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Decree No. 195 T |
Embodying the Contract Regulations of Public establishments and corporations as defined in article 1 of legislative Decree No. 18 of 15.2.1974 |
The president of the republic,
Acting
upon the provisions of legislative decree No.18 of 15.2.1974 hereby
decrees as follows:
Article1.
The contract regulations appended hereto shall apply to this public establishments, corporations and bodies defined in article 1 of legislative decree no. 18 of 15.2.1974.
Article2.
With effect from the date of implementation of these regulation, all contract regulation applicable by the bodies governed by the provisions hereof as well as all other provisions contrary hereto, wherever these are contained in the regulations of such bodies shall be abolished.
Article
3.
This contract regulations shall not apply to those undertakings which the date of presenting their offers has expired or whose contracts have been concluded before coming into force of these regulations.
Article
4.
Minister
of finance shall issue the instructions executing these contract
regulations.
Article
5.
The
Minister concerned may be an order issued by him lay down detailed
revisions as do not run counter to the provisions of these regulations.
Article
6.
This
Decree shall be published in the official Gazette.
Damascus,25.7.1974
President of the Republic
Hafez Assad
Part 1 Definitions
Chapter
I - Procedure of Securing the Contracting Party’s Requirements
In
the context of implementation of these Regulations, the following
expressions shall be constructed to
mean as follows:
1.
Minister: The concerned minister to whom are attached the public
establishments, corporations or firms as may be the case.
2.Contracting
Party: The public organization, corporation or establishment that
concludes the contract.
3.Expense
authority: The person specified in Article 32 of legislative decree 18
of 15.2.1974.
4.Public
Bodies: The ministries, administrations, public establishments and
firms, local administrative units, municipalities, municipal concern's
public corporation and organization mortmmain departments and all other
public bodies.
5.Undertaking:
The obligation biding the contractor towards the contracting party.
6.Successful
Tenderer: The party awarded the tender, or whose offer is approved in
consequence of invitation to tenders, or who is under a contract the
ratification of which has not been finalized.
7.Cotractor:
The natural or juristic person who is under contract with the
Contracting Party for supply of materials, performance of services or
execution of works.
8.Contract:
The set of terms binding both the contractor and the Contracting Party,
including the books of general and special conditions, specifications
and all other schedules, drawings and documents connected with the
Undertaking.
A. The expenditure arising from the execution of
works, provision of services , purchase of materials
and all other requirements of the contracting party shall be effected by
one of the methods .
· Direct purchase .
· Purchase under direct
contract
· Tender
· Call for quotations
· Consensual contract
· Contents
· Execution by trust
B. without prejudice to the provisions contained in this part , the
expenditure Authority may specify the method of meeting the required
needs .
Chapter 2 - Direct purchase
The supply of materials
. provision of services or execution of works by direct purchase shall
be effected in the following cases :
a. if the required needs to be met are based on an official tariff .
b. if purchase is to be made from a public body .
c. if the expenditure involved dose not exceed ten thousand Syrian Pounds ,
this calling may be raised to fifteen thousand Syrian Pounds with the Minister's Approval .
a. the direct purchase referred to in c above shall be effected through
direct purchase committees .
b. the expenditure arising from direct purchase shall be paid out with
reference to the invoice issued by the selling party , provided it shall
be certified by the direct purchase committee in respect of the
expenditure covered by case ( c ) above to signify that the purchases
conform to required specifications and that the prices quoted in invoice
are moderate and conform to the prevailing prices and conform to the
prevailing prices .
c. the direct purchase committees shall be set up through an
order by the expenditure authority who shall specify the number
(not less than three ) if
the members of leach committee and its functions .
A. In emergency cases left to his description, the expenditure Authority may
approve that certain requirements whose value dose not exceed Syr 300
may be met through other than direct purchase committees .
B. The invoices of incurred expenditure shall be able certified by the
expenditure Authority in accordance in accordance with the provisions of
A above .
