Comparative Study of the Application of Public Contract Laws on Construction Projects

Abstract

Local governments and public authorities conclude contracts for the purpose of acquisition of goods, delivery of services, and construction of public facilities like bridges, infrastructure, and public buildings. A public contract is an agreement to perform particular tasks that are financed by government funds for the benefit of the whole community. Private entities and corporations are subject to stricter standards in their dealings with the government than in private transactions. Conversely, the government must deal fairly and equitably with those who contract with it to achieve successful implementation of the projects. On October 3, 2018, the new Public Contracts Law No. 182 of 2018 was published in Egypt to regulate in considerable detail several types of public construction administrative contracts and to provide a comprehensive legal regime of public procurement. The aim of this paper is to provide a comprehensive comparison between such public contracts law and the corresponding laws in Middle Eastern and European countries adopting a civil or common law system. The comparison is concerned with two subjects in construction administrative contracts, namely, arbitration and termination. The comparison identifies some limitations of the provisions of the new Egyptian public contracts law in that regard. Some amendments are suggested to make the administrative contract more equitable and attractive to private entities.