Glossary
Search a term and see its short definition, legal basis and related decisions. Only lawyer-approved English entries are published.
- GLOSSARYTender Process Disputes20 April 2026
Matters That Must Be Included in the Contract
Contracts drawn up under Law No. 4735 must state: the name, nature, type and quantity of the work, and in services the description of the work; the name and address of the contracting authority; the name or trade name of the contractor and the address for service; information on and the responsibilities of any subcontractors; the price, type and period of the contract; the place and conditions of…
- GLOSSARYTender Process Disputes20 April 2026
The Tenderer's Duty and Responsibility in Concluding the Contract
The tenderer to whom the tender is awarded must, within ten days following the date of notification of the invitation to contract, sign the contract by providing the documents showing that it was not, at the date of the tender, in the situations listed in subparagraphs (a), (b), (c), (d), (e) and (g) of the fourth paragraph of Article 10 of Law No. 4734, providing the performance bond and…
- GLOSSARYTender Process Disputes20 April 2026
Works Not Conforming to the Contract and Its Annexes (Works)
Works not conforming to the contract and its annexes are works that, although carried out by the contractor differently from the project and the specifications, are established by the contracting authority to conform to the rules of the art and the characteristics required and may be accepted in their new condition. Under public procurement contracts the contractor may make no change of its own…
- GLOSSARYTender Process Disputes20 April 2026
Works Not Conforming to the Contract and Its Annexes (Service Procurements)
In service procurements, works proposed by the contractor that differ from the project and the specifications are accepted only where the supervision body approves that they conform to the rules of the art and the characteristics required and possess better characteristics than those existing. The contractor may make no change of its own accord in the projects or the other technical…
- GLOSSARYTender Process Disputes20 April 2026
Works Not Conforming to the Contract and Its Annexes (Goods Procurements)
In goods procurements, where the tender documents so provide, goods or works proposed by the contractor that differ from the technical documentation for the goods may be accepted only where the inspection and acceptance commission approves that they possess the minimum characteristics specified in the tender documents and better characteristics than those existing. In that case the contractor may…
- GLOSSARYTender Process Disputes18 April 2026
Contract and General Costs
Contract and general costs are the cost element added to the tender components at 4% in service procurements based on the employment of personnel. That 4% rate is accepted as a fixed value covering the tender decision stamp at 5.69 per thousand, the contract stamp duty at 9.48 per thousand, the Public Procurement Authority levy at five ten-thousandths, and other general costs. Because contract…
- GLOSSARYTender Process Disputes18 April 2026
Additional Works, Reductions in the Scope of Work and Liquidation Under the Contract
In goods and service procurement and works contracts, where an increase in the scope of work becomes necessary because of unforeseeable situations, the additional work may be carried out by the same contractor, within the framework of the provisions of the contract and the tender documents other than as to time, up to 10% of the contract price in works tendered on a lump sum turnkey basis and up…
- GLOSSARYTender Process Disputes18 April 2026
Mobilisation (Partial or General Mobilisation)
Mobilisation is the state in which all activities relating to the preparation, assembly, organisation and use of all the forces and resources of the State, primarily military force, so as to meet the requirements of war, are applied, and in which rights and freedoms are limited in whole or in part by law. General mobilisation is mobilisation applied throughout the country in order to meet a…
- GLOSSARYFinancial Disputes18 April 2026
Calculation of the Price Difference Under a Revised Work Programme
The price difference under a revised work programme is calculated in situations such as an extension of time, an increase or reduction in the scope of work, a change in appropriation instalments, work carried out with the authority's permission during a period technically unsuitable for work, or the establishment of a new price. It is calculated for the work items in the revised work programme…
- GLOSSARYTender Process Disputes18 April 2026
Revised Work Programme (Service Procurements)
In service procurements, a revised work programme is drawn up where there is an extension of time for the work, or where at any time the supervision body takes the view that the actual progress of the works does not comply with the approved programme. Within ten days the contractor prepares a revised programme with a view to ensuring that the works are completed within the period envisaged, and…
- GLOSSARYTender Process Disputes18 April 2026
Prohibition on Advertising
Where it considers it necessary, the contracting authority may include a prohibition on advertising in the tender documents. Under such a provision, the contractor may not use or publish the authority's name in a brochure or any promotional medium in connection with the goods it supplies, unless permitted in writing by the authority.
- GLOSSARYTender Process Disputes18 April 2026
Delivery of the Projects to the Contractor
In works tendered on the basis of a preliminary and/or final project, the implementation project is as a rule prepared or commissioned by the contracting authority, provided it is not contrary to those projects, and is delivered to the contractor with a letter at least fifteen days before the manufacture to be carried out under the work programme begins. Where there is a delay in delivering the…
- GLOSSARYTender Process Disputes18 April 2026
Preparation of Projects
In works, the projects are among the most important documents in the tender documents. The project must therefore define the detail of the work subject to the tender as fully as possible. Accordingly, in works tendered on the basis of a preliminary and/or final project, the implementation project is as a rule prepared or commissioned by the contracting authority, provided it is not contrary to…
- GLOSSARYTender Process Disputes18 April 2026
Project (Public Procurement Contracts)
In works tenders, a project is the document annexed to the contract containing the plans, measurements and other details prepared in connection with the construction. Law No. 4734 defines three types of project: the preliminary project, the final project and the implementation project. The preliminary project is prepared in accordance with the definitive requirements programme for a given…
- GLOSSARYTender Process Disputes18 April 2026
Preliminary Examination Record (Works)
In works, the preliminary examination record is the record drawn up as a result of the preliminary examination, showing the circumstances preventing acceptance, the period required to remedy them and the subsequent steps of the acceptance process. In practice this record, prepared by the construction supervision officers, must clearly state the total period required for the defective works to be…
- GLOSSARYTender Process Disputes18 April 2026
Preliminary Examination Process (Works)
In works, the preliminary examination process is the initial assessment of whether the work is acceptable, before the acceptance commission is formed. It is carried out by the construction supervision officers, and it is established in that process whether there are circumstances preventing acceptance.
- GLOSSARYTender Process Disputes18 April 2026
Preliminary Examination Process (Service Procurements)
In service procurements, the preliminary examination process is the technical conformity examination carried out upon the contractor's application for acceptance, before the inspection and acceptance commission stage. It is carried out by the supervision body and determines whether the work is in an acceptable condition. Where the work is found suitable, an acceptance proposal certificate is…
- GLOSSARYContract Disputes18 April 2026
Termination of the Contract on Grounds of Force Majeure (Goods Procurements)
For a contract to be terminated on grounds of force majeure, the event must not arise from any fault attributable to the contractor, must be of a nature that prevents performance of the undertaking, must be beyond the contractor's power to remove, must be notified by the contractor to the contracting authority in writing within twenty days following the date on which it occurred, and must be…
- GLOSSARYTender Process Disputes18 April 2026
Additional Damage
In public procurement contracts, additional damage is the further loss arising from default that is not covered by default interest or a delay penalty. In periods of high inflation and exchange rates, because the statutory interest rate paid by the contracting authority falls short of the loss in the value of money, compensation may be claimed from the authority where a progress payment is paid…
- GLOSSARYTender Process Disputes18 April 2026
Method to Be Followed in Inspection (Goods Procurements)
The method to be followed in the inspection of goods procurements is first to check the physical characteristics. The commission examines whether all the physical characteristics conform to the provisions specified in the tender documents. Even if some of the characteristics are found not to conform in the physical inspection, the inspection is not broken off but completed. Where the physical…