In March 2005. the Head of Municipality Prnjavor signed Memorandum on Understanding with the Department for Democratization of OSCE mission in Bosnia and Herzegovina about implementing of the Project CONTRACT (UGOVOR). The goal of the project is promoting of the local democracy and strengthening of the connections between the citizens and municipality. The project CONTRACT is based on the principal that efficient and effective local administration requires devotion from the citizens as well as from the municipality in common work. Every standard of contract has to elements. The first one is regulating and means new procedures, administrative mechanisms and amendment of municipal documents and the other element of standard reflects obligation of the municipality to consult the citizens and ask for they contribution. In order to fulfill the requests from the project CONTRACT, the municipalities have to accomplish five separate modules:

- Law on freedom of approach to information

- Ethics codex

- Commission for planning for municipal development

- Legal frame

- Partnership.

After successful realization of all five modules of the project CONTRACT, the municipality gets certificate and official seal on which is name and logogram of CONTRACT for the purpose of correspondence. In realization of the Project CONTRACT participated 72 municipalities from Bosnia and Herzegovina and Municipality Prnjavor is the first one which completely implemented Project CONTRACT and which was officially given the certificate and the seal CONTRACT in March 2007. by the Ambassador of OSCE mission in Bosnia and Herzegovina.