Law Updates

The Tender Board Issues New Government Projects Regulation

The Tender Board published in today’s issue of the Official Gazette a brand new Regulation Governing Government Projects that formally adopts the quality gate approach for managing projects carried out by entities subject to the provisions of the Tender Law.

Under the quality gate approach adopted by the Tender Board, a government entity subject to the provisions of the Tender Law will be required to follow a seven phase process when procuring and implementing any project (initiation, development, planning, design, definition, implementation, and closure) and update the Tender Board on the progress of these phases on a regular basis through the online platform of the Tender Board.

The new regulation does not appear to introduce any new direct substantive obligations for companies wishing to contract with the government, but provides a very prescriptive guideline for the approvals, reports, and processes that government entities are required to fulfil before moving to the next procurement phase. The majority of these requirements appear to be the standard existing requirements for completing any government project. However, there are some new elements such as the requirement for each project to have a designated general supervisor who is distinct from the designated project manager.

The regulation also has a short chapter on variation orders that does not impose any new restrictions on the ability to issue variation orders, but requires any government entity wishing to issue a variation order to complete a form for requesting variation orders and to deliver a powerpoint presentation on the justifications for the variation order, in addition to the standard Ministry of Finance and Ministry of Economy approvals.

The regulation mentions a Government Project Management Manual that is intended to be read alongside the regulation for government entities to have a complete picture of the appropriate method for managing government projects.

This new regulation enters into force tomorrow. You can read it in English in full on the link below: