Ali Zuweid's Political Programme · Proposed legislation · Economy, Finance, Investment and Employment
Public Procurement and Government Contracts Law
A federal draft law moving core procurement rules from a framework based on a 2004 order and executive instructions to a modern Iraqi parliamentary law, preserving existing institutions, establishing the national electronic platform in law, and opening the entire contracting cycle to transparency, data and oversight from planning to closure.
Executive Summary
In February 2026, Iraq entered a new stage in public contracting following entry into force of Public Contracts Implementation Instructions No. (1) of 2025, published in Iraqi Gazette Issue (4849) on 17 November 2025. The new instructions repealed the 2014 instructions for new contracts while retaining them for contracts concluded under them, expanded use of the unified electronic platform, and modernised advertisement, award, objections and contracting procedures.
The primary legislative basis nevertheless remained incomplete: the 2025 instructions themselves were issued under paragraph (1) of section (14) of dissolved Coalition Provisional Authority Order No. (87) of 2004. The need is therefore not for another set of instructions, but an Iraqi parliamentary law replacing the old order and giving core rules a permanent legislative foundation, while retaining the 2025 instructions briefly until new regulations are issued.
The draft preserves what has been achieved. It retains the Ministry of Planning's General Government Contracts Department as the central policy and standards body and establishes in law the unified electronic platform already serving as the official tool for notices, tenders and procurement. It elevates scope, competition, exceptions, conflicts of interest, award, pre-signature standstill, objections, debarment, open data, change management and oversight to statutory rules.
The draft changes the success criterion from a narrow focus on price to “best value for money”. For standard goods, the lowest responsive price may be appropriate; for complex equipment, facilities or systems, operating and maintenance costs, quality and risks may outweigh the purchase price difference. To prevent uncontrolled discretion, criteria and weights must be disclosed before competition.
The draft treats the post-award phase as seriously as tendering: major contracts require management plans and controls for change orders, substantial modifications, suspension, extension, performance, subcontractors, acceptance and termination, with publication of substantial changes, payments and implementation status. Oversight of what happens after signature thus becomes central to procurement.
Legal Position through 2026
Public Contracts Implementation Instructions No. (1) of 2025 were published in the Iraqi Gazette on 17 November 2025 and provided for entry into force after ninety days. They therefore became the principal executive framework for new contracts in 2026, while the 2014 instructions continued for contracts concluded under them. The official text expressly bases the 2025 instructions on Coalition Provisional Authority Order No. (87) of 2004.
The new instructions cover entities, contract types, procurement methods, advertisement, competition documents, bidder provisions, opening, evaluation, award, contracts, objections, extensions, suspension, securities and lists. They also integrate the electronic platform into advertisement, notification and contract archiving.
In July and August 2026, the Ministry of Planning issued circulars on purchasing through the unified electronic platform and held workshops for ministries, governorates and bodies not attached to a ministry to standardise implementation. This Law therefore proposes no replacement platform, but expands the existing platform into a complete digital cycle.
Legislative Gap
| Issue | Current position | What the Law Adds |
|---|---|---|
| Primary Legal Basis | Modern instructions based on Order No. 87 of 2004. | An Iraqi parliamentary law replacing the old order. |
| Platform | Already an official tool with expanding functions. | Statutory foundation for a digital cycle, unified identifier and interoperability. |
| Data | Publication of notices, awards and archives. | Publication of the contract cycle, changes and implementation in an analysable format. |
| Objections | Committees within contracting entities and specified deadlines. | Functional independence, standstill and preserved judicial recourse. |
| Value for Money | Technical and financial criteria in instructions and documents. | A legislative rule preventing selection solely by lowest price when that is uneconomic. |
| Contract Management | Multiple executive provisions. | Statutory rules for substantial modifications, management plans and performance disclosure. |
Proposed legislative policy
The draft uses a “framework law + regulations and instructions + standard documents” model. The Law establishes principles, rights and limits that should not change by administrative circular; regulations set thresholds, periods and details; and standard documents translate these rules into practical forms for each contract type.
The draft does not make the Ministry of Planning the awarding body for every contract. The Ministry handles policy, standards, the platform, data, capacity and the national register. Purchasing decisions remain with the entity needing the goods, works or services and responsible for the result.
