Decree 461 Adds Supplier Retention And RUP Registration Costs

Procurement cost mechanics

Executive Decree 461, issued on July 30, 2026, changes Ecuador’s public-procurement regulation. The decree creates a special contribution collected through supplier retention and establishes a paid registration framework for participants in the Registro Único de Proveedores (RUP).

For contracts and formalized purchase orders with state suppliers at or above USD 1 million, contracting entities will retain 0.4% of the net value of each invoice or payment statement submitted for payment, excluding taxes.

The decree allows the public-procurement system’s board to modify the contract threshold and retention percentage. Any modification cannot exceed 0.5% of the net value of each invoice or payment statement.

RUP access becomes a priced gate

Sercop will establish registration rights payable by natural or legal persons, national or foreign, as well as associations and consortia. The right is tied to registering and becoming eligible in the RUP for public-procurement procedures governed by the law.

The decree does not establish the eventual registration fee amount in the reporting reviewed here. That leaves the operating cost undefined for now, but the policy direction is clear: access to the procurement registry will have a formal payment component.

Business implications

The retention is a direct cash-flow variable for suppliers executing large public contracts. Its impact will depend on invoice timing, payment cycles, tax treatment, contract pricing, and whether the board later changes the threshold or percentage within the decree’s ceiling.

The registration right creates a separate entry cost for national and foreign participants. Procurement teams should distinguish the confirmed statutory framework from the still-pending Sercop fee schedule and implementation rules.

Watch: Sercop’s registration amount, payment process, effective date, and technical guidance for the retention.