Legal Updates

Unforeseen circumstances may enable changing of agreement terms even after completion of tender ‎process

December 18, 2016
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A petition was filed to cancel a tender due to significant changes made in the agreement terms of the winner of the tender procedure, after the tender process was completed and thus the concept of equality between tender participant was jeopardized.

The Court dismissed the petition and held that the principal of equality between tender participants must be kept but one may make changes to the agreement with the winner if required due to unforeseen circumstances caused by third parties and discovered after end of the tender process.  In that certain tender material changes were indeed made by those were due to unforeseen circumstances that happened several months after the execution of the agreement with the tender winner and were required in order to adjust the terms of the agreement to the current circumstances.  The change of the engagement terms was made in a manner maintaining the essence of the agreement, for a limited period of time and in a manner preserving the public interests and thus is was the most appropriate alternative under the circumstances, especially when compared to the extreme alternative of cancelling the tender and reissuing the tender.

 

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