Public Contracts: Litigating Against the State

Contracts where a state entity is a party are governed by the Public Tenders and Auctions Law (Law No. 182 of 2018). These "Administrative Contracts" are fundamentally different from civil agreements, as the state retains "Exorbitant Prerogatives" to modify or terminate the contract for the public good.

Disputes in Tender Awards

A frequent point of litigation is the "Unfair Exclusion" of a bidder. Challenges must be directed at the "Pre-award Decision" within the State Council. The focus is on procedural flaws in the technical or financial evaluation phase that violate the principles of equality and transparency mandated by the law.

Contractual Imbalance

If the economic conditions change drastically (e.g., currency devaluation), contractors may be entitled to "Financial Equilibrium" (Al-Tawazon Al-Mali). This is a unique administrative remedy where the court adjusts the contract price to ensure the private contractor does not bear the entire burden of unforeseen external shocks.

Practical Consequences

The state has the power to unilaterally impose fines or confiscate performance bonds. Legal defense must focus on the "Administration's Error" in managing the contract timeline, often shifting the burden back to the state for delays caused by lack of site access or missing technical specifications.