Open competition remains the norm, while allowing requests for quotations for simple purchases, requests for proposals for consulting services, framework agreements for recurring needs, competitive dialogue for complex projects, electronic auctions for standard goods, and narrowly defined direct procurement.
Draft Public Procurement and Government Contracts Law
Chapter One — General Provisions
Article 1 — Title
This Law shall be called the “Public Procurement and Government Contracts Law”.
Article 2 — Objectives
This Law aims to protect public funds and achieve best value for money; strengthen competition, transparency, integrity and equal opportunity; unify core procurement rules; digitalise contracting; improve planning, implementation and contract management; and provide effective objection and review mechanisms.
Article 3 — Scope of Application
This Law shall apply to procurement of goods, works, consulting and non-consulting services by state institutions, independent commissions, bodies not attached to a ministry, governorates, local units and public enterprises when using public funds or implementing projects included in the budget or investment programme, and any other entity legally subject to public contracting rules.
Article 4 — Exceptions
Detailed procedures shall not apply to contracts wholly financed by a foreign state or international organisation where an effective agreement requires its own procurement rules, while observing integrity and transparency as far as possible. Classified defence and security procurement shall follow a special regulation; a body's security status alone shall not exempt unclassified purchases. Public-private partnerships and concessions shall follow their specific law, applying this Law's general competition principles unless that law provides otherwise.
Article 5 — Definitions
The following terms mean: “Ministry”: Ministry of Planning; “central department”: General Government Contracts Department or its legal successor; “contracting entity”: any entity covered by this Law; “public procurement”: the process from identifying needs and planning through competition, award, signature, contract management, payment and closure; “platform”: the unified national electronic platform for government notices, tenders and procurement or its successor; “value for money”: the best combination of quality, cost, risk and performance over the life cycle; “beneficial owner”: the natural person ultimately owning or controlling a legal person under existing legislation.
Article 6 — General Principles
Public procurement shall observe open competition wherever possible, equality, non-discrimination, requirements proportionate to contract size and risk, transparency, lawful confidentiality, integrity, accountability, separation of conflicting powers, advance planning, value for money, and written reasoned decisions open to review.
Article 7 — Prohibition on Splitting to Evade Rules
Dividing a single need, homogeneous purchases or a project into multiple contracts to fall below procedural or financial thresholds or avoid competition, approvals or publication is prohibited. Division into independent lots to broaden competition or enable small businesses is not prohibited splitting where its economic and technical purpose is documented.
Chapter Two — Institutional Governance
Article 8 — Central Procurement Policy Body
The Ministry of Planning's General Government Contracts Department shall be the central procurement policy body, preparing policies, regulations, instructions, standard documents and guides; managing or supervising the platform; collecting and analysing data; developing professional capacity; and following procurement plans and national registers. It shall not replace contracting entities in award and implementation decisions.
Article 9 — Contracting Units
Each contracting entity shall establish or retain a specialist procurement and contracts unit with appropriate legal, financial and technical staff. Instructions shall set minimum structures and delegation levels according to procurement volume and risk.
Article 10 — Separation of Duties
Procedures shall prevent specification preparation, evaluation, approval, contract management and payment from being concentrated in one person or unit without controls. Exceptions caused by small organisational size or necessity shall be documented and subject to stronger subsequent auditing.
Article 11 — Committees
Opening, evaluation and review committees shall comprise members with expertise appropriate to the contract. Each member shall declare absence of conflicts before viewing bids. Anyone who prepared a biased specification or has a direct interest shall not evaluate bids.
Article 12 — Approval
Regulations shall specify higher-level approval requirements according to contract value and risk. Approval shall not be a full reevaluation of bids, but a review of authority, funding, procedure, criteria and reasons.
Article 13 — Procurement Professionalism
The Ministry shall adopt a national professional framework for procurement and contract roles, including competence levels, training and continuing development, reflecting legal, financial, engineering, project management and risk expertise according to contract type.
Article 14 — Individual and Institutional Responsibility
Committee membership or approval shall not exempt an official from responsibility for acts within their mandate. Responsibility shall not attach to a person who recorded a written objection to a violation and took the action required by law.
Chapter Three — Planning and Preparation
Article 15 — Annual Procurement Plan
Each entity shall prepare an annual procurement plan linked to the budget or investment plan and publish the approved version on the platform, specifying the purchase, estimated value, method, and expected advertisement and implementation dates. Material changes and their reasons shall be recorded in updates.
