CENTRAL TENDERS COMMITTEE ARTICLE 1 A public tenders committee shall be set up with the title CENTRAL TENDERS COMMTTEE

.Ascribed there to and shall be attached to the Council of Ministers This committee shall recei e and decide public tenders and shall award such tenders .to the most suitable tendered in the li!ht of the procedure outlined herein ARTICLE 2 Ministries and !o ernment department shall not import commodities and "or commission contractors to carr# Out some wor$s e%cept b# wa# of public tender throu!h the central tenders committee specified in the precedin! article A public tender could be restricted for participatin! b# contractors whose names are appro ed in lists prepared b# the .authorities concerned and appro ed b# the central tenders committee All pro isions !o ernin! public tenders shall appl# to restricted tenders &the fore .&!oin!s accepted ARTICLE 3 E%cepted from the pro isions of the precedin! article' a !o ernment authorit# could independentl# import Commodities and " or commission the e%ecution of wor$s direct or b# wa# of tenders and not throu!h the central tenders committee if the alue of the contract is no in &e%cess of (D )*** &Modified b# Law No +,"-.Such a contract shall more than once in one calendar month Also' one transaction shall not be parceled in to se eral monthl# deals. The alue of each bein! within the limits of (D )*** The Central Tenders Committee shall' if the alue is in e%cess of the limit outlined in the precedin! para!raph' allow a !o ernment authorit# to import a commodit# and " or to commission the e%ecution of wor$ b direct labor if it is deemed in the public interest because of the t#pe of !oods of the nature of the re.uired wor$s or the .ur!enc#' etc The Central Tenders Committee shall be issued on the stren!th of a memorandum .sent b# the !o ernment authorit# appl#in! for such ARTICLE 4 0T/E Central Tender Committee shall be constituted as follows members appointed for a term of two #ears b# a decree from the Council of ,.1 Ministers' sub2ect to reappointment. The Council of Ministers shall fi% their

remunerations and shall appoint a Chairman and a Deput# Chairman to the .Committee from amon!st the said members .A representati e from the Ministr# of 4inance 3 .A representati e from the le!al department 5 &A representati e from the 7lannin! 8oard &ministr# of plannin! 6 .A representati e from the 9o ernment authorit# for which the tender has been let ) A representati e from the 9o ernment from the 9o ernment authorit# which will 1 .super ise the e%ecution of the tender :umran at contract tender Committee meetin!s shall not be there unless site members' at least' or present' and which should include the chairman or the Deput# .Chairman and the representati e of the le!al Department ARTICLE 5 A Tender participatin! in public tenders shall ha e to meet with the followin! 0prere.uisites /e shall ha e to be (uwait merchant whether an indi idual or a firm re!istered 0, .with (uwait Commercial Re!istr# and (uwait Chamber of Commerce and ;ndustr# /e could be a forei!ner pro ided he has a (uwaiti merchant actin! as a partner or a!ent established b# an official authenticated contract and pro idin! the central .Tenders Committee drafts special statutes for ma2or pro2ect /e shall ha e to be re!istered in the Cate!or# List of appro ed Contractors or 03 .suppliers as per the pro isions of the herein after mentioned articles ARTICLE 6 The Secretariat of the Central Tenders committee shall prepare a re!istration list for supplies appl#in! for re!istration. Those to be entered in the importers list shall ha e .to meet prere.uisites specified in 7ara , of the precedin! article ARTICLE NO 7 The Central Tenders Committee shall entrust the matter of classification of <contractors for public tenders to a committee comprised of A representati e from the Central Tenders Committee. Elected b# this committee. , .As chairman of the classification committee .A representati e from the Ministr# of 7ublic =or$s 3 A representati e from the ministr# of communication post' Telephones an 5 tele!raphs A representati e from the ministr# of Electricit# > water 6

.A representati e from the ministr# of 4inance ) The Central Tenders Committee shall appoint a Secretar# to the Classification .Committee The Committee could' in the course of its wor$' ma$e use of the ser ices of .technicians and e%perts of the arious State establishments ARTICLE 8 .The classification Committee shall classif# the contractors in the followin! cate!ories CATEGORY 1 Shall be formed of contractors who are able to carr# out ma2or constructional pro2ects .of hi!h en!ineerin! standards' the initial cost which bein! in e%cess of (.D , Million Contractor in his cate!or# could participate in all t#pes of public tenderin! within the .limit of (D ) Million unless the alue of a tender let e%ceeds this amount /owe er' this cate!or# of contractors shall not participate in tenders worth less than .(D )**.*** CATEGORY 2 Shall be formed of contractors whose technical and financial potentialities permit their .participatin! in tender worth not in e%cess of (D , million The contractors under this cate!or# shall not be permitted to simultaneousl# e%ecute .se eral 2obs if the total alue of the remainin! wor$s is in e%cess of (D , million CATEGORY 3 Shall be formed of local contractors who are allowed to participate in tenders' pro idin! the total alue of the wor$s the# are simultaneousl# e%ecutin! is not in .e%cess of (D )**.*** CATEGORY 4 Shall be formed of local contractors who are allowed to participate in tenders. 7ro ided the total wor$s e%ecuted at the same time is not worth in e%cess of (D .3)*.*** ARTICLE 9 The Classification Committee shall ha e the contractor re!istered in the cate!or# conformin! to his financial and technical status and the 2obs pre iousl# e%ecuted b#

him. And shall ha e to issue its decision within one calendar month from the date of application for classification. An# application shall be considered re2ected unless a .decision has been issued b# the Committee within the said period The Committee shall notif# the applicant in respect of its appeal to the Central Tenders Committee in respect of the decision !i en b# the Classification Committee re2ectin! his re!istration or en2oinin! his classification under a cate!or# inferior to the one applied for. The decision of the Central Tenders Committee in this respect shall .be final ARTICLE 10 A contractor shall not permit' unless he"she is a cate!or# contractor' to enter in .!eneral contracts worth in total in e%cess of the ultimate permissible limit Also no tenders shall be awarded to him if the alue of the said added to the alue of the wor$s #et to be completed at the time of atonin! the tender' be in e%cess of the .ma%imum permissible fi!ure' ta$in! into consideration he pro isions of Article + ARTICLE 11 Not one person' or a !roup of persons' shall be permitted at his time of classification to re!ister under more than one name and"or to submit more than one bed per .tender. E%ceptin! alternati e offers where the conditions of the tender so permit As for person ha in! shares in separate companies bein! independent in finance' bod# corporate' en!ineers' staff and !eneral administration set up' such a person could upon classification' ha e himself re!istered althou!h each of his independent .companies mi!ht ha e been re!istered ARTICLE 12 A Contractor' after a lapse of one #ear followin! classification' could appl# to the Classification Committee for reconsideration of the cate!or# he is re!istered under and to up!rade him to a hi!her cate!or#' A decision !i en b# he committee in this .respect is sub2ect to appeal before considered final A contractor' upon the endin! of each #ear' could reiterate this re.uest. Such re.uests for reconsideration of classification shall be sub2ect to pro isions of Article ? .hereof ARTICLE 13 The 9o ernment shall not be responsible for establishin! special letters of credit Allocatin! special pro isions for importin! commodities from abroad unless this is

