President of the State, By virtue of the constitution provisions, And based on the decision of the parliament in its session held on 24-11-2004 , Issues the following :
Article 1 The enclosed contracts system including the methods of procuring the requirements of the public bodies and selling their funds is sanctioned .
Article 2 This regulation to be applied to all public bodies in the State including the administrative, economic and constructional sectors except the Ministry of Defense and non-constructional establishment belonged to it .
Article 3 The provisions of act no. 1 of 1976 and the legislative decree no. 20 of 1994 are deemed to be amended in correspondence with the provisions of this act .
Article 4 Acting by virtue of the provisions of contracts regulations in force with the public bodies which are subject to the provisions of this act to be terminated .
Article 5 The provisions of this regulation shall not be applied to the contracts which are announced or contracted upon before its coming to be in force .
Article 6 This act shall be published in the official gazette and shall be in force as of 01-01-2005 . Damascus on : 09-12-2004 Head of State Bashar Al-Assad ( Signature ) The Contracts System Chapter one Definitions
Article 1 A The following expressions, wherever they are mentioned in the text of applying the provisions of this system , shall mean the meanings stated besides each :
1 Minister : is the Minister for whom management and supervision the public body belongs or related to .
2 Pay orderer : is the expenditure determiner who is defined according to the regulations in force in the public bodies of the administrative character , or the general manager of the public establishment or company or the public foundation .
3 The Public body : one of the ministries , general administrations, public boards , local administrative units , municipalities, municipality affairs, endowments departments , public establishments , public companies or public foundations .
4 Contracting : is the obligation which the contractor bind himself towards the public body .
5 The nominated contractor : is the contractor who gains the tender or offer or who commits himself with a contract consensually which ratification ingredients havent been yet completed and so who doesnt get the starting order .
6 The contractor : is who binds himself with the public body by a contract to ensure its needs and who is notified by the starting order according to the provisions of this system .
7 The contract : is the group of provisions by which the contractor and the public body are committed including the general and special conditions books , the specifications and all designs, diagrams and documents related to the contract .
8 The Bidder : is the normal or artificial person who duly presents an offer to the public body at its request .
B The public body is permitted to add other identifications which are not mentioned in item A of this article in the special conditions books as necessary for the provisions and conditions of the contracting . Chapter two Provisions controlling the purchases Section One Methods of ensuring the requirements of the public body
Article 2 A The expenses resulted by ensuring the needs of the public body are concluded in one of the following methods :
1 Direct purchase
2 Tender
3 Call for offers
4 Competition
5 Conciliatory contract
6 Execution of works by in trust .
B Subject to the provisions stated in this chapter, the pay orderer shall be responsible to specify the method of ensuring the requirements . Section two Direct purchasing
Article 3 The requirements of the public body is attained by direct purchasing in one of the following cases :
A If the required needs were based on an official tariff .
B If the required needs shall be gotten from a public body which produces them or exclusively sells, distributes or services them .
C If the value of each expense doesnt exceed one hundred thousand Syrian pounds and for each case alone . It is possible to rise this limit up to three hundred thousand Syrian pounds were required by the consent of the Minister and it is possible also to amend these limits by a decision of the Cabinet .
Article 4 A The committees of direct purchase are formed by a decision of the pay orderer in which he shall specify a chairman and members of each committee and their duties , provided that members shall not be less than three and that the committee shall include one employee of the accountancy or financial administration of the public body .
B The direct purchase committees shall seek the interest of the public body during purchasing and shall get more than one written offer from the parties interested in offering the requirements as possible . Then, they shall select the best offer for the public body after checking the quality of materials or the validity of services and the conveniency of prices .
Article 5 A The expenditure resulted by the direct purchase shall be paid according to the invoice which is issued by the offering party . However, in case ( C ) of the third article , the invoice shall be signed by the related direct purchase committee notifying that the requirements are complied with the required specifications and that the prices mentioned in the invoice are moderate ; after completing the other required document .
B The pay orderer is permitted to approve to ensure some requirements which values dont exceed fifty thousand Syrian pounds by a way other than the direct purchase committees according to his own estimation .
C The concluded expenditure invoices shall be ratified by the pay orderer according to the provisions of the item /B/ of this article . Section three The tender
Article 6 The tender : Tendering is referred to when the specifications and conditions of the requirements are accurately defined and the estimated value exceeds the limits determined to the direct purchase.
Article 7 The tender is based on :
A The general conditions book to be issued by a decree based on the proposal of the finance Minister , with no contradiction to the provisions of this system .
B The special conditions book : ( legal, financial & technical ) includes all designs and specifications of the required needs, the date of tendering, bid and performance bonds, delay penalties, period of execution of works and others. This book shall be ratified by the pay orderer .
C A list of supplies and works to be executed with estimated quantities on the basis of the adopted units .
D The prices which the public body defined for each item separately in the works contracts .
E Price list in the works contracts .
Article 8 It the file study didnt help in calculating the quantities accurately, it is permitted that the special conditions book of the works tenders to provide that the bidder shall be responsible for calculating the quantities or works and materials which are included in the contracting or for calculating the quantities of some or these items ; and to consider the total price offered as one price for the whole contracting or the collection of the works and materials which the bidder is responsible for .