Article 16 — Needs Assessment
Procurement shall not begin without a specified government need funded or expected to be funded under the law. Available alternatives shall be considered and required outcomes or outputs defined where more appropriate than prescribing a particular technical solution.
Article 17 — Project Readiness
Works and investment tenders shall not be advertised before minimum studies, designs and technical requirements are complete and the site, land rights, critical permits, funding plan and realistic timetable identified, except for design-and-build or methods expressly transferring some obligations to the contractor.
Article 18 — Cost Estimate
The entity shall prepare an estimate based on current market prices, quantities and reasonable risks and document its method. The estimate shall not bind bid prices or alone justify rejecting a bid whose price is shown reasonable through market analysis.
Article 19 — Market Analysis
Public market consultations may precede procurement to gather technical and commercial information, without granting unlawful advantage to participants. Material information affecting competition shall appear in the tender documents.
Article 20 — Specifications
Specifications shall be functional or performance-based wherever possible, clear, neutral and not tailored to a supplier. Where the need cannot be described without naming a brand, origin or technology, “or equivalent” shall be added and equivalence criteria specified.
Article 21 — Life-cycle Cost
For goods, equipment and facilities with significant operating or maintenance costs, life-cycle cost may be used instead of purchase price alone, covering acquisition, operation, energy, maintenance, spare parts and final disposal.
Article 22 — Lots
A tender may be divided into independent lots to increase competition, enable small and medium enterprises or reduce implementation risk. Rules for combining lots and capacity limits shall be disclosed in advance.
Chapter Four — Electronic Platform and Data
Article 23 — National Platform
The unified electronic platform shall be the official channel for publication, notification and procurement procedures specified by regulations. Its timestamps and electronic records shall be recognised under electronic transaction and signature laws.
Article 24 — Electronic Submission
Bids, enquiries, clarifications, guarantees and notices shall be submitted electronically wherever technically available. The Ministry shall establish a transitional timetable for a digital procurement cycle from planning to contract closure.
Article 25 — Unified Identifier
Each procurement shall receive a unique electronic identifier accompanying it through planning, advertisement, award, contract, amendments, payments and closure. A new identifier shall not conceal a modification's or change order's connection to the original contract.
Article 26 — Published Data
The platform shall publish at least the procurement plan, notice, competition documents, clarifications, amendments, award decision, winner, contract value, implementation period, contract or publishable summary, substantial modifications, change orders, implementation status, acceptance and termination. Only legally protected data or information whose publication legitimately harms security, competition or trade secrets shall be withheld.
Article 27 — Machine-readable Data
The Ministry shall adopt an open, structured, machine-readable contracting data model, which may align with the Open Contracting Data Standard or an equivalent international standard to enable automated analysis and public scrutiny.
Article 28 — Interoperability
The platform shall progressively connect with budget, payment, tax, company registration, social security, guarantee, commercial register, beneficial ownership and related systems, avoiding repeated requests for government documents verifiable electronically.
Article 29 — Continuity and Security
The Ministry shall ensure platform continuity, backups, cybersecurity and access logs. A verified general outage shall extend affected deadlines in a manner preserving equality among competitors.
Chapter Five — Procurement Methods
Article 30 — Open Tender
Open tendering shall be the default for goods, works and non-consulting services where the need can be defined and publicly competed. Departure shall occur only in legally authorised cases with a documented justification.
Article 31 — Restricted Tender
Restricted tendering may be used where objective reasons limit technically capable suppliers or prequalification is needed for a highly complex or risky contract. Enough suppliers shall be invited for genuine competition where the market permits.
Article 32 — Two-stage Tendering or Competitive Dialogue
Two-stage tendering or competitive dialogue may be used for complex contracts where the entity cannot determine the optimum technical or financial solution beforehand. Competitors' solutions shall remain confidential, and ideas shall not be transferred between competitors without consent.
Article 33 — Consulting Services
Consulting services shall be selected on quality and cost, or quality alone where the assignment warrants it, using published criteria for methodology, experience, team and cost. Price alone shall not determine selection for complex intellectual assignments.
Article 34 — Requests for Quotations
Requests for quotations may be used for simple, recurring, low-value purchases with a competitive market. Regulations shall set thresholds, minimum procedures, required quotation numbers and arrangements where they cannot be obtained.
