality and liability, with statements of work, backlogs or sprint plans defining the work in more detail. These contracts require a different approach from traditional fixed-scope projects. They normally place greater emphasis on collaboration, prioritisa -
tion, change management and acceptance criteria, rather than on a complete specification agreed at the outset. Pricing is often based on time and materials, capacity or sprint-based fees, sometimes combined with milestone or quality controls. 4.5 Payment Models Payment models vary according to the predictability of scope and the allocation of project risk. The most common models are: • time and materials, used where the work is explor - atory, advisory or agile and the scope may change; • fixed price, used where deliverables are well defined and acceptance criteria can be agreed in advance; • milestone-based payments, often linked to deliv - ery, testing or acceptance stages; • subscription fees, typical for SaaS and managed services; and • hybrid or outcome-based models, combining fixed, variable and performance-related elements. Public sector customers tend to prefer more predict - able pricing structures, while private sector customers are generally more open to hybrid models where the commercial incentives are clear. 5. Telecommunications and Networks 5.1 Telecoms Laws and Regulations Portugal’s telecommunications framework is mainly based on two statutes. • Law No 16/2022 is the Electronic Communica - tions Law. It implements the European Electronic Communications Code and regulates electronic communications networks and services, includ - ing market entry, spectrum, numbering, end-user rights and universal service. Note that Decree-Law No 125/2025 has revoked certain provisions of Law No 16/2022 relating to security of networks and services, security incidents and related measures, with effect from 3 April 2026, although transitional provisions apply in relation to certain ANACOM acts;
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