deemed necessar# under he circumstances' b# the !o ernment authorit# concerned .and unless such has been specified in the tender conditions (PART (II PROCEDURE GOVERNING LETING OF TENDERS AND FILLING OF APPLICTIONS ARTICLE 14 The !o ernment authorit# concerned' prior to lettin! a public tender for the suppl# of a commodit# or for the e%ecution of wor$s' shall ma$e a draft detail specification about each and e er# article of wor$ !i in! the necessar# instruction to the contractors' complete detail drawin!s' accurate detailed bills of .uantities showin! unit items procedure to be followed in carr#in! out the contract and the penalties liable to be imposed in the e ent of a iolation to the pro isions of the contract and"or in the e ent of dela# in e%ecution' as wall as the form of Tender and 9eneral .Conditions of Contract ARTICLE 15 The Central Tenders Committee' on the stren!th of the re.uest made b# the 9o ernment authorit# concerned' shall ad ertise the tender in the Official 9a@ette The minimum possible period for alidit#' after the tenders are opened' shall be .specified' so that such will not be in e%cess of ?* da#s ARTICLE 16 The ad ertisement shall show the date and time for the return of the tender' the alidit# period' the product to be the supplied and"or the wor$ to be e%ecuted' he cash fees per cop# of the terms and conditions of tender and the authorit# to which the tenders are to be submitted. This authorit# shall be the Main Office of the Central .Tenders Committee ARTICLE 17 The tender documents which include the terms and conditions of tender' bills of products or wor$s etc' shall be prepared before the tender ad ertisement is published' so that these could be handed o er upon re.uest to an# part# after pa#in! .the scheduled cash fees to the authorit# specified b# the Central Tenders Committee ARTICLE 18 The !o ernment authorit# re.uestin! a restricted tender shall produce a list of Contractors to which the tenders shall be confined and shall offer such list to the .Central Tender Committee with a iew to directin! an in itation for participation

ARTICLE 19 The Central Tenders Committee shall notif# the 9o ernment authorit# connected with the tender and shall forward a cop# of the official 9a@ette in which the .ad ertisement has been run' to the latter authorit# ARTICLE 20 A Tenderer shall neither be a member of the Central Tenders Committee nor an official of the 9o ernment authorit# re.uestin! the tender. The term Tenderer in appl#in! the pro isions of this article' shall co er the partner' a!ent' &clientA official .and member of the 8oard of Directors of the tenderin! firm or establishment ARTICLE 21 .Tenders shall be submitted in the official tender documents issued to tenderers ARTICLE 22 Tenders shall be returned dul# filled in and completed in all aspects accordin! to the conditions outlined in the tender documents and in e%act conformit# with the implications of such documents. The tenderer shall and effect an# alteration &lit0 .amendmentA in the tender documents An# tender in itation of this pro ision is considered null and oid unless the Committee unanimousl# a!rees to entertain it on account of considerations bearin! .of the public interest ARTCLE NO 23 Should the tender documents permit submittin! alternati e offers and should be tenderer be desirous of submittin! one or more alternati e offers' then he shall ha e to obtain further set of official tender documents for each alternati e offer' and shall ha e to le!ibl# insert on each set of documents to the effect that said represents an .alternati e offer ARTICLE 24 7ricin! of all tenders shall be in the official currenc#' unless it is otherwise specified in the tender documents. The total sum shown in the form of tender shall be the fi!ure considered b# the Central Tenders committee re!ardless of an# fi!ure which mi!ht appear in the 9eneral Summar# or which mi!ht occur in an# other place in the tender documents. This in also re!ardless of an# errors which the tenderer mi!ht commit whilst calculatin! his total sum. The tenderer shall not be permitted to effect .an# amendment to the said sum after handin! in his tender

;n the e ent that arithmetical error e%ceeds )B of the total sum' the tender shall be ruled out unless the Committee unanimousl# appro es the said for consideration .bearin! on the public interest ;n the e ent of a discrepanc# between the inserted in words and that in fi!ures' then .the Central Tenders Committee shall consider that which is the lowest ARTICLE 25 .Tenders shall not be accepted unless fi%ed total price are shown ARTICLE 26 The tenderers shall return the tender document at the time and date specified and in .the method prescribed in such documents The documents shall be deli ered in the respecti e official en elopes' dul# sealed with sealin! wa%. The name of the sender shall neither be shown nor shall an# mar$ .or reference identif#in! the sender be affi%ed .Torm' dama!ed or mutilated en elopes shall not be accepted ;n the e ent of the official tender en elope bein! dama!ed' misplaced or mutilated' the tenderer shall ha e to secure another replacement en elope in order to submit tender. Otherwise' the tender shall not be entertained unless the Committee unanimousl# decides to accept it on account of considerations bearin! on the public .interest ARTICLE 27 The tender shall ha e to deposit with his tender &attached to the form of TenderA the initial !uarantee in the form of an appro ed cha.ue or a letter of !uarantee from a .local ban$ or an insurance compan# appro ed b# a local ban$ The !uarantee shall remain alid to co er the duration of the tender. Neither cash &!uarantees nor unappro ed che.ues shall be entertained"ART;CLE &3+ =hen the successful tenderer submits the final !uarantee and si!hs the contract' the .initial !uarantee would be refunded to the unsuccessful tenderers ARTICLE 28 =hen the successful tenderer submits the final !uarantee would be refunded to the .unsuccessful tenderers