Chapter 3 – purchase under
direct contract .
A. The direct contract shall be the agreement to supply materials or provide
service from an external source through direct contract between the
parties authorized to enter into contract with the contractor by any
means of communication provided that this contracts are subsequently confirmed by written documents specifying the
nature, prices and quantities of such materials and services , the
method place and conditions of delivery the mode of payment for the
obligation resulting therefore, the execution warranties and in
general anything relating to the subject matter of the contract and its
execution procedure and obligations of both parties.
B. The provisions of this Article shall be solely applied to those emergency
cases left to the expenditure Authority's description.
Chapter 4 - Tender
A. tender shall be placed for
supply of materials provisions of services and execution of works as and
when estimate exceeds the limits specified for direct purchase . this
procedure shall be followed in all cases not specifically excluded in
these regulations .
B. the tender shall be rely on the following :
·
book of general conditions issued by an order by the minister in
conjunction with the minister on finance , consistently with the
provisions of these regulations
·
book of special conditions (financial, legal and technical embodying the
drawings, specifications and studies of the materials to be supplied,
the services to be rendered or the works to be performed . this book
shall be certified by the expenditure Authority .
·
itemized lists of required supplies or works with their quantities on the
bases of the adopted unites unless the expenditure Authorities
establishes otherwise .
A. the
tender shall be announced at least 15 days before its date in the case
of internal tender and 50 days at least in the case of external tenders
.
B. this
period may be reduced in cases calling for speed which shall be left to the expenditure authority's discretion but may under
no circumstances be less than 3 days in the case of local tenders and 15
in the case of foreign tenders .
C. The
day of the tender announcement and the date of the tender meeting shall
not be included in the said period.
D. The
book of conditions.
Drawings and other documents on which the tender is based may not be
modified after announcement is made therefore.
A. The tender announcement shall be published at least in one daily
newspaper once at least and in the government tender bulletin, if any
copies of these announcement shall also be posted in the contracting
party's notice bulletin, moreover and where necessary the tender may be
announced on radio and television or other mass media, notification may
also be sent to perspective tenders . Arab commercial missions and
representation xxxxxxxx and the foreign missions in Syria may be send
copies of the announcement of foreign tenders and some of their
documents.
B. The tender announcement xxxxxxxx the following information at least :
·
Subject of tender.
·
Place and date of offer submission and tender meeting .
·
Bid and performance bonds.
·
Where the tender file can be bought and all tender information and
conditions can be obtained.
·
Period for execution of the undertaking.
·
How long the tendered shall remain bound by his offer.
A. The following condition
shall be satisfied by prospective tenders:
· Shall be deprived of participating
in
tenders or entering into contract with contracting party or with public
bodies .
· Shall be recorded in the trade registry or in chamber of commerce,
agriculture or industry , as may be the xxxxx in case of these
participants who are not Syrian Arabs or Palestinians residing in Syria,
to the exclusion of foreign public establishments of governmental
character .
· Should not be in employ of public body .
· Shouldn’t be blacklisted under the Israel boycott regulations.
B. The book of special conditions may require the participating tenderers to
meet specific financial technical and professional qualifications .
The prospective tendere
shall submit along with his offer , the required bid bond as specified
in the book of special conditions , public bodies ,these exempted under special legislative texts shale not be required to furnish
this bond provided this is xxxxx in the book of conditions or in the
invitation to tenders
The offer shall be
placed in three sealed envelope which shall then be placed in a large
envelope addressed to the party specified in the tender announcement and
featuring the subject of tender and the tender meeting .
a. The first envelope shall contain the required bid bond as well as the
documents attesting that the conditions specified in Article 10 hereof
are satisfied. The second envelope shall contain the specifications and the technical offer. The third
envelope shall contain the technical and commercial offer with the list
of unit or total prices , as may be the case .
b. The offer submitted and sign by
several
natural or juristic .
c. Persons shall be binding upon the signatory tenderers , jointly and
severally , towards the contracting party .