Article 9 A The tender shall be announced at least 15 days prior to the final date of offering the bids for the internal tenders and 50 days at least for the external tenders .
B The internal tenders mean the tenders in which Syrian citizens and the Arab countries citizens who reside in Syria are permitted to participate in . The external tenders mean the tenders in which the Arabs and foreigners are permitted to participate in , in addition to those who are permitted to participate in the internal tenders .
C In the cases the required speed, it is possible to decrease the periods provided in item (A) , but, in all cases, it shall not be less than five days for internal trends and fifteen days for external tenders. Estimating the prompt condition is related to the pay orderer . ( In these cases, the announcement of the tender shall include the phrase top urgent ) .
D The day of announcing for the tender and the day of performing it shall be excluded from the abovementioned periods .
E The designs and documents which the tender is based on shall not permitted to be amended after announcing for the tender unless it is re-announced .
Article 10 A The announcement of the tender shall be published in the official advertisement and in a daily gazette , as well a copy of these advertisements shall be fixed in the bulletin board of the public body . In addition, it is possible to make a commercial in TV , radio and all mass media when required . Also, it is permitted to send a copy of the external tender announcement to the concerned parties , the Syrian Arab commercial missions and bodies abroad and the foreign missions adopted in Syria .
B The tender announcement shall at least include the following statements :
1 Subject of the tender .
2 Place and date of offers presenting and the tender session .
3 Bid and performance bonds .
4 The party from which the file of tender can be purchased .
5 The price of the tender file .
6 Period of executing the contracting .
7 The period in which the bidder shall be bind with his bid .
Article 11 A The bidder shall be complied with the following conditions:
1 He shall not be deprived from entering in tenders or from contracting with the public bodies ; and shall not have attachment, provisional seizure or executive seizure for his funds on the behalf of the public bodies .
2 For the Syrian bidders and who are in their capacity, they shall be registered in the commercial register .
3 For the Syrian bidders and who are in their capacity, they shall be registered in the chamber of commerce, agriculture, industry, or tourism .
4 The bidder shall not be convicted for a crime or a dishonorable felony, unless he is rehabilitated .
5 He shall not be an employee in one of the public bodies, and shall not be a member in the executive offices of the municipality within his governorate definitely .
6 The bidder shall not own a factory, company or a branch office in Israel . Also, he shall not be a participant in any company or foundation in Israel . He shall not be a party in a contract of manufacturing, assembly, license or technical assistance with any company, body or person in Israel and shall not practice such an act in Israel in person nor by a mediator ; and shall not in any way support Israel or its military works .
B The conditions included in the paragraphs 1, 5, 6 of item (A) of this article shall be confirmed by written statements which shall be presented by the bidder.
C Applying the conditions stated in paragraphs 4 and 5 of item (A) shall be limited to the normal persons .
D The special conditions book may include specific financial, technical and professional conditions for the bidders ; and in some contractings it may provided to the qualification in advance.
E The special conditions book may include exemption from the two conditions include in paragraphs 2 and 3 of item A of his article in some tenders which natures require that and in the external tenders.
G The public bodies shall be exempted from presenting all documents defined in item A of this article . Also, the foreign companies which have no branch or representative residing in Syria are exempted from presenting the documents defined in paragraphs 2, 3, 4 and 5 of item A of this article .
H The documents defined in paragraphs 2, 3, 4 and 5 of item A of this article shall be issued in a period less than three months when they are presented .
I The documents defined in this article can be substituted by a certificate issued by a public body stating the availability of these documents with it and that they are legal , provided to present these documents upon referring .
Article 12 A The tender committee shall be formed in the public body by a decision of the pay orderer and shall be consisted of three members at least including the accountant of the public body, the financial director or an employee under their supervision as the case requires B It is not permitted that the pay orderer to be the head of tender committee .
C The head of tender committee shall be a university graduate. D The pay orderer may seek help from representatives of the concerned public bodies in the tenders committees .
Article 13 The bidders shall present the required bid bond within the period defined for presenting the offers . The value of the bid bond is defined in the special conditions book and the announcement .
Article 14 The offers shall be presented in two closed envelopes. These two envelopes shall be put in a third envelope addressed to the body defined in the announcement and shall state the subject of the tender and the date defined for its execution : A - The first envelope shall contain the form of participation in the tender and the documents which prove the availability of the conditions provided in Article 11 of this system . This envelope shall also contain a declaration from the bidder that he is aware of the general and special conditions books ( legal, financial, and technical ), and the tables of required supplies and works related to the tender ; and that he has agreed all the conditions and provisions contained in those documents. B The second envelope : contains the financial and commercial offer with the unit and total pricelist as the case requires .
Article 15 A The bidder shall define a selected residence for himself in Syria. B The bidder of Arab citizens who are not residing in Syria and the foreigner bidder can define a selected residence for himself abroad of Syria if the conditions books provided that . C The abovementioned selected residence is considered binding for the bidder even if he moved into another residence if he didnt notified the public body about his new residence in the same country in written . Otherwise, all notifications which are sent to the address of his first selected residence shall be considered correct legally .
Article 16 If the bidder was an agent in commission, he shall expressly indicate to his net commission rate , and that commission shall be paid directly to the agent in Syrian pounds on the basis of exchange which the foreign currency office defines on the date of the documentary credit opening or by the direct change of the value after the final receipt as per the contractual conditions .
Article 17 Taking into consideration item B of article 7 , and paraghraph 6 of item be of article 10 of this system, the bidder shall expressly define the period during which he is bound to supply the materials, perform the services or to execute the works subject of the tender or offer unless it is not defined by the public body; and the delivery period is considered a main members in offers comparing . It is preferred that the delivery to be done as short time as possible . In the case that the offers being equal in all conditions, then the offer which owner undertakes to execute the contracting in a period less than that defined in the other offers will be preferred .
Article 18 The offer will be rejected in one of the following cases : A If it is organized or presented in a way in contrary to the provisions of this system . B If it was presented after the date definite to present the offers . C If there is any deficiency in the documents or the technical specifications which are required from the bidder as per the provisions of this system and the conditions books . However, the tender committee has the right to give the bidders a time limit to complete the losses in their offers except the bid bonds, prices and price analysis tables if they are required in the offer. D The tender committee shall have the right to accept the offers which contains reservations if the bidder has agreed, at the beginning of the tender session, to cancel his reservations and to comply with the provisions of the special conditions books and confirmed that in written before announcing the prices .
Article 19 A The offers shall be presented to the party which is defined in the advertisement directly or they are sent by the registered mail, provided that they shall be delivered and registered in the divan of that party before the end of the official working hours on the day defined for expiry of offers presentation . B Only one offer shall be accepted form each bidder . The offer earliest in registration in the divan of the party which is defined in the advertisement shall be adopted . It is not permitted to recover the offers or to complete or amend them after registration in the abovementioned divan . C One offer can include more than one option if it was provided for that in the special conditions book .
Article 20 A The tender shall be happened in the time and place which are defined for that in an open session which can be attended by all bidders . B The tender committee unlocks the first envelop, examines its contents and decides to accept the offers which comply with the conditions required for participation in the tender ; and to exclude the offers which dont have those conditions . Then, the committee declares that to the attendants and all documents which the bidders presents will be signed by the tender committee . C The unacceptable offers shall be turned to their owner without opening . D 1 If there is only one bidder, or if there is only one accepted offer , the tender shall be re-announced again . 2 The public body is permitted to accept the only offer for the second time if it sees its interest in that . E The committee shall open the acceptable offers and shall declare their contents to the attendants . F In the case that the tender committee is obliged to study and examine the offers , it is permitted to delay the tender session to another date which shall be defined and declared to the attendant. On the second session, the committee shall achieve their task in front of the attending bidders . G After examining the unit and total prices and checking their authenticity, the acceptable offers will be arranged according to their prices starting from the lower price . Then, the chairman of the committee shall declare the name of the contractor who has presented the lower acceptable price . H If two or more offer were equal in the lower acceptable price, then another tendering shall be done only among those who have equal offers on the same session and by the same sealed envelop method .
Article 21 A The decisions of the tender committee shall be made by the majority of the committee members votes who are attending; and in case of equal votes, the party containing the vote of the chairman of the committee will dominate . B The tender session will be considered legal only if the majority of the tender committee including the chairman of the committee attended provided that the number of the members shall not be less than three . C The objections happens during the session shall be settled by voting immediately and that shall be mentioned in the minutes of the session . D The decisions of the committee which are declared to the attendants shall be considered final . E The minutes of the tender session , including all proceedings and objections , shall be registered in a report and all members of the committee and attending bidders shall sign it . Abstention of the nominated contractor and remaining bidder from signing will not be taking into consideration .
Article 22 A The pay orderer is permitted to define in advance the higher acceptable price by the result of the tender by virtue of the report of a concerned committee which is formed for that purpose . That price shall be put in a wax sealed envelope which shall be opened by the tender committee in the tender session and its content shall not be declared to the attendant bidder . B If there is no price offered equal to or less than the price mentioned in item A of this article, the committee shall ask the bidders to offer new prices in sealed envelops at the same session . This procedure will not be repeated during the same session . If the new offered prices were not equal to the estimated prices or if they were higher more than 5% of them, the tender committee shall announce the tender failure .
Article 23 The public body has the right to divide the tender materials among the bidders depending on how it sees better for its behalf. So, a part of the tender material is referred to a bidder without having the right to object, provided that the materials should be divisible and that shall be stated in the special conditions books .
Article 24 A The tender minutes shall be ratified by the pay orderer and he is permitted to cancel the results of the tender for reasons which should be justified in written . However, he is not permitted in any case to change the result which the tender committee reached . B The nominated contractor shall not be considered a contractor except upon completing the procedures of ratification and being notified by that ratification . The public body shall have he right of deviation from executing the subject of the tender any time before notifying the contractor with the starting order without having any right of compensation . C The nominated contractor shall sign the contract within the period defined for that in the special conditions book provided that the period of signing shall not exceed thirty days as of notifying him with the reference . In case of his absence or abstention from signing the contract as per the provisions of the special conditions book and his accepted offer , the bid bonds shall be attached ; and the public body shall have the right to claim for compensation for damages when required .
