Cabinet Decision No. (52) of 2016 Regarding the Understandings with the Board of Directors of the Contractors Union Concerning the Unified Construction Contract
The Cabinet,
Having regard to the provisions of the Amended Basic Law of 2003 and its amendments, And the provisions of the Public Procurement System No. (5) of 2014 and its amendments, And Cabinet Decision No. (/12/46/06) of 2008, And Cabinet Decision No. (/16/02/12) of 2013, And pursuant to the authorities vested in us, And in the public interest,
The Cabinet, in its session No. (/17/118/10), held on 06/09/2016, decided the following:
Article (1)
Ratification of the understandings reached with the Contractors Union regarding the Unified Construction Contract, dated 01/09/2016, attached hereto.
Article (2)
All competent authorities, each within its area of responsibility, shall implement the provisions of this Decision. It shall take effect from the date of its issuance and shall be published in the Official Gazette.
Issued in the city of Ramallah on: 06/09/2016 AD Corresponding to: 4 Dhul Hijja 1437 AH
Rami Hamdallah Prime Minister
The Unified Construction Contract
- Continued application of the Unified Construction Contract (FIDIC) for construction project contracts by all procuring entities, including local government authorities, until the new standard documents for such contracts are finalized and approved. All construction projects shall remain subject to the terms of the Unified Construction Contract and its amendments, pursuant to Cabinet Decision No. (/12/46/06) of 2008 and Cabinet Decision No. (/16/02/12) of 2013, with respect to the Construction Input Price Index and the mechanism for calculating currency exchange rate differences.
- Reaffirmation of Cabinet Decision No. (/17/109/14) of 2016, regarding the amendment of Paragraph (1) of Article (157) of the original system concerning price review, taking into account that the matter of currency exchange rate differences is not subject to this paragraph.
- Tenders currently under execution and tenders floated prior to the effective date of the Public Procurement Law and System shall remain subject to the terms of the Unified Construction Contract for construction projects and its amendments, pursuant to Cabinet Decision No. (/12/46/06) of 2008 and Cabinet Decision No. (/16/02/12) of 2013, with respect to the Construction Input Price Index and the mechanism for calculating currency exchange rate differences, as was applied prior to the enforcement of the Public Procurement Law and its Executive Regulations.
- The Supreme Council for Public Procurement Policies is tasked with completing the standard document for works contracts, in coordination with the committee appointed by the Cabinet and the Contractors Union, addressing the Contractors Union’s observations and submitting it to the Cabinet for approval before 31/12/2016.
- Consideration shall be given to compensating contractors in cases of significant increases in the Construction Materials Price Index in contracts with an execution period of less than (12 months), during the period until the new standard document is finalized and approved.
- The Board of Directors of the Contractors Union shall issue a decision suspending the cessation of purchasing and submitting tenders.