The tenderer shall
specify in his offer his service address in Syria .
The tenderer shall clearly
specify in his offer the period during which he shall supply the
material render the unless this is already specified by the contracting
party in the tender books . the delivery period may be considered as
assessment of offers
The method of
calculating the delivery period shall be set forth in the book of
special conditions .
A. The offer shall not be entertained if it runs counter to the books of
general and special conditions .
B. The tender committee may give a time limit
to the tenderers for supplying the documents lacking in their
offers , except the bid bond the quotations and the price analysis bills
if these are required to be submitted with the offers .the tender
committee may also admit those offers containing reservations if the
tenderer agree in the beginning of the tender meeting and before the
quotations are disclosed to cancel his reservations and observe the
provisions of the tender books provided this is confirmed in writing in
his offer.
C. Offers shall be submitted directly to the party specified in the
announcement or sent to it by registered mail provided that in either case the offer should be received by this party and
registered in its general office before the end of the official working
hours on the deal line specified for submission offers which must precede the date specified for the tender
meeting .
D. Only one offer may be
accepted by a given tendrer . the offer
registered first in
the general office of the party concerned shall be adopted . offers may
not be recovered . completed in
the said general office .
A. The tender shall be concluded at the specified time and place in an open
meeting which all tenderers may attend .
B. The tender committee shall unseal the first envelope and examine its
contents and shall then decide to admit the offers of those satisfying
the conditions for specification in the tender and to rule out those who
don’t satisfy such conditions . this shall announced to the
meeting tenderers who shall be returned the second and third envelope
without unsealing them as well as their submitted papers .
C. If there is only one tenderer or if
only one offer accepted the tender shall be repeated after being re announced . the
contracting party may admit
the single offer in the second time .
D. The committee shall unseal the
envelopes containing the technical offer and specifications and announce
their contents to the meeting and
shall rule out those offers that contain reservation that cannot be
entertained according to the books of general and or special conditions
.
E. In the cases that call for the technical examination and xxx of the
offers , the tender meeting committee may adjourn its decision to
another meeting which shall be fixed and announced to the meeting
tendrers . the third envelope containing the financial and commercial offer shall then be postponed
for the sealing kin the meeting to be specified by the tender
committee for deciding over the offers .
F. The accepted offers shall be classified according to the deciding order
of their prices . the committee chairman shall then announce the name of
the successful tendrer who has quoted the lowest price .
G. If two or more offers are equal in quoting the admitted lowest price ,
anew tender shall be held
for these offers only under sealed envelope in the same meeting . if the
quotations are against equal , the result shall be put up to the expenditure authority for selecting on of them .
H. The minute of the tender meting ,
including all the objections , shall be recorded in the report to
be signed by all the committee members and present tendrers , the successful tendrers reluctance to sign shall
not be taken into consideration .this report shall not
be considered an official document.
I. All
documents submitted by the tendrers shall be signed only by the committee members .
A. The decisions of the tender meting shall be taken by majority vote of the
present members . in case of equal votes the chairman shall have a
casting vote
B. The tender meeting shall not be considered
to have attained a legal quorum unless it is attended by the
majority of the committee members provided always they are not less than
three members including the chairman .
C. Objections during the tender meeting shall be forthwith adjudicated by
voting .this shall be recorded in the meeting report.
D. The committee’s decisions announced to the meeting shall be deemed
final
Expenditure Authority
may specify in advanced the maximum price acceptable in consequence of
the tender meeting . this maximum price shall be placed in an envelope
sealed with red wax which shall be opened in the tender meeting by the
tender committee .
The
contents shall not be announced to the tenderer , if there are not
offers that equal to or below this price , the committee shall ask
tenderer to quote new prices under sealed envelope in this meeting .
This procedure may not
be repeated , if the new prices are not equal to the estimated prices or
exceed them by a proportion pre- specification by the expenditure
authority with a higher price than the ended in failure.
The contracting party
may award the tender to one or more tenderers as is may deem fit ,
whereupon a part of the order shall be placed with one contractor who
may not object thereto , provided this is stipulated in the book of
special conditions.
a) The tender report
shall be countersigned by the expenditure authority who shall have the
right to cancel the tender results justified in warning and retained in
the tender file under no circomistances may he revise the results
attained by the tender meeting .
b) The tender shall
then be referred to the authorities concerned (if any ) to examine it in
accordance with the laws and regulation in force .
c) The successful
tendrer shall be considered a contractor only after finalization of the
ratification procedure and after he is being so duly notified to execute
the undertaking the contracting party may retract from execution of the
tender any time before the contractor is so notified and he may not claim any indemnity therefore .
d) If no contract is
included between the contracting party and the contractor immediately
after ratification of the tender, the tender committee's report shall be
considered as a contract by and them after finalization of the legal
procedures of ratification. If the successful tenderer or his agent or
representative fails to attend the tender meeting or to sign the tender
report, the contractor shall be notified that his undertaking has been
accepted either by registered mail or by telegram to be confirmed by
registered mail or of the telegram dispatch, whichever earlier.
e) The tender committee
may accept no underbidding in prices. The expenditure Authority may not
accept any price underbidding except under the following two conditions:
1. That the reduction resulting from underbidding may not be less than 10%
of the price under which the tender has been awarded to the successful
tenderer.
2. That the underbidding tenderer shall enclose the bid bond with his offer.
The successful tendere
shall remain initially bound by his offer throughout the period
specified for this validity in the contract or in the books of conditions. If he is not served the order to
commerce during this period, he shall have the right within seven days
after expiry of the said period to abandon his offer through a letter to
be registered in the contracting party's general office otherwise, his
offer's validity shall automatically renew for another period equal to
the first one.
a) The tender committee shall be set up an order by the Expenditure Authority, provided that one of the contracting party's finance department.
b) The Expenditure
Authority shall issue an order specifying the documents
confirming the availability of the conditions required for
participating in the tender, the procedure of putting up the tender
committees, and all other affairs relating to the tender.
Quotations shall be
invited when it is not possible for the contracting party to determine
integral specifications or conditions for the materials to be supplied,
works to be performed or services to be rendered, in order to examine
the offers and select the best one in the light of good quality, prices
and other conditions.
Without prejudice to the provision contained in the subsequent articles, purchase through call for quotations shall be governed by the provisions of Article 8 (d), Article 9 (a), Articles 10,11,14,15,17,19,10 and 21, Article 22 (b) and (c),and Articles 23 and 24 here of .
a) Quotations shall be invited through advertising and registered letters
addressed by the contracting party to the largest number of prospective
tenderers to examine the
books of conditions, if any and to put forward their offers within the
time limits specified in Article 8 here of, without prejudice to Article 9 (a) here of in case of
advertising.
b) The call for Quotations
shall contain the following information at least :
1. Types of required materials, works or services.
2. Deadline for submission of offers.
3. Validity of the offer.
4. Place of submission of offers.
5. The demand to details the offers with regard to specifications prices,
mode of payment and period of delivery or performance of works.
6. The other conditions which the contracting party deems should be
satisfied by the offer.
They shall not bee
accepted those offers containing specific conditions which according to
the book of general conditions may not be entertained .
a. The tender committee shall examine the offers in closed meeting and
proceed to unseal the envelope the contains the supporting documents for
determining the accepted offers and shall draw up a report containing the minutes of its meeting .
b. The committee shall then unseal the envelopes containing the technical
offers of those whose offers have been accepted these technical offers shall be referred to a technical
committee (s) appointed ad hoc by the expenditure authority in order to
post the offers into
special ledgers and to have them technically examined and compared on
the basis of technical value , manufacture warranty and other guarantees submitted by the
tenderes execution period etc….. after the technical study is
conducted , the envelope containing the financial and commercial offers
shall be unsealed and the prices shall be examined and compared , the
technical committee shall then forward the complete study of the
financial and technical points with its recommendations to tender
committee
c. The minister may appoint a local
or foreign consultant office to carry out all or some of the technical
committees duties .
a. On the strength of the technical
committees report the tender committee shall put forward its new
as to the offer that suits
the best interests of the contracting party .
b. The expenditure authority shall issue
his decision selecting the offer that serves the best interest of the contracting party .
if does not adopt the tender committee’s view . his decision
should be justified .
c. The tendere whose offer has
been ultimately accepted shall be so notified by the contracting party
within seven days from the date of its ratification by the competent
authorities either by registered mail or through a telegram to confirm by registered letter . in these cases notification shall
be deemed to have been effected as from the date of posting in
registered mail or the telegram dispatch , whichever earlier .
Chapter 6 – contest
a. The minister may resort to
the method of contest for
the purpose of laying down studies or drawings for a specific project as
and when there are justifications for following this procedure .
b. The contest announcement shall specify all the points relating thereto ,
specially its subject matter , conditions, procedure of section of
successful entrants , procedure of works of the selection committee and
prices, incentives and privileges to be awarded to the contesters .
Chapter 7 – consensual
contract
The contracting party
may enter into consensual contract with the party it selects in consequence of the direct contacts and according to the procedure
and rules outlined in this chapter .
a. Consensual contracting may be concluded
only in the following cases :
- When the required materials , services or works are exclusively manufactured , owned, marketed, supplied or imported
by a specific
person, company or party or when their prices are governed by a world
exchange house .
- When there are important technical, financial or military reasons or economic agreements that call for the appointment
of a specific party to
supply the materials , perform the services or execute the works .
1. when the required materials, services or work aim at
conducting such research or test as call for specific procedure of execution .
2. when the required materials, services or works have already been placed
in tender, call for
quotation or contest according to the procedure specified herein but no
tenderer has participated or no suitable offers have been presented .
3. upon purchase of real estates when there is no public utility admitting
its expropriation .
4. upon renting of real estates .
5. when it is incumbent to supply materials, render service or perform works
in lieu of the defaulting contractor at his expense, or upon
cancellation of the contract
.
6. in freight contracts and in the policies of insurance on shipped goods .
7. in the cases calling for justifiable speed when the materials services or
works cannot be so quickly ensured by the other methods .
8. when such materials, services or works are required by the armed force
and aim at serving such military purpose as cannot is entered with
public establishments and corporations and their affiliated firms
without prejudice to article 3
(b) hereof .
9. when the required materials, services or works are intended to supplement
a specific project under
execution through a preceding that require the contractor the
performance of the new works .
10. in the case of materials, services and works required for execution of
works by trust .
11. the cases outlined in the preceding clause (a) shall be left to the
expenditure authority's discretion .
The consensual shall
only be required not to have been deprived
of entering into contract with the contracting party or with public
bodies . they may be further required to satisfy all or some of the
condition outlined in Article 10 hereof and to produce the supporting
documents .
a. the consensual contract shall come into force as from the date of placing the order with the contractor after
finalization of ratification formalities the contracting party may decline to execute the contractor who may not claim
any indemnity
therefore .
b. the contractor shall remain bound by his undertaking with the contracting
party in accordance with article 23 hereof .
consensual contracting
shall take one of the following forms :
a. a contract clearly outlining
the rights and obligations .
b. the contractor's undertaking one of the book conditions to accept the performance of the contract in accordance
with the agreed written
conditions .
c. by correspondence according to commercial customs when a contract is
entered with foreign markets .