Article 35 — Direct Procurement
Single-source direct procurement may be used only where genuine competition is impossible because of a proven exclusive right or technical compatibility unobtainable through a reasonable alternative; for limited supplementary purchases; to the necessary extent during an emergency; or in other cases specified by law. The justification and outcome shall be published after any confidentiality reason ends.
Article 36 — Electronic Reverse Auction
Electronic reverse auctions may be used for standard goods and services with precisely definable specifications where price or measurable cost is a major evaluation element, subject to participant qualification, equality and system integrity.
Article 37 — Framework Agreements
Open or closed framework agreements may be concluded for a specified period for recurring needs, defining admission, subsequent competition, ceilings and estimated values, without guaranteeing nonexistent purchase volumes.
Article 38 — Central Purchasing
The Council of Ministers may identify common goods or services for a central purchasing body to procure for several entities where analysis shows savings without harming competition or unjustifiably excluding qualified local enterprises.
Article 39 — Single Bid
Receiving one bid shall not automatically cancel procurement. Award may proceed where advertising was adequate, conditions did not unjustifiably restrict competition, the bid is responsive, and price or cost is market-reasonable. The decision shall be reasoned and receive higher approval specified by regulation.
Article 40 — Emergency Procurement
Disasters, crises or critical service interruptions may justify shortened procedures proportionate to necessity and limited to the required duration and scope. Every purchase shall be documented; the contract and exception justification shall be published shortly after contracting and independently reviewed afterwards.
Chapter Six — Advertisement and Competition Documents
Article 41 — Advertisement
Tender notices shall appear on the platform and additional channels specified by regulation according to value and competition scope. They shall provide sufficient information on the entity, subject, lots, funding, eligibility, enquiry deadlines, closing and opening.
Article 42 — Time Limits
Bid periods shall reflect complexity and information requirements and meet regulatory minima. They may be shortened for simple or emergency procurement with published justification and shall be extended for material document changes.
Article 43 — Standard Documents
Entities shall use Ministry standard documents by contract type unless the central department approves a necessary change. Documents shall distinguish qualification and evaluation criteria, technical and commercial conditions, and the draft contract.
Article 44 — Enquiries and Clarifications
All competitors shall have equal opportunities to seek clarification. Material answers shall be published without identifying the questioner. Oral directions changing a condition or criterion shall have no effect.
Article 45 — Document Amendments
Competition documents shall be amended by an official platform-published addendum, allowing sufficient time for bidders to respond. Where it substantially changes the need or selection criteria, the process shall restart or be extended to preserve competition.
Article 46 — No Disproportionate Exclusion Conditions
Requirements for experience, turnover, capital or staffing shall not disproportionately exceed contract needs. Prior government experience shall not be required where comparable private-sector experience demonstrates capability.
Chapter Seven — Eligibility, Qualification and Conflicts of Interest
Article 47 — Eligibility
A person shall be eligible if lawfully established, compliant with tax, social security and professional licensing requirements relevant to the contract, not debarred or subject to a prohibited conflict, and possessing the required capability under the competition documents.
Article 48 — Beneficial Ownership
Companies bidding above the regulatory threshold shall disclose beneficial owners under relevant legislation. Deliberate concealment or false information shall justify rejection, termination or debarment proceedings according to seriousness.
Article 49 — Competitor Conflicts of Interest
A competitor shall be excluded where control, interests or prior involvement in preparing the competition confer an advantage that cannot be addressed by a less restrictive measure, or where it submits conflicting bids for the same lot without permission in the documents.
Article 50 — Employee Conflicts of Interest
An employee or committee member shall not participate where they, their spouse or relatives within integrity-law limits have a financial interest, recent employment relationship or employment negotiations with a competitor. Recusal shall be recorded.
Article 51 — Prequalification
Prequalification may be used for large, complex or high-risk contracts, with criteria tied to technical, financial and managerial capacity, safety and past performance. It shall not artificially limit numbers where more candidates meet the conditions.
Article 52 — Past Performance
Documented performance in public and private contracts may inform qualification and evaluation where measurement methods are published, objective and open to complaint. Impressions or secret internal lists shall not be used.
Chapter Eight — Bid Submission and Opening
Article 53 — Bid Confidentiality
The platform and contracting entity shall protect bid contents until opening. Prior opening or viewing is prohibited except for technical checks of file integrity that do not reveal contents.
