Legal Updates

Cancellation of tender will be done in exceptional cases only even if the conditions of the tender are not sufficiently explicit

August 7, 2017

The Israel Land Authority issued a tender to lease land for construction. The terms of the tender were unclear, in a manner that raises several ways of interpretation, each of which leading to a different outcome. In addition, among the bidders who participated were two groups that coordinated their offers so as to divide the land plots between them, and thus tried to increase their chances of winning the tender creating an unfair advantage over other bidders.

The Supreme Court held that the tender editor must formulate the terms of the tender clearly and unequivocally, but even if the conditions were not formulated in an optimal manner, only in exceptional cases will the Court cancel the tender.  Bidders may use legitimate tricks as long as it does not jeopardize the principal of equality, fairness and pure standards that are the basis of tender laws.  The Court will go easy on bidders in case of private bidders but not in a business-commercial tender in which the Court will set the border differently.  In this case the Court cancelled some bids of coordinated bidders.