Without prejudice to
the provisions governing the procedure of delegating a broad the
contracting party's personal , the contracting party's requirements may,
where necessary and as estimated by minister,, be obtained from foreign
markets through xxx committees set up by Ministries orders specifying the duties of the committees
the procedure of purchase and all other provisions relating thereto
without reference to these
regulations provided always that such contracts shall be ratified in
accordance with the pertinent provisions , if any
Chapter 8 – execution by
trust
a) whenever the interest of the contracting party so require or is speedy
action sp requires or if it is no possible to perform the works through
contractors , such works maybe performed by entrusting them to certain party at the contracting party’s
responsibility .
b) the execution of works by trust shall
be approved through an order
by the expenditure authority following upon the concerned party’s
report containing the motivating reasons justifying the execution by
trust along with complete project file and estimate showing the types
and prices of works and other explanatory documents .
The order approving the
execution of works by trust shall be considered implicit permission to
hold tenders , to drew up partial consensual contractors or to effect
direct purchase for supply of the services , materials or works required
for the project in accordance with the provisions before .
Chapter 9- bonds and Down
payments
a) the bid bond for each tender or call for offers shall
be at the rate of 5% of the xxxxxx or of the tender price
estimated by the contracting party the performance bond shall be 10% of
the contract price .
b) with the expenditure Authority’s approval the contracting party may cut
down the bid or performance bonds provided this is to be mentioned in
the invitation to tender and in the book of the special conditions .
in the case of direct
or consensual contract, the amounts of the bonds shall be left to the
Minister’s discretion in each case as he may deem fit .
c) the bid and performance bonds shall be in cash payable to the contracting
party’s cashier or by a check certified by the drawer bank or through
a bank guarantees commercial guarantees may be accepted upon entering
into contract with artists, artistic groups or those who provide
artistic works and designs within the framework of intellectual
production
a) the bid bond shall be returned after final acceptance of the supplies and
services . as regards works , this bond shall be returned after
provisional acceptance this return shall be affected if there are no
obligation upon the contractor as would call for the seizure of the
performance bond .
The successful tendered
shall furnish the performance bond within a period to be specified in
the book of special conditions but not to exceed 15 days from the date
on which he is notified in writing that he has been awarded the tender .
the furnished bid bond may
be considered a performance bond if meanwhile the tendered furnishes the
difference , if any , between the two bonds .
If the bid bond is
furnished in the form of bank guarantee , this must be renewed by a new
guarantee equivalent to the value of the performance bond the bid shall
be returned to the contractor as soon as he furnishes the performance
bond
The contacting party
shall retain the performance bond as security for good performance by
the contractor of his obligation under the contract concluded with him
and for deduction of delay penalties and all other indemnities resulting
from the less and damage incurred by the contracting party in
consequence of the contractors breach of his obligations
Down payments may be
advanced to contractors in accordance with the legal provision
applicable in this connection if the books of special conditions so
stipulate .
Chapter 10 execution remedies
The contractor who
fails to supply the materials to perform the works or to render the
services beyond the period specified therefore shall be charged the
delay penalty specified in
the contract or in the book of conditions even though the contracting
party suffers no damage . the delay penalty may not less than 0.1% (one
per thousand )
per day of the global price and total delay penalties per undertaking
may not exceed 20% of the global price of this undertaking .
The book pf special
conditions or the contract of certain undertakings of special nature may
provide for penalty below the said rates
The Minister may also issue an order specifying the contracts whose nature call for exemption from penalty or its determination by another form .
If the under taking involves the supply of imported materials and if the letter of credit should be established by the contracting party ,the contractor shall in this case submit to the contracting party during the period specified in the book of the special conditions all the documents required of the obtaining the import license and for establishment of the letter of the credit the contractor shall be deemed responsible for any delay in his submission of these documents during the specified period such delay shall be subject to the penalties prescribed in the book of conditions whether this results or not in delay of execution beyond established period
Should
the contractor fail to supply the documents and information referred to
above after 30 days from the expiry of the period specified in the
preceding clause the contracting party shall have the right to cancel
the contract in accordance with the provisions hereof unless the book of
conditions or the contract specify other wise .
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