Participating in a tender process can be a strategic and profitable step for businesses, but it requires strict compliance with the tender's guidelines and rules and compliance with the requirements of Israeli law. Whether you're a supplier, contractor, or service provider, understanding what is and isn't allowed to be done in the process can help you avoid costly mistakes and increase your chances of success. We have compiled for you a number of important guidelines that you should follow or avoid when you participate in a tender process in Israel.
- Read the tender documents and the engagement agreement thoroughly
The most important step in any tender process is understanding the tender documents. In Israel, public tenders are subject to the Tenders Duty Law, which requires transparency, competitiveness and protection of the principle of equality. It is important to read and understand the terms, specifications and requirements carefully, in order to ensure that your offer complies with the requirements of the bidding entity. Pay attention to the fine details, including submission deadlines, eligibility requirements, and technical requirements. No less important, an engagement agreement is usually attached to a tender, and while the agreement is not subject to negotiation, it is important that a lawyer with expertise in the field review the agreement in order to understand its terms and ensure that the engagement is economic and that there are no problematic issues – all in order to ensure that there will be no winning of the tender and an engagement that cannot be met or that is not economic. Sometimes it is possible to carry out a process of clarification questions in which it is even possible to change the terms of the tender and the terms of the agreement.
- Submit accurate and complete documents
In Israel, failure to submit complete and accurate tender documents may lead to immediate rejection of the bid, especially when it comes to material documents relating to compliance with the prerequisites (such as: attaching a guarantee in the exact required wording or with an error in the name of the bidder). Make sure that all the required documents, such as corporate registration, financial statements and certificates relevant to the tender, are submitted correctly and completely, and it is highly recommended that a lawyer with expertise in the field review the documents before submitting them. If the tender requires specific technical capabilities, it is important to include the documents that show these capabilities. In many cases, the tenders committee has the discretion to allow the completion of technical documents that were inadvertently omitted, but it is not advisable to rely on this discretion.
- Make sure to meet the submission deadline
One of the most common reasons for rejecting bids is late submission, with submission deadlines strictly enforced in order to prevent jeopardizing the principle of equality between bidders. Therefore, ensure that you prepare the tender booklet well in advance, in order to take into account unexpected delays (such as: technical malfunctions in the case of submitting a tender digitally and in the case of physical submission, delays due to traffic jams or another unexpected event). Sometimes, the risk of cancelling a tender due to non-compliance with deadlines exists even after the notice of winning.
- Submitting Clarification Requests
If some of the tender documents are unclear, it is important to request clarifications or additional information during the process, as the assistance of lawyers with experience in the field may sometimes even lead to changes in the terms of the tender. It is important for the attorneys to examine the mechanism for raising a request for clarification, because sometimes there are precise dates for this, and because the clarification process is in the right hands, sometimes allowing for a change in the actual terms of the tender and the engagement agreement. After the submission of the proposal, it will not be possible to attack the provisions of the tender, and therefore it is worthwhile to take advantage of the opportunity and advantages available at this stage.
- Participation in Bidder Meetings
In certain tenders, there is an obligation to participate in a bidders' meeting as a condition for submitting the bid in the tender, and sometimes the deadline for submitting requests for clarification is limited only to or until the framework of the meeting. In such a case, it is important not only to participate in the tender but also to examine whether it is possible to reach the tender with the guidance of a lawyer or a professional with expertise in the field.
- Prohibition of Coordinating Bids between Bidders
Coordination between bidders is a serious offense under Israeli law. It is forbidden to make arrangements or coordination with other bidders in order to influence the outcome of the tender, whether it is coordination aimed at winning one bidder or dividing the market between the bidders so that each one wins part of the tender. Such actions are considered prohibited ploys that jeopardize equality and may even constitute a restrictive arrangement that amounts to a criminal cartel. Beyond the disqualification of the bid and the risk of forfeiture of a guarantee submitted in the tender, this improper conduct may lead to severe penalties, including criminal charges.
- Ensure the veracity of the detailed information
Providing false or misleading information in an offer or affidavit in an attempt to obtain something fraudulently is a serious offense under Israeli law. Not only will this lead to the disqualification of the bid (and perhaps even the forfeiture of the tender guarantee), but it may also lead to the taking of additional legal actions. Transparency is an integral part of the tender process, and even after winning the bid may face criticism from both the other bidders and the court, so it is important to ensure that all the details in the bid are correct and accurate.
- Ensure compliance with all applicable laws in the framework of the execution of the tender
Submitting a bid in a tender also requires that the consummation of the tender meet the legal requirements in Israel, including the protection of workers' rights (payment of minimum wage, absence of convictions in the field of work, etc.), environmental standards and specific requirements for each field. Failure to comply with these requirements may lead to the disqualification of the proposal, taking into account the provisions of the tender. It is important to make sure that a lawyer who specializes in the field makes sure that the execution of the tender proposed in the proposal meets all the relevant legal requirements.
By adhering to the rules of "what to do and what not to do", businesses can navigate the complexity of the tender process in Israel with relative ease. Avoiding errors and mistakes when submitting the tender is an important step on the way to achieving the goal and the success of the tender process. In order to ensure full compliance with the Tenders Law and other regulations that apply to you, it is recommended to consult with an attorney who is familiar with tender law in order to ensure that the required actions are carried out in real time, even before the tender is submitted and without any delay.