Article 25 The nominated contractor shall be bound with his offer all during the period which is defined for that commitment in the conditions books or in the announcement or the offer . However, if he was not notified with the starting order during that period, then he shall have the right to abandon his offer after seven days of that period by presenting a written letter to the divan of the public body which made the tender ; otherwise , his commitment with his offer shall be renewed for a similar period as of the day next to the expiry date given to the nominated contractor and so on , provided that the period of commitment of the contractor with his offer shall not exceed six months .
Article 26 Upon announcing the tender, the pay orderer shall have the right to consider it is limited to those who have the conditions and financial and technical qualifications for the reasons related to the nature , quality, and circumstances of the work ; and in this case, the tender committee shall define the accepted names after examining the documents of the bidders and its decision in this matter shall be final , then the procedures of the tender shall be done as it is indicated in the previous provisions . Section four - Calling for Offers -
Article 27 It is turned to calling for offers when the public body is not able to define a unified specifications and conditions for the required needs in order to differentiate among the offers and to select the best in the light of quality, prices and all other conditions .
Article 28 Taking into consideration the provisions indicated in the following articles, the conditions which are applied to purchasing by tender shall be applied to purchasing by calling for offers .
Article 29 A Calling for offers shall either be done by advertisement, by registered letters to the previously qualified companies, by both ways or by any other communication means . The public body directs its calling to the largest number of bidders . B Calling for offers shall contain the following documents at least : 1 Subject of the calling for offers . 2 Place and the final date of offers presenting . 3 Bid and performance bonds . 4 The party from which the file of tender can be purchased . 5 The price of the tender file . 6 Period of executing the contracting . 7 The period in which the bidder shall be bind with his bid .
Article 30 The offers shall be presented in three closed envelopes. These three envelopes shall be put in a fourth envelope addressed to the body defined in the announcement and shall state the subject of the offer calling , according to the following : A - The first envelope shall contain the form of participation and the documents which prove the availability of the conditions provided in Article 11 of this system and other required conditions . This envelope shall also contain a declaration from the bidder that he is aware of the general and special conditions books ( legal, financial, and technical ), and the tables of required supplies and works related to the tender ; and that he has agreed all the conditions and provisions contained in those documents. B The second envelope : contains the technical offer and specifications ; and it shall not contain any prices , reservations or legal or financial conditions ; and in case that there is any of them , it will not be taking into consideration . C The third envelope : contains the financial and commercial offer with the unit and total pricelist, which shall be organized by the bidder clearly without any scrubbing, striking off, or insertion ; and it shall not contain any legal or technical reservations or conditions; . and in case that there is any of them, it will not be taking into consideration .
Article 31 The tender committee will assume examining the offers in a private session without being attended by the bidders as follows: A The tender committee unlocks the first envelop, examines its contents and decides to accept the offers which comply with the conditions required for participation in the offer calling ; and to exclude the offers which dont have those conditions . Then, it refers the second envelop closed to the committee or the technical committees . B The technical committee shall be formed by a decision of the pay orderer and shall contain jurist and financial members . The pay orderer can adopt an internal or external consultation experience office to assume the tasks of the technical committee or some of them . C Before receiving the technical envelops, the technical committee defines the basis of offers evaluation as per the technical aspect based on the provisions of the special conditions book ( legal, technical and financial ) and puts the minimum point technically acceptable according to the nature of the project . Then, it shall provide these basis to the tender committee for acknowledgement and keeping a copy in the file of offer calling . After seeing the evaluation basis, the technical committee/s will unlock the second envelop which is referred by the tender committee and study the offers as per technical aspect according to the evaluation basis . Then, they will compare between the offer according to the technical value, manufacturing guarantees and other guarantees presented by the bidders ; and will establish a report about the events of its job defining the acceptable and unacceptable as per the technical aspects in addition to defining the degrees of quality of the acceptable offers . This report shall be submitted to the tender committee . D The public body shall have the right to ask for indications from the bidders whose offers are accepted . Also, it shall have the right to ask for correction of their offer on the behalf of the public body, in which case, all bidders shall be given the opportunity to correct or amend their offers up to the date defined in the notification presented to them , and they will be given enough clarifications which help them to present their new offers with specifications that meet the willing of the public body . All bidders shall be given equal opportunities . E After observing the technical committee/s report, the tender committee will unlock the financial envelop of the technically acceptable offers ; and it will refer them with the report of the technical committee/s to the technical committee in order to study the financial offers and to compare between them subject to the provisions of article 17 of this system ; and on the basis of technical quality points, durations of execution and prices . All that shall be filled in special tables; and by their results, a report shall be established and signed by all members and submitted to the tender committee with recommendations . G By virtue of the technical committee provided in item E , the tender committee shall choose the most suitable offer for the behalf of the public body . H The minutes of the tender committee shall be signed by the pay orderer who is permitted to cancel the results of offers calling for reasons which shall be justified in written . However, he is not permitted in any case to change the result which is reached by the tender committee . I The public body shall notify the owner of the most suitable offer with acceptance of his offer after ratifying the minutes of the tender committee either by the registered mail, telegram or telex ; and shall confirm the content of the notification by a registered letter . The notification shall be considered achieved as of the date of depositing the registered mail or sending the telegram or the telex , which comes first . J - The nominated contractor shall sign the contract within the period defined for that in the special conditions book provided that the period of signing shall not exceed thirty days as of notifying him with the reference . In case of his absence or abstention from signing the contract as per the provisions of the special conditions book and his accepted offer , the bid bonds shall be attached ; and the public body shall have the right to claim for compensation for damages when required .
