Project Management in the Oil and Gas Industry

6.9.1 Public (Open) Tender
The owner should prepare the service terms and conditions booklet and 
lists of works and accessories. Care must be taken into account in those 
documents and a copy of the contract and its specifications and financial, 
administrative, tax, insurance, and succession requirements must be kept. 
Translated brochures list the requirements and specifications and, in the 
case of external tenders, they indicate that Arab, French, Chinese, and 
other text is applicable in any disagreement or confusion in the content.
Open bidding should be advertised in newspapers and advertising 
should start in a timely manner. The advertisements should show the 

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Tendering, Bidding, and Contract Traps 201
declaration submitted to tenders, the last date for submission, the work 
required, the value of the primary and final bond, the price of a copy of the 
tender conditions, and any other data the administration deems necessary 
for the work, whether external tenders must be advertised in the owner 
country and abroad also.
There must be at least thirty days for submission of bids in public tenders 
from the date of the first announcement of the auction. Licensed, competent 
authority may choose to shorten the period, but not less than fifteen days 
if necessary. Such failure does not apply to public tenders related to annual 
supplies, except in cases of extreme necessity dictated by the circumstances 
of the subject of the tender with the consent of the competent supreme 
authority, with the duration of validity of tenders from the date fixed for the 
opening of the envelopes to be decided in the auction and notification of 
acceptance before the expiry of the validity of the application of these ten-
ders. If not that, the administrative body may request, in a timely manner, 
that bidders accept the validity of the extension as long as necessary.
Before the meeting of the opening the tenders envelopes, an employee 
should be assigned to receive bids that were received by the responsible 
department and to set out the relevant department for delivery for an 
immediate tender envelope which is coming in the morning directly to the 
open tender committee.
The chairman of the committee, on the day fixed for opening, the dead-
line for submission of tenders, is tasked with the following:
• Prove the case reported by the bidding after verifying the 
integrity of the seals.
• Establish the number of envelopes in minutes of meeting.
• Open the bids sequentially and for any open envelope the 
Chairman of the Commission puts on the envelope a serial 
number.
• Number the component of the tender and prove the number 
of such securities.
• Read the name of the bidder and the phrase to the audience 
of bidders or their representatives.
• Demonstrate the values of the tender and the value of insur-
ance and avoid numbering.
The initial bond is not less than one percent of the tender value in the 
construction work. The successful bidder is to deposit in a period not 
exceeding ten days from the date of the next day by official letter with 
acknowledgment of receipt to accept the tender that will increase the bond 
equal to five percent of the value of construction work.

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Project Management in the Oil and Gas Industry
For international contractors outside the country, the bond should 
submit for a time period not more than twenty days. The concerning 
authority can extend the deadline for the filing of the final deposit not 
exceeding ten days.
This type of tender is usually determined by the government to enhance 
the flow of money inside the country, to develop new contractors, 032 and 
to enhance performance and support them financially.