Government Tenders and Procurement Law

1. A government agency must terminate a contract in the following cases: a) If it is established that the contractor has, personally or through others, directly or indirectly, bribed an employee of the agencies subject to the Law; obtained the contract through bribery, fraud, deceit, forgery, or manipulation; or engaged in any such acts in the course of executing the contract. b) If the contractor becomes bankrupt, files for bankruptcy, is proven insolvent, or is placed under receivership, or if the contractor is a company which has been dissolved or liquidated. c) If the contractor assigns the contract without the written approval of the government agency and the Ministry. 2. A government agency may terminate the contract in the following cases: a) If the contractor delays commencement of work, procrastinates in executing the contract, or violates any of the contract’s terms and conditions, and the contractor fails to rectify the situation within 15 days from the date of receiving a written notification. b) If the contractor dies, the contract shall be terminated, entitlements settled, and guarantees returned. The government agency may continue contracting with the heirs of the deceased upon their approval, provided they have the technical qualifications and the guarantees necessary to execute the contract. c) If the contractor subcontracts another contractor without the written approval of the government agency. 3. Upon terminating a contract, a tender may be held for the remaining part through the same tendering process. The government agency may hold a limited tender and invite bidders with the next best bids to submit new proposals which shall be assessed in accordance with the provisions of the Law. 4. The Regulations shall set the conditions and procedures for the implementation of the provisions of this Article. Government Tenders and Procurement Law