Egypt's public contracts law explained: how Law 182 of 2018 shapes government bids

Gulf companies bidding in Egypt often bring Gulf assumptions with them. The rules are different, and several of them favour the bidder once they are understood. Contracts concluded by public entities in Egypt are governed by Law No. 182 of 2018 and its executive regulations, issued by Minister of Finance Decree No. 692 of 2019, both as amended.

Who it covers

The law applies to administrative entities: state budget funded government bodies, state administrative units, local administration units, and service and economic general authorities. There is no minimum contract value, and foreign bidders may take part, subject to any prequalification.

How entities buy

Public tender is the default for purchases, leases, works and services (Article 7). The other methods (public negotiation, limited negotiation, limited tender, two stage tender, local tender and direct agreement) need a justified decision by the competent authority.

Direct agreement (Article 62) is allowed for urgency, single source supply, continuity and uniformity, within authority limits:

• head of the authority: up to EGP 1 million for goods, services and consultancy, or EGP 5 million for works
• minister or governor: up to EGP 10 million, or EGP 20 million for works
• above that: the Cabinet, in cases of strict necessity

The numbers that shape a bid

• Bid guarantee: 1.5% of the estimated value (Article 16).
• Final guarantee: 5% of the contract value, due within 10 working days of the award notice (Article 40). Chambers reports 20 days for foreign winners.
• Delay damages: for supply and service contracts, capped at 3% of contract value where the delay is within 10% of the contract duration, and 5% beyond it. For works, 10% and 15% (Article 48).
• Payment: supplies and services within 30 days of inspection and acceptance; interim payments on works within 60 days of the payment certificate (Article 45).
• Advance payment: possible against an unconditional bank guarantee, deducted from later payments (Article 44).

In practice: delay exposure on Egyptian supply and service contracts is low by Gulf standards. Price the payment period the contract states, and model what happens to your working capital if it slips.

Preferences

• Egyptian products: a supply bid with the required Egyptian industrial content is treated as the lowest price if it is within 15% of the lowest bid without it (Article 35, read with Law No. 5 of 2015).
• Smaller enterprises: local tenders up to EGP 2 million may be limited to micro, small and medium enterprises active in the governorate, with an undertaking in place of the bid guarantee (Article 59).

Complaints

A bidder may file a written complaint with the entity within 7 days of notification, notifying the Public Procurement Complaints Office at the Ministry of Finance at the same time. The Office decides within 15 business days and the entity implements its decision within 7 days. The Office may suspend procedures for up to 14 business days (Cabinet Decree No. 665 of 2021). A complaint is free unless technical experts are needed, and it does not waive the right to go to court.

Termination and the contractor register

A contract terminates automatically for fraud, manipulation, collusion, corruption, monopoly practices, bankruptcy or insolvency. For fraud and collusion, the contractor is also removed from the register of contractors after the opinion of the State Council (Article 50).

What a Gulf bidder should do

1. Price against the Egyptian caps, not your home market's.
2. Check Egyptian industrial content on supply bids. A 15% preference can decide the award.
3. Have the bank line ready before award. The 5% final guarantee falls due within days.
4. Watch the complaint window. Seven days is short; read every notification the day it arrives.
5. For small scopes outside Cairo, a partner active in the governorate may be the only route into local tenders.

If you are preparing a bid in Egypt and want a second view on structure or pricing, send an enquiry.

This article summarises the law as published in English translation and in legal commentary, and is not legal advice. Check the current amended text with qualified counsel.