ARTICLE 29 ;n case where the tender documents specif# submittin! samples of the !oods or products' the tender shall not acceptable unless accompanied b# the re.uired samples or b# a receipt a!ainst deli er# of the samples to the authorit# specified in .the conditions of tender ;n the e ent of &a tendererA suppl#in! local products re.uirin! technical testin! to establish suitabilit#' specimens shall be submitted for testin! and the result shall be forwarded to the Central Tenders Committee in the session scheduled for decidin! .the tender ARTICLE 30 The tender shall remain alid and un retractable from the time of issue until the end of its alidit#. An# reduction in the rates will not be considered after the tender has .been issued ARTICLE 31 The public tender bo% shall be $ept at the main office of the Central Tenders .Committee The si@e of the bo% shall be sufficient to hold the en elopes of all the tenders and its slot openin! shall be wide so as to permit depositin! of en elopes and shall be of the .t#pe that does not permit retrie in! the en elopes throu!h the slot openin!s The bo% in .uestion shall ha e three loc$s and the $e# of the first loc$ shall be $ept b# the chairman of the committee. The Deput# Chairman of the committee shall $eep .the $e# of the second loc$ and the secretar# shall $eep the third $e# of the third loc$ The tender bo% shall not be opened e%cept when the Committee is in session and .when .uorum is present (PART (III CONTRACTING PROCEDURE SECTION 1 PROCEDUR FOR OPENING OF ENVELOPES AND TECHNICAL TESTING ARTICLE 32 The slot openin! of the tender bo% shall be close on the da# and hour specified in the tender documents and shall be sealed with sealin! wa% until the seal is bro$en b# the .Tenders Committee ARTICLE 33

.An# tender recei ed after the time set for closin! the bo% shall not be entertained ARTICLE 34 The tender bo% shall be opened in the meetin! room of the Central Tender Committee when the said Committee is in session. ;f .uorum is not present the bo% shall not be opened and a report shall be drafted about the condition of the bo% to ascertain the soundness of the seals and to a oid depositin! an# further tenders. The meetin! shall be ad2ourned and the members shall recon ene on the nearest .possible date ARTICLE 35 Cpon openin! the tender bo%' he Central Tenders Committee shall open all the .tenders and enter he said in schedule prepared for the purpose ARTICLE 36 Tenders not accompanied b# the initial !uarantee specified in article 3- hereof shall .not entertained ART;CLE 5;n the e ent of an# discrepanc# or inconsistenc# bein! witnessed in the tender' the Central Tenders Committee shall decide acceptance or re2ection accordin! to the .pro isions outlined in part 3 hereof ARTICLE 38 All accepted tenders shall be referred to the competent 9o ernment authorit# so that the technical personal will stud# the said and submit recommendations in connection .therewith to the Central Tenders Committee within the period defined therefore The committee ma#' in cases not re.uirin! technical stud#' award the tender .4orthwith to lowest tenderer ARTICLE 39 The Central Tenders Committee ma# decide referrin! the accepted to a special technical committee formed fro the purpose. Such Committee could independentl# stud# the tenders and"or could stud# such tenders with the 9o ernment authorit# .concerned' as deemed appropriate b# the Central Tenders Committee ARTICLE 40

;f the documents had been prepared b# Consultin! En!ineerin!' such Consultin! En!ineers shall ha e to stud# the tenders and release recommendations in .connection therewith and in collaboration with 9o ernment authorit# concerned ARTICLE 41 The recommendations of the authorities specified in the three precedin! articles shall not be bindin! in so far as the Central Tenders Committee shall decide the .uestion of rewardin! the tenders re!ardless of an# recommendation the committees decision issued for rewardin! the tender contrar# to the recommendations of the technical bod# hereto fore referred to shelled a ma2orit# of 3"5 of the members of which the .committee is comprised SECTION 2 7ROCEDCRE TO 8E 4OLLO=ED ;N DEC;D;N9 ON A TENDER AND S;9N;N9 A CONTRACT ARTICLE 42 The decisions of the Central Tenders Committee shall be issued b# the ma2orit# of .the members resent unless the law specifies otherwise ARTICLE 43 MOD;4;ED 8D T/E LA= NO ,+"-*A The Central Tenders Committee shall awardA &the tender toA the tenderer with the pro re.uisites of the tender documents. Ne ertheless' the Committee could award the tender to a tenderer who submitted a hi!her bid if the sum of the lowest tenderer was unreasonabl# low and does not import reassurance so far as the tenderer concerned. =ith re!ard to tenders for suppl#' the Tenders Committee shall !i e the priorit# when awardin! such tenders to lowest offer who is offerin! local products and complies with document re.uirements' pro ided that the pries should not e%ceed than other lowest offer of similar products .&from aboard b# ,*B &Ten percent The Committee prior to awardin! a tender shall ha e to ascertain the a ailabilit# of .ade.uate financial pro isions to co er the alue of the awarded tender ARTICLE 44 ;f the Central Tenders Committee belie es that a stron! 2ustification e%ists for preferrin! a tenderer who submitted a hi!h price with out the conditions in the

precedin! article bein! met' this matter shall be referred to the Council of Ministers .for a decision in connection therewith The Council of Ministers shall neither bind it self to accept the lowest price not the .technical recommendations without ha in! to produce an# reasons ARTICLE 45 ;f upon chec$in! the tender it is found that unit rates and details do not conform to the total sum' then the total sum shall be considered' unless the error reflects an increase in e%cess of the total of the unit rates in which case the correct total of the unit rates in which case the correct total shall be considered without pre2udice to the .pro isions of Article 36 hereof ARTICLE 46 ;f it is found upon erification that some of the unitEs rates are not reasonable' the Committee or technical personnel seconded b# the Committee shall amend the said to!ether with the successful tenderer prior to awardin! the tender to him and within .the limit of the total fi!ure of the tender ARTICLE 47 Cpon decidin! a tender' T/E Committee shall ha e to consult latest rates pre iousl# applied' locall# or aboard' as well as the prices rulin! on the local mar$et. Also the committee if it deems appropriate to annul the tender due to hi!h rates shall ha e to .establish in its minutes the procedure adopted for determinin! the mar$et prices Annullin! of the tender shall be b# a decision from the Council of Ministers on the .stren!th of a recommendation released b# the Central Tenders Committee ARTICLE 48 The tender shall be relit if onl# one bid is recei ed for some or all the products or wor$ althou!h it mi!ht be in fulfillment of the re.uirements. A tender shall be considered a sole tender if recei ed to!ether with other tenders contrar# to the conditions or not meetin! with the re.uirements which dis.ualif# entertainin!. Ne ertheless' in the e ent of ur!enc#' a sole tender could be accepted b# irtue of a .decision issued with the appro al of 3"5 of the Tenders Committee members ARTICLE 49 ;f onl# one tender is submitted after the tender has been relit' the Committee shall .discuss its rates and suitabilit# and !i e a decision in respect there of ARTICLE 50

