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same as those for which the ministry or agency can choose to carry out an invitation toat least three persons.As can be observed, based on the foregoing, national or foreign private parties enjoybroad opportunities to interact with the government in Mexico for the purpose of carryingout projects that benefit the State as well as the private party.2.4. Government Contracts280C H A P T E R X V IOnce a contract has been awarded in accordance with any of the three previously mentionedprocedures, the private party is obligated to execute the contract under theterms and conditions provided by the public entity. In other words, there is absolutelyno possibility of negotiating the terms of the contract with the State. Only in the eventthat the contract in question is not consistent with the terms and conditions of the bidor its invitation can a private party refuse to sign a contract.In this context it is important to keep in mind that on many occasions public institutionsin practice modify certain contract terms by requiring changes in deliverydates or some good or service. In these cases it is recommended that the private partyalways document these changes because, if there is no corresponding written evidence,a dispute could subsequently arise in which the contractor may be accused ofbreach of contract. Also, it is important to document sufficiently the timely tenderingof goods or services, since in many cases the lack of such documentation allowsfor the imposition of heavy penalties for late delivery by the corresponding governmententity.On the other hand, it is worth noting that any contract compliance dispute is subjectto the provisions of the LAASSP or the LOP, as applicable, and secondarily to federalcivil legislation. Furthermore, disputes that arise between a government entity and aprivate party are in principle resolved by the federal courts, unless the parties haveagreed to submit to arbitration (which is permitted by the law as a valid dispute resolutionmethod).3. Acquisitions, Leases, Services, and Public Works in the Statesand Municipalities of the Mexican RepublicBecause Mexico is a federal republic, its component states have their own laws regardingacquisitions and public works for the acquisition of goods, lease, or service contractsand for the construction of local public works. In these laws, the same threeprocedures provided for by the federal legislation are generally repeated (public bid,limited invitation, and direct award) and a mechanism is established to defend againstany unfavorable ruling stemming from said proceedings when that is unlawful.

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