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Hanan Salinger
Muriel Shachar
Since its establishment as an
independent state in 1948, Israel
has made great progress from the
land of "oranges and kibbutz" to a
technologically advanced state with
an economy driven mainly by R&D
(research and development) and high
tech industries. This progress has
been supported by several reforms,
including liberalization of the foreign
exchange markets and the creation of
various incentives to attract foreign
investments. In addition, Israel became
a party to various international treaties
with the major players worldwide
(such as free trade agreements, treaties
for the avoidance of double taxation,
investment treaties and R&D industrial
cooperation treaties). In 2010, Israel
became a member of the Organisation
for Economic Co-operation and
Israeli Tender Laws
A Brief History
When Israel was established as an
independent state in 1948, its legislation
was composed of a mosaic of legal
systems including the Ottoman and
English laws. However, Israel has
gradually developed an advanced
judicial system, especially statutes
enacted by the Knesset (the parliament
of the State of Israel). Today, the Israeli
legislation is a mix of common and civil
law, with extensive ongoing independent
codification especially in the commercial
and corporate fields.
With respect to public tenders and
procurement law, the first rules were
formulated by the courts, based on two
main fundamental principles:
Equality: fair competition and equal
opportunity for all to enter into contracts
with the public sector.
Economic efficiency: safeguarding
the public interest, e.g. ensuring that
the contract is made at the best price/
conditions for the public sector.
The next stage in the development
of tender law, by the late 1980s, was
the legislation of several laws and
regulations for procurement by public
entities, which have mostly confirmed
and developed the principles first
established by the courts.
As a result of the courts' attempts to
set clear boundaries in order to implant
appropriate standards in a young country,
tender laws and regulations have been
enforced throughout the years in an
extremely strict and literal manner. Only
very complex tenders have been allowed
more flexibility. Such a strict approach
has been based mainly on the equality
principle mentioned above. For instance,
no deviation from the tender documents
is allowed, since if all potential bidders
had known that such a deviation would
have been permitted, maybe more
bidders would have participated in
the tender. Moreover, in such event
participating bidders may have proposed
a better price and won the tender. In
addition, deviations may be an easy way
to cover "foul play."
Government Procurement and Tender Laws
an Israeli Perspective
Europe, Middle East & Africa
Hanan Salinger is the founder and the managing partner of Salinger
& Co. He represents both Israeli and foreign clients on a wide range
of issues such as mergers and acquisitions, joint ventures, tenders,
securities matters, licensing, distribution and agency agreements,
breeder's rights, as well as litigation and arbitration.
Muriel Shachar is a partner with Salinger & Co., specializing in
international tenders, infrastructure projects, and international
commercial agreements.
Salinger & Co. Advocates
11 Menachem Begin Street
Ramat Gan (Tel Aviv), Israel 52681
+972 3 612 2030 Phone
+972 3 612 2031 Fax