Article 54 — Bid Security
Bid security may be required where withdrawal or default risks are material, at a proportionate amount that does not unnecessarily obstruct competition. Electronic guarantees from accredited institutions may be accepted and automatically verified.
Article 55 — Opening
Bids shall open at the specified time publicly or through a documented electronic process. Opening minutes shall record bidders, total prices and required disclosures and be published on the platform without trade secrets.
Article 56 — Late Bids
A bid received after closing shall be rejected unless delay resulted exclusively from a platform failure before the deadline and system logs show uploading began on time. Instructions shall specify non-discriminatory proof procedures.
Article 57 — Bid Validity
Bid validity shall be reasonable. If procedures cannot finish in time, an equal voluntary extension may be requested from competitors. Price or conditions shall not change in exchange for extension unless documents already provide an objective mechanism.
Chapter Nine — Evaluation and Award
Article 58 — Compliance with Criteria
Evaluation shall use only the criteria, weights and method in the competition documents. No criterion or weight may change after closing, nor information unavailable to other competitors be used where it affects ranking.
Article 59 — Best Value for Money
Award need not go to the lowest price. Measurable elements may include price, quality, life-cycle cost, implementation time, performance, reliability, sustainability, risk and after-sales service, with calculation methods disclosed.
Article 60 — Formal Irregularities
Arithmetic errors may be corrected or clarifications requested without changing bid substance or allowing post-closing renegotiation of price or technical solutions. A bid shall not be excluded for an immaterial formal defect that confers no advantage and does not impair fair comparison.
Article 61 — Abnormally Low Bids
Where a price raises reasonable doubts about performance capability, the entity shall request explanations concerning efficiency, methodology, prices, support or compliance. Rejection shall not rest merely on a price below estimate, but on written analysis establishing non-performance risk or illegality.
Article 62 — Negotiation
Post-opening negotiation in open tenders is prohibited except under methods and circumstances permitted by law, regulations and competition documents, without giving one competitor an opportunity unavailable to others.
Article 63 — Award Decision
The award decision shall be reasoned, naming the winner, bid value, reasons for selection under the criteria, and a summary of why other bids were not selected. Platform publication shall begin the objection period.
Article 64 — Standstill Period
The contract shall not be signed until seven working days after award publication, except for emergency or low-value procurement, a process having only one competitor from the outset, or another justified regulatory exception. A timely objection shall suspend signature until determined.
Chapter Ten — Objections and Review
Article 65 — Objections Committee
Each entity shall establish an objections committee functionally independent of specification, opening, evaluation and award approval committees. It shall be chaired by a senior legal or administrative official and include legal, financial and technical expertise.
Article 66 — Right to Object
A bidder or potential competitor with a direct interest may object to a document condition before closing or an award decision afterwards, alleging illegality or breach of competition, equality or published criteria.
Article 67 — Deadlines
Document objections shall allow time for correction before closing. Award objections shall be submitted within seven working days of platform publication. No financial security shall be required merely to exercise the right to object.
Article 68 — Suspension of Signature
A timely award objection shall suspend contract signature unless the entity's head issues a published, reasoned decision to proceed for an urgent public interest that cannot tolerate delay. The decision shall be judicially reviewable.
Article 69 — Determination
The committee shall issue a reasoned decision within ten working days of a complete file. Within the entity's powers, it may uphold or annul the procedure, order reevaluation, correct competition documents or require retendering.
Article 70 — Competent Courts
Administrative objection shall not prevent judicial recourse under existing laws. This Law creates no parallel administrative court; jurisdiction remains with competent courts.
Chapter Eleven — Integrity, Competition and Debarment
Article 71 — Prohibited Conduct
Competitors and contractors shall not offer bribes or unlawful benefits, collude to divide markets or fix prices, improperly influence officials, falsify documents or data, conceal material conflicts, or obstruct audits or investigations.
Article 72 — Referral to Competent Bodies
Where serious indicators of corruption, fraud, collusion, money laundering or another offence arise, the entity shall preserve evidence and refer it to the Federal Commission of Integrity, Public Prosecution, competition authority or other competent body. Contractual measures shall not replace criminal or administrative investigation.
Article 73 — Collusion Indicators
The Ministry shall use analytical tools to detect identