Governance in Government Contracts

Government entities implement their projects in accordance with the provisions of the Government Tenders and Procurement Law and its executive regulations. This implementation is carried out through several departments, most notably the Technical Department and the Project Management Office. Sometimes, these departments operate independently of the legal provisions due to the technical specialization of their staff, which may lead to outcomes inconsistent with regulatory requirements. Such legal oversights can result in project delays and potentially necessitate judicial or regulatory intervention, God forbid.

To overcome any obstacles in executing government projects, project governance, particularly the role of the project manager within government entities, is essential and cannot be overlooked. Equally important is ensuring that project personnel are familiar with the legal provisions governing government procurement. This knowledge should cover the minimum legal requirements, starting from the initial stage of setting conditions and specifications, then the award phase, followed by managing the contractual relationship with the contractor, including aspects such as modifications, reductions, extensions, penalties, and other related matters, up to the termination of the contractual relationship between the parties.

It is also crucial to clarify the roles and responsibilities of authorized personnel in approving any government procurement procedures according to a clear and defined matrix of authority. Many project issues arise from gaps in defining roles and responsibilities or executing procedures without the input of administrative and financial specialists, including legal advisors. A common misconception among technical department specialists—including the two departments mentioned above—is that the legal team’s role is limited to providing advisory opinions during pre-contractual stages and addressing disputes only when amicable resolution fails. This perception is flawed and adherence to it has led to situations that are difficult to remedy and require judicial intervention, potentially resulting in irrecoverable losses.

In summary: Government project management must be based on a solid legal foundation. Applying this foundation requires comprehensive knowledge of relevant regulations by the involved departments, including the procurement unit and the legal department. There must be clear mechanisms for reconciling differing viewpoints, ensuring that all perspectives and justifications are presented to the authorized decision-makers. The role of the legal department should not be limited to reactive problem-solving but must include preventive oversight throughout all project stages. Activating this preventive role protects efforts, funds, and time, ensures that the entity operates in compliance with the law, prevents shortcomings that could lead to accountability before regulatory or judicial bodies, and ultimately requires comprehensive governance of government procurement to ensure the smooth execution of projects.