Article 32 The provisions of article 25 of this system shall be applied on the calling for offers ; and the period of the nominated contractor commitment with his offer shall start as of the day next to notifying him in written . Section five The competition
Article 33 A The Minister can resort to the method of competition either to put studies or designs for a specific project or to execute a project which studies or designs are achieved previously or both altogether when there is justifiable reasons to adopt this method. B The competition shall be done on the basis of a previously achieved program which purposes are defined in details . It is possible to define the maximum amounts estimated for execution of the project . C The competition is announced in the same method of announcing for purchase orders by calling for offers . It is possible to provide un-acceptance of any person in this competition before submitting his documents or the works which he has executed to the public body to obtain its approval for his participation .
Article 34 A When the competition is for preparing studies or designs for a specific project, then the program in item B of the previous article shall define : 1 The awards , prizes or privileges which will be granted to the winners . 2 The property of the successful and unsuccessful studies and designs . B The awards, prizes and privileges shall be given by virtue of the report of an arbitrators committee which is previously defined by the concerned Minister upon announcing for the competition . This committee can recommend non-worthiness of anyone for all or a part of those prizes, awards and privileges if it found that the presented studies and designs didnt achieve the required technical standard .
Article 35 A When the subject of the competition is to execute a previously studied project , then the program defined in item B of article 33 shall define the conditions which shall be available in the offers of the competitors and especially : 1 Stating the required amount for execution with dividing the amount to materials, works, charges and profits . 2 Period of execution . 3 The program of execution including the used materials . 4 The required insurances for guarantee the execution . B When the subject of the competition is to put a study or design of a specific project and to execute this project altogether, the provisions of the previous article shall be applied and the competitors shall additionally be requested to present a primary study and design for the required project .
Article 36 It is permitted that the program states granting compensations for the projects which owners dont win in spite of that they are identical to the program and in an acceptable technical standard.
Article 37 A The arbitration committee has the right to send for the competitors in all cases mentioned in this chapter and to discuss them in their projects and offers and to insert some amendments. B The committee shall write down the results of its works in a special report from which a summery will be announced by the means which the public body sees relevant ; and its recommendations will be in force after being ratified by the pay orderer and submitted to the concerned authorities . C This report shall substitute the contract after being duly ratified . Section six The Mutual Agreement Contract
Article 38 The public body is permitted to conclude a mutual agreement contract with whom it chooses based on the direct communications according to the rules and conditions indicated in this chapter .
Article 39 The mutual agreement contracting is permitted in the following cases : 1 When the manufacturing, property, trading in, supplying or importing of the needs required by the public body is limited to a specific person or company ; or if it is necessary to purchase those needs in lieu of production . 2 When there are important technical, financial or military reasons which require that a definite party shall ensure the needs of the public body . 3 When the purpose of the public body needs are for achieving researches or tests which require to follow up a definite method of execution other than the ordinary method . 4 In purchasing real estates when there is no public use which justify their property and based on the estimations being put by a committee specialized in the field of real estate purchasing which shall be formed by the pay orderer for this purpose . 5 In real estates renting . 6 In the case of failure of the tender or the calling for offers for two successive times , provided that the mutual agreement contract shall be based on the same conditions and specifications defined in the special conditions book and the announcement . 7 In the contracts of shipment and insurance for the shipped goods. 8 When contracting is done with the public bodies , public establishments and public foundations , taking into consideration the item B of Article 3 of this system . 9 In the emergency cases which require justified speed when there is no possibility to supply materials, achieve services or execute works in other methods by the required speed . 10 The contracts of supplying materials which are subject to the international stock market . 11 When the execution of the required needs are a completion of the definite project under execution of a previous contracting if there were technical and reasonable necessities which require the contractor to continue of the new works . B The estimation of the cases stated in item A is attributed to the pay orderer . C Mutual agreement contracting is permitted in other cases which estimation is attributed to the concerned Minister by the result of justificatory study indicating the necessity which requires to follow up this method including the basis to be adopted in defining the price and all other conditions . D In the case provided in paragraph 11 of item A of this article, it is necessary to be certain that there are technical or financial reasons which made the new works not noticeable in the previous contracting . In this case, the new contracting shall form an attachment of the previous contracting ; and the general conditions book shall state the procurements which shall be adopted for limiting the works which the contractor has executed during the previous contracting .
Article 40 A It is sufficient for the mutual agreement contractors to have the legal qualification for contracting and that they are not deprived from contracting with the public body or with all other public bodies; and it is permitted to demand the availability of all or some of the conditions provided in article 11 of this system and to ask for presenting documents to approve that . B It is possible to stipulate presenting the bid bonds or to exempt it by the pay orderer .
