Legal Updates

The tenders committee is entitled to cancel a win even after the tender has ended

February 22, 2018
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Published in Afik News 252 14.03.2018

A tender publisher decided to disqualify the winning bidder and forfeit the bidder's bank guarantee after the winning.
The Court held that if it turns out that the winning is a result of fraud, deception or concealment of material information by the winner and that the winning was obtained unlawfully, there is justification for disqualification of the winning bid. Even if a contract was executed between the parties, the tender laws still apply to the situation and an administrative authority may also change its decisions and has the full power to instruct the cancellation of the wining.
Here it was a tender with two stages: a framework tender and a bid procedure that is made only during the tender period and only those who won can participate. Because the winner performed prohibited price coordination, a severe conduct that raises suspicion of criminal activity, it is not entitled to continue and try to win the bidding procedures after being caught in the act and the guarantee was justly forfeited.

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