Legal Updates

As long as a winner of a tender did not fulfil all tender conditions the agreement with it does not materialize and the tender process does not end

March 18, 2018

An entrepreneurial company won a tender to lease land for construction in the area of ​​the Be'er Sheva municipality. When it encountered difficulties with the municipality, it turned to the District Court, claiming that it was a lawsuit on the interpretation of a contract and not in tenders’ law.

The Court dismissed the claim on the outset and held that as long as the contract between the authority and the winner of the tender has not materialized, the tender process has not yet been completed and any question of interpretation is within the jurisdiction of the Administrative Court and not the District Court. The acceptance of the bid in the tender is fully perfected only with fulfillment of all the conditions defined in the tender documents, and because the winner has not yet met the terms defined in the tender and has not paid the required payments the contract has not materialized, and we are still within the tender process.