A tender holder paid the winners a consideration reduced by more than ILS 100 million from the price offered by the winners due to the war in Ukraine, which financially harmed the winners.
The Court held that the reduction of the consideration is legitimate considering the circumstances, and that there was no breach of equality. Generally, the making of a substantial change in the terms of a contract deriving following a tender is forbidden. However, there may be exceptional circumstances under which it may be possible to make such a change, when the legitimacy of the change is examined against the background of the time that has passed since the tender until the stage where the change of circumstances occurs, the reason for making the change, the duration of the contract with the winner, etc. Here, this is a large-scale tender, where the change was due to a change in circumstances in the form of the Ukraine war which affected the global economy and which could not have been predicted in advance. Further, this change was discovered only a few months after the execution of the engagement agreement. Therefore, the change in the terms of the contract resulting from the tender did not harm the principle of equality between the bidders.