Legal Updates

A tender bidder may not attack the tender terms after submitting its bid

May 19, 2021

A company submitted a bid for a complex and wide-ranging tender concerning, inter alia, the planning and construction of the light rail lines in the Tel Aviv metropolitan area and after about eight months from the date of submission of the bid and when it became clear that it did not win the tender, it contended that a clarification notice regulating the participation of other tenderers was unreasonable and therefore the winning bids should be disqualified.

The Court dismissed the petition. A tender bidder may not attack the tender terms retroactively and after many months because contentions contentions as to the tender must be raised as early as possible and without delay, especially when the tender bidder is silent while submitting its bid and by doing so agrees to the provisions of the tender. Here, the tender publisher has issued a clarification notice outlining how bidder who are facing a merger will be able to submit their bids. However, after the results of the tender were received, about eight months after the clarification notice was published and four months from the date of submission of the bids, the bidder raised various reservations regarding the outline of the tender. Attacking the outline was done very late and was contrary to the bidder's statement that it agrees to all conditions of the tender without reservation and therefore the petition was denied.