Toward Better Applicability of Public Procurement Law: Delay Claims by the Contractor and Limit of Compensation under the Performance Guarantee

Abstract

Contracts between government and private entities are a daily occurrence. The administrative contracts are concluded by selecting the private partner by the public authority, through the means provided by the law such as tenders, auction, and direct negotiation. Such contracts are governed by the national public procurement law of the country. The term public procurement law relates to those legal provisions and legitimate arrangements that control the purchasing and procuring of works, services, and goods by the government, institutions, and public bodies. These include, among others, ministries, public enterprises, municipalities, and city councils. On October 3, 2018, a new Egyptian public procurement, namely, Law No. 182 of 2018, was issued to regulate contracts concluded by public authorities. The executive regulation of the law was issued on October 31, 2019. This paper presents a set of proposed amendments to the law, in line with relevant laws in many countries of the world, standard forms of contracts, and court rules to make it more equitable and to avoid unbalanced provisions that make international contractors and investors refrain from dealing with major projects in Egypt. The suggested amendments address two specific subjects, delay claims by the contractor and the limit of compensation under performance guarantee.