Framework for Enhanced Applicability of the Public Procurement Law to International Administrative Construction Contracts

Abstract

Contracts between the government and private entities happen on a daily basis. Administrative contracts are entered into by the selection of the private partner by the public body by means mentioned in law such as tenders and direct negotiation. These contracts are subject to the country’s national public procurement law. The term public procurement law relates to the legal provisions and arrangements that control the government’s public institutions and agencies’ procurement of works, services, and goods. These include, among others, ministries, public institutions, municipalities, and city councils. On October 3, 2018, a new Egyptian public procurement law, Law No. 182 of 2018, was issued to regulate contracts concluded by public bodies. The executive regulations of the law were issued on October 31, 2019. This paper presents the proposed amendments to the law in line with the relevant laws in many countries of the world 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 contract termination, price adjustment, delay claims by the contractor, limit of compensation under performance guarantee, and arbitration.