
Under Oman’s Tender Law, as amended up to Royal Decree 83/2020, participation in public tenders is subject to strict legal requirements intended to ensure openness, equal opportunity, equality, and freedom of competition.
In an exclusive interview with Times of Oman, Dr. Mohammed Ibrahim Al Zadjali, Founding Partner of Mohammed Ibrahim Law Firm, explains that “bids must comply with the conditions, specifications, and instructions contained in the tender documents. Non-compliant bids, including those that are incomplete, unsigned, unstamped, or otherwise failing to meet the prescribed tender conditions and specifications under the law, shall be excluded.”
He stated that “each bid must be accompanied by a temporary bond of not less than one percent of the total bid value.” He further explained that “the validity period of bids is generally 90 days, subject to extension or reduction depending on the nature of the tender, provided that it shall not be less than 60 days.”
“The successful bidder must submit a performance bond amounting to five percent of the contract value within 10 working days from notification of award and within 20 working days in the case of contracts concluded with a contractor abroad, with both periods extendable by up to an additional 10 days. Failure to comply may result in cancellation of the award and forfeiture of the temporary bond, without prejudice to the right of the relevant body to compensation,” he said.
Addressing eligibility requirements, he explained that “workers in bodies subject to the Tender Law, together with their spouses and relatives up to the second degree, may not directly or indirectly submit bids or offers to those bodies, nor contract with them for the purchase of items or the performance of works or services.”
He further noted that “local tenders are limited to entities registered in Oman’s commercial register or approved professional registers, while international companies may participate in international tenders provided that they complete registration within 30 working days from notification of acceptance of their bids.”
He further stated “that bidders must demonstrate sound financial standing, as bankruptcy, insolvency, submission of false information, fraudulent conduct, or breach of previous government contracts may result in exclusion or debarment.”
“The Tender Law establishes a comprehensive framework governing public procurement in Oman, placing clear obligations on both procuring bodies and bidders to ensure transparency, equal opportunity, and free competition at every stage of the process,” he concluded.
(Mohammed Ibrahim Law Firm ([email protected]), (+968 244 87 600) was established on 14th December 2006 and is serving clients through its offices in Muscat and Sohar, as well as operating on a request basis in other areas. It offers legal representation across a wide range of practice areas that include Labour Law, Corporate, Commercial, Contracts, Banking and Finance, International Trade, Foreign Investment, Insurance, Maritime Law, Construction and Engineering Contracts, International Arbitration, Intellectual Property and more).