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:


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.


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


Article 1

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.


Article 2:

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


Article 3:

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 .

Article 4:

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 .


Article 5:

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 .


Article 6:

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


Article 7:

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 .


Article 8:

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.


Article 9:

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.


Article 10:

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 .


Article 11:

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


Article 12:

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 .


Article 13:

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 .


Article 14:

The tenderer shall specify in his offer his service address in Syria .


Article 15:

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 .


Article 16:

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.


Article 17:

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 .


Article 18:

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 .


Article 19:

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  


Article 20:

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.


Article 21:

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.


Article 22:

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.


Article 23

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.


Article 24

 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.

  Chapter 5-Call for quotations


Article 25

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.


Article 26

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 .


Article 27

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.


Article 28:

They shall not bee accepted those offers containing specific conditions which according to the book of general conditions may not be entertained .


Article 29:

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 .


Article 30: 

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


Article 31:

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


Article 32:

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 .


Article 33:

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 .


Article 34

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 .


Article 35

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 .


Article 36 :

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 .


Article 37 :

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


Article: 38

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 .


Article 39:

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


Article 40

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


Article 41 :

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 .


Article 42 :

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


Article 43:

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


Article: 44

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 .


Article 45:

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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