Provisions Related to the Confiscation of the Final Guarantee in Administrative Contracts in accordance with the Competition and Government Procurement Law

Abstract

The penalties imposed by the administrative body play an important role in the contractor’s proper implementation of the administrative contract and the terms, conditions, and specifications contained therein. Among those penalties that the government body can impose is the confiscation of the final guarantee submitted by the contractor after he committed a default, delay, or violation during his implementation of the contract, as The Government Competition and Procurement Law requires the contractor to provide a final guarantee of 5% of the contract value. The research problem lies in clarifying the purpose of confiscating the final guarantee, and explaining the cases in which the government entity must confiscate it as a penalty for the contractor’s failure to implement the contract in accordance with its terms. What are the procedures that the entity must follow if it wants to confiscate it, and does the contractor have the right to request that it not be confiscated due to the government entity’s failure to implement the terms of the contract in accordance with the Competition and Government Procurement Law and the regulations. The research aims to clarify the nature and importance of the final guarantee, as well as the ability of the government agency to extend it or confiscate it, as well as the right of the contractor to restore its value to it. As well as clarifying the procedures that the authority must follow when it requires to confiscate it, so that it is not stabbed by nullity before the judiciary. The research will follow this analytical and applied approach.