Article 41 The mutual agreement contract is subject to the procedures provided in the article 24 of this system ; and the commitment of the contractor and releasing him from that commitment shall be according to the provisions of article 25 .
Article 42 Mutual agreement contracting is done in one of the following methods : A By organizing a contract which mentions the obligations and the rights clearly . B By a commitment to be written in the special conditions book including the agreement of the contractor to observe himself according to the conditions agreed upon in written . C By correspondence according to the commercial rules when contracting is concluded with the external markets .
Article 43 Taking into consideration the provisions in force related to delegating the public body employees abroad - when the case requires as per the estimation of the Minister and after obtaining the approval of the Prime Minister - its permitted to ensure the requirements of the public body from the external markets by committees to be formed for that purpose by decision of the Minister which define the tasks of those committees and the way of ensuring that purchases and all provisions related to that without being bound with the provisions of this system , but provided that the contracts shall be ratified according to the provisions in force . Section seven Executing works in consignment
Article 44 A Every time the interest of the public body, the necessity of speed or the impossibility o executing the works by contractors ; these works can be executed in in trust on the responsibility of the public body which assumes to execute them whatever the amounts of their costs were . B Executing the works in in trust is approved by the decision of the Minister by virtue of the report of the concerned public body including the reasons which justifies executing works in in trust and to be enclosed with the complete file of the project with an estimative statement including the type of works, their quantities, prices and other illustrative documents .
Article 45 The decision of approval for executing works in in trust is considered an implied permission to make tenders , organizing partial contracts in agreement or direct purchase to supply the materials, perform services and executing the works required for the project as per the provisions of this system . Chapter three Securities and advance payments
Article 46 A Taking into consideration the provisions of law no. 1 of 1976, the legislative decree no. 20 and other legal provisions which include exemption from presenting bid or performance bonds , The bid and performance bonds of each tender, calling for offers or a mutual agreement contract are defined in the special conditions book and the announcement as follows : - Bid bonds : by the rate of 5% of the estimated value of the contracting (( The estimative statement which is defined by the public body )) or by a lump sum when there is no estimative statement . - The performance bond : with a rate of 10% of the contract value . B The pay orderer can decrease the bid and performance bonds provided that it shall be mentioned in the special conditions book and the announcement . C the pay orderer is permitted to exempt from the bid and performance bonds in the contracts of supplying spare parts and contracts of maintenance works . D By an advance approval of the Minister, it is permitted to exempt from the bid and performance bonds in the special cases which nature requires that . E The bid and performance bonds can be done either in cash or to be paid in one of the funds of the pubic body or in its bank account if any , or a bank guarantee, transfer or a check confirmed by the resident banks adopted by the concerned public body in Syrian Arab Republic .
Article 47 A The bid bond shall be turned back to whose bids havent been accepted by the tender committee immediately . While the bids of those who havent succeeded in the tender or the calling for offers or havent been contracted with will be turned back after ratifying the pay orderer to the minutes of the tender committee . B The performance bonds shall be paid back to their owners after the final reception in the case of supplies and services ; while in case of works, the whole performance bonds shall be paid back after the provisional reception if there is no obligations upon the contractor which involves attachment of the performance bond .
Article 48 The nominated contractor shall present the performance bond within the period defined in the special conditions book , provided that this period shall not exceed thirty days as of the date of the written notification of referring the contracting to him and before signing the contract . The presented bid bond may be considered performance bond within the abovementioned period if he settled the difference between the two bonds if the bid bond were less than the performance bond . If the bid bond were presented by a bank bail, it shall be replaced by a new bail equal to the value of the performance bond ; and the public body will keep the performance bond to ensure the good execution of the contract and to deduct the delay penalties and all compensations resulted by damage and defect due to failure of the contractor in his obligations .
Article 49 Taking into consideration the provisions stated in the law no. 1 of 1976 in the respect of the public construction companies , it is permitted to give the contractor an advance according to the following conditions : 1 The special conditions book and the announcement shall provide to that . 2 The advance shall not exceed 15% of the contract value . 3 The advance shall be paid only after giving the starting order and presenting a bank bail not less than the value of the advance. 4 The contractor shall loose the right to claim the price rising occurred after receiving the advance by an explicit statement in the conditions book and the contract . Chapter four Supports of performance
Article 50 A Taking into consideration the provisions of next article 51 ; the delay penalties provided in the contract and the conditions books shall be imposed on the contractor who delays in supplying the needs of the public body even if there is no damage occurred to the public body provided that the daily penalty shall not be less than 0.01% ( one per thousand ) of the total value and the total delay penalties shall not exceed 20% ( twenty percent ) of the total value of the contract . It is permitted to calculate the daily delay penalties on the basis of the value of the part delayed to be delivered if it was provided in the special conditions book or the announcement ; provided the realization of the following two correlated conditions : 1 Other items shall be delivered within the definite time . 2 The part which is delayed in delivery shall be independent in the ordinary usage from other delivered parts . B The technical penalties which are provided in some contracts shall not be considered as delay penalties .
Article 51 A In some special contractings, it is permitted to decrease the total delay penalties from the rates mentioned in item A of the previous article , if it was provided for that in the special conditions book and in the contract . B It is possible to exempt from the delay penalties or to define them in a different way in the cases which are defined by a decision of the concerned Minister according to their private essences .