;f two or more tenders ha e show e en rats' the Committee could di ide the .uantities ad ertised between the parties who submitted e en rates' pro ided the# are a!reeable to this and pro ided such a procedure is not detrimental to the wor$ .interest. Otherwise lots will be cost ARTICLE 51 The tenders Committee shall notif# the successful tenderer' document all#' re!ardin! the acceptance of his tender and a cop# of such letter shall be forwarded to the .9o ernment authorit# concerned ARTICLE 52 Awardin! the tender and notif# the successful tenderer respecti el# shall not entitle the contractor to an# ri!hts form the State' in the e ent of retractin! the awardin! of the tender b# irtue of a decree of the Council of Ministers and as per the pro isions .hereof The tendered shall not be considerer under contract e%cept from the date on which .si!nature is affi%ed on the contract referred to in the followin! article herein ARTICLE 53 The 9o ernment authorit# lettin! the tender &emplo#erA shall as$ the successful tendered to present himself for si!nin! the contract within the said lapse specified. ;f the contractor fails to present himself within the lapse for concludin! the contract' he .shall then be considered withdrawn ARTICLE 54 The successful tenderer shall be re.uested prior to si!nin! the contract to present the final !uarantee to the 9o ernment authorit# concerned' failin! to present such a !uarantee' he shall be considered withdrawn. The final !uarantee shall remain alid .for the whole duration of e%ecution of the contract .The tenders Committee shall assess the final !uarantee to be pro ided ARTICLE 55 ;f the successful tender fails to present himself for si!nin! the contract within the lapse defined and"or if he fails to pro ide the final !uarantee or withdraws for an# other reason without presentin! a reason acceptable to Central Tenders Committee' he shall then forfeit his initial !uarantee and shall be liable to an# other penalt#

imposed b# the committee' e.!. crossin! his name off the list of appro ed contractors .and suppliers permanentl# or for a certain period The tenderer reser es the ri!ht to appeal the decisions indicated in the precedin! .para!raph to the Council of ministers ARTICLE 56 ;n the e ent of the withdrawal of the successful tenderer' the Central tenders Committee shall consider on the stren!th of the re.uest of the 9o ernment authorit# concerned' the .uestion of annullin! the tender' relatin! and"or awardin! the same .to the second lowest tenderer as per the pro ision hereof (PART IV CONCLUDING PROVISIONS ARTICLE 57 The penalties to be imposed b# the Central Tenders Committee on contractors and 0suppliers shall be as follows .A. Ser in! a warnin! .8. Reducin! the cate!or# C. Remo al from the appro ed list permanentl# or for a certain period these penalties shall not pre2udice the contractual ri!hts of the contracted 9o ernment authorit# as .per the contract conditions ARTICLE 58 The Committee shall issue its decision e%actin! appropriate penalt# &to fit the ContractorEs offenceA after callin! the contractor and hearin! his defense. The .absence of the contractor shall not hinder issuin! decision A contractor a!ainst whom a penalt# had been issued could appeal a!ainst such a .decision to the Council of Ministers as per the pro ision of Article 13 hereof ARTICLE 59 Cntil classification of contractors and re!istration of suppliers ha e been completed in the li!ht of the pro isions of article + and ? hereof' the rulin! classification in state .ministers' each within the scope of its 2urisdiction' shall appl# The Central Tenders Committee shall define the period durin! which the pro isions specified in the precedin! para!raph shall remain alid pro idin! such a period shall .not be in e%cess of si% months form the date of the constitution of such a Committee ARTICLE 60

The Tenders Committee shall ad ertise the tender price on the notice board and its main office where the tender en elopes were opened. All the decisions of the central tenders committee shall be published in the official !a@ette' unless the committee .decides to defer publishin! such decisions ARTICLE 61 The Central tenders Committee shall ha e a secretar# appointed b# a decree from .the Council of Ministers ARTICLE 62 An# part# concerned could appeal to the Central Tenders Committee a!ainst decisions issued b# the latter and the Committee shall con enes to ur!entl# discuss such complain. ;f half of the members present belie e that the complaint has an# !rounds' the matter shall be referred to Council of Ministers for a peremptor# .decision

ARTICLE 63 The Central Tenders Committee shall prepare the !eneral conditions for contractors for wor$s and suppl and shall' at its discretion' commission an# authorit# with a iew .to draftin! these conditions ART;CLE 16 Amendments in e%cess of )B of the total alue of the tender shall not introduce' as .an increase or decrease' e%cept with concurrence of the Central Tenders Committee ARTICLE 65 7urchase of militar# e.uipment for the ministr# of Defense and Securit# forces which are defined b# a decree are e%empted from the pro isions of this law. This e%emption .also applies to contracts of militar# installations in emer!encies ARTICLE 66 The Ministers each b# irtue of the authorit# ested in him are to implement this law which shall be in force from the date publication in official 9a@ette