|
In Qatar, the Government is the main end-user of a wide range
of products and services. All government procurement contracts
are subject to the provisions of bidding and tender regulations
included in Law No. (8) of 1979. The Central Tenders
Committee (CTC) of the Ministry of Finance is responsible
for processing the majority of public sector tenders. The
CTC applies standard tendering procedures and adheres to established
performance norms. It also sets the standards for rules and
regulations for bidding procedures. Information on CTC tenders
may be obtained from the CTC office in Doha or on the internet
at www.ctc.gov.qa.
In tenders valued in excess of QR 100 million (USD 27 million),
the CTC may invite and pre-qualify international firms to
bid for a specific product or service. Technical bids submitted
to the CTC are referred to the appropriate government end-user
for short-listing. The CTC then opens the commercial bids
and recommends the lowest priced technically qualified bidder
to the entity concerned, who will make the final award decision.
Enquiries about specific award decisions should be directed
to the CTC.
Some governmental entities have internal tender committees.
The Ministry of Energy and Industry and Qatar Petroleum process
all tenders independently. Qatar Armed Forces and the Ministry
of Interior are responsible for issuing tenders for classified
materials and services. The Ministry of Municipal Affairs
and Agriculture may tender consultant contracts valued at
less than QR 3 million (USD 822,000) and works
contracts valued at less than QR 1 million (US$ 274,000).
Bid and performance bonds are required in the form of unconditional
guarantees with a local bank. The standard bid bond is 5%
and performance bond 10% of the contract. However, the above
rate can be larger for certain projects. Foreign firms are
not normally required to have a local agent for the bid process.
However, by the time a contract is ready to be signed, participating
foreign firms may need to have satisfied local agent requirements.
The State Purchase Office (SPO), a division of the CTC, handles
all local purchase orders (LPO's) for equipment and supplies
required by various government ministries. The SPO handles
bids worth hundreds of millions of dollars every year. The
period for preparation of quotations is usually 30 days,
but very often less than three weeks after the announcement
of tenders.
Government contracts normally include arbitration clauses.
Unless stated otherwise in the contract, the standard clauses
stipulate that disputes emanating from government contracts
will be subject to arbitration in Qatar. German firms may
consider seeking, whenever possible, to reserve the right
to appeal local arbitration decisions abroad. Foreign and
local contractors are usually paid 20% of the contract awarded
to them against unconditional bank guarantees. Further payments
are made according to a standard payment schedule based on
the progress of the project. It should be noted that the payment
schedule almost always authorizes the Government to retain
portions of payments due until after the completion and acceptance
of the project. Foreign and local contractors may experience
delayed payments, which do not accrue interest, usually due
to bureaucratic red tape. Arabic is the official language
in Qatar though English is widely used. Bids should be in
Arabic unless the tender document specifically indicates that
English is required or accepted. Specifications generally
conform with British/European standards.
|