Article 52 If the subject of the contract is to supply imported materials and that opening the documentary credit is the responsibility of the public body , in this case the contractor shall present to the public body all required documents and information for obtaining the import license an opening the credit ; and the contractor is considered responsible of any delay occurs in presenting these documents and information . This delay shall be subject to the delay penalties provided in the conditions books if they caused a delay in execution or not . In case that the contractor delayed in presenting the abovementioned documents and information for thirty days after the date defined in the conditions books, the public body shall have the right to draw the contracting according to the provisions of his system unless it is provided else in the conditions books .
Article 53 A The contractor shall not be responsible of the delay caused by the public body or other public bodies . B The contractor shall be exempted from the delay penalties if he were subject to a force majeure for the period of delay caused by that force of majeure . C The contractor shall be exempted to execute the contracting if he faced a total impossibility to execute the provisions of the contracting, and if that were resulted by circumstances out of his control and will . D If there were general exceptional circumstances or events which were unable to be expected and caused the execution of the contracting impossible or exhausting and which threaten for gross loss for the contractor, the contractor shall have the right to claim for fair compensation . E Deciding about the case stated in item A of this article is the right of the public body ; and also it has the right to decide in the cases applied on items B and C of this article based on the request of the contractor after the approval of a committee to be formed for this purpose by a decision of the Minister as follows: - A consultant from the State Council, to be appointed by the Chairman of the State Council, as ( Head of the committee ) - A representative from the Finance Ministry, as ( member ) - A representative from the public body in the position of director at least, as ( member ) - The contractor or his representative, as ( member ) - A representative from the Central Board of Financial Control, as ( member ) . The decisions of the committee shall be adopted by the majority of votes of the attendant members ; and in the case of equality of votes, the party contains the vote of the head of the committee shall prevail. The decision of the committee in this case shall be final and irrevocable . However, deciding in the case stated in item D of this article is related only to the administrative judicial authorities . G The contractor shall present all his requests for expanding the period of the contracting resulted by the sudden events, emergency cases or the force magueres during the execution of the contract within fifteen days as of the date of the cause that is resulted to delay; and shall illustrate the reasons which forced the delay . If the contractor didnt present this request within the abovementioned period shall be considered a confirmation by him that there is no reasons justify the delay and accordingly as loosing his right of objection for the penalties composed on him due to that delay . H Each of the head and members of the committee stated in item G shall be given a compensation of two hundred Syrian pounds for each session and this compensation is not subject to the maximum limits of compensations in force . The contractor shall bear these compensations in all cases . It is permitted to amend that compensation by a decision of the Prime Minister .
Article 54 A The pay orderer shall have the right to draw the execution of the contracting from the contractor and to execute it on his own account in the following cases : 1 When the contractor doesnt start execution of the contracting in the definite time for that according to the provisions of this system or the conditions book . 2 When the amount of totally rejected quantities exceed one third of the contracted quantity or one quarter of any part of it if the contract provides to deliver it in successive batches . 3 If it has been proved to the public body that the contractor committed acts of cheating , play or bribery . 4 If the contractor has breached his obligations and abstained from repairing his faults within the period to be defined by the public body . 5 If the contractor breached the determined work program for the fear of non-fulfillment of the work on the definite date if there were exceptional technical or administrative necessity achieve the work on this date; or it was expected that the delay penalty will exceed the rate defined in article 50 of this system or it actually exceeded it . 6 If the contractor declared his failure to continue in executing the contracting . B The contractor will be notified by drawing the execution of the contract for one time and in a period to be defined in the notification before actually drawing the contracting in the cases stated in paragraphs 1 2- 3 4 5 of the previous item . The contractor shall have the right to present his objections to the public body within this period . However, in all cases the contractor shall be responsible for execution during that period and the public body shall decide about the objection within a period not more than fifteen days as of the date of registering the objection at the divan of the public body . C The pay orderer shall have the right to give up this procedure if the contractor presented relevant guarantees for the good execution of the contracting and if that was on the behalf of the public body unless starting order havent been given to the new contractor .
Article 55 A Upon drawing the contracting execution or recoiling the contractor, the pay orderer shall have the right to ensure the needs on the account of the contractor according to the following : 1 By tendering or calling for offers in the ordinary cases . 2 By the method of execution on in trust or mutual agreement when tendering or calling for offers fail ; or when there are actual technical or administrative necessities which involve to execute the works by a way other than tendering . B The contractor shall be instructed about the procedures decided according to item A of this article . C If there were savings in prices as a conclusion of executing the contracting according the provisions of item A of this article, that savings shall be the right of the public body .
Article 56 The general conditions book shall state the cases in which the public body has the right to intervene in supporting the workshops of the contractor on his account or to participate in their management , and it shall provide the way of accounting the contractor and the method of practicing this power in the those cases .
Article 57 The contractor is considered notified for his obligations, delay penalties and all other penalties by the limited time which is defined in the contract or the conditions books without the need for any procedure .
Article 58 A The contractor who establishes mala fides or incompetence during the execution of the public body contractings shall be deprived from contracting with the public body by a decision of the Minister . This deprivation shall be temporary for a period not exceeding five years . However, the deprivation from contracting with all public bodies shall be done by a decision from the Prime Minister based on recommendation of the competent Minister .
Article 59 The contracting is considered definitely revoked in the following cases : A Death of the contractor if his personal qualifications are taking into consideration in the contracting ; but if they are not so, the contracting shall not be revoked for this reason unless the public body sees that the successors of the contractor dont have the relevant guarantees for the good execution of the work . In this case, revoking shall not have any compensation for any contractors ; and the insurances shall be returned back to the successors if there is no other obligations are incumbent to the contractor . B Insolvency of the contractor . C The judicial liquidation , but the public body has the right give approval to the contractor to continue executing his obligations if the court permitted that. D In case of breaching the provision of paragraph 6 - item A - article 11 of this system was proved , the insurances of the contractor shall be attached without violating the right of the public body for claiming the contractor by the compensations resulted from the damages befall to the public body due to revoking .
Article 60 A The pay orderer shall have the right to revoke the contracting upon the final deviation from executing it due to the requirements of the public body . He also has the right to suspend the execution of works temporarily . B If suspension period exceeds one full year, the contractor shall have the right to revoke the contracting if he request that . C By virtue of the provisions of this article, revoking or suspension of contracting execution shall give the contractor the right of fair compensation for the damages he actually incurred . This compensation shall be estimated by the judicial authorities . Chapter Five Different provisions
Article 61 A Materials, services or works will be received by special committees which will be formed by the public body . The general conditions book shall stipulate the manner of forming those committees and the manner of practicing their jobs . B The special conditions book shall define the required guarantees for the conformity of the supplied needs on the conditions of the contracting . In this case, receiving shall be achieved in two steps : The temporary and the final receipt . The special conditions book shall also stipulate the rights and the corresponding obligations in each of these two steps .
Article 62 A The pay orderer is permitted to increase or decrease of quantities contract upon during the period of the contract execution by a rate not exceeding 30% of each item or material of the contracting separately , in the same conditions and prices of the contract , without the need of a new contract provided that the total amount of the whole increase or decrease shall not exceed 25% of the total value of the contract . B In the case of increase, the contractor shall be given an additional period relative to the nature and amount of this increase only for this increase .
Article 63 Taking into consideration the provisions of articles 49 and 53 of this system, if the cost of total parts which havent been executed increased in a rate more that 15% of their value due to increase of prices by virtue of the contracting, after presenting the offer and all during the execution of the contract, then the contractor shall bear 15% of that increase and the public body shall bear the remaining .
Article 64 If there a decrease of prices occurred after presenting the offer, then the public body shall have the same rights of the contractor according to the provisions of the previous article .
Article 65 A The Syrian contractor or who is in his effect, the Arab and the foreigner contractor shall define a selected residence in Syria. This residence shall be explicitly mentioned in the contract; and it shall bind the contractor even if he has moved from it to another one unless he notifies the public body in written about his new selected residence at the same town . Otherwise, all notifications which are sent to his first selected residence shall be considered correct legally. B All notifications, correspondences, warnings and notices which are sent from the public body to the contractor shall be considered correct upon delivering them in person or to his agent or legal representative , or upon sending them to his, his agents or his representatives selected residence in the address defined by him in the contract by a registered letter via one of the means which are legally approved . The contractor shall be considered notified by these notifications, warnings and correspondences : 1 Immediately by delivering them to him, his agent or his legal representative . 2 Within 24 hours if they were sent by telegram or telex. 3 Within five days for contracts if they were sent by registered mail to his selected residence defined in the contract . In case of impossibility of notification according to what mentioned in this article, the public body has the right to notify the contractor by one of the local gazettes as required .
Article 66 A The administrative jurisdiction in Syrian Arab Republic is the concerned reference for judgment in all disputes arise from the contract . B It is possible to stipulate in the special conditions book and in the contract to resort to arbitration as per the regulations followed up before the administrative jurisdiction . The arbitration committee is formed under the headship of a consultant from the State Council to be nominated by the Head of the State Council and two members , one is selected by the public body and the other is selected by the contractor . C By approval of the concerned Minister in person, the external contracts can stipulate for a special arbitration party contrary to the provisions of the previous items A and B.
Article 67 Syrian law is considered the exclusive reference in all matters related to the contract correctness, interpretation and application and in any dispute may arise as a conclusion of its execution .
Article 68 A In all matters which are not mentioned in the contract, the special conditions book ( legal, technical and financial ), lists of quantities and prices and the general conditions book ; the contractor shall be subject to this system in tendering, calling for offers or upon concluding the contract in the case of mutual agreement contracting . B The offer of the contractor and all documents attached to it are considered a part and parcel of the contract ; and as soon as the contractor signs the contract, he should be considered aware of all those documents and that he has understood them . C In case that there is any contradiction between the provisions of these documents, the provisions stated in them shall be applied according to the following sequence priorities: 1 The contract 2 The special conditions books ( legal, technical and financial) 3 The general conditions book . 4 The technical specifications and designs and in case of contradiction, the detailed layouts shall be preferred to the general layouts ; and the special technical specifications shall be preferred to the general technical specifications . 5 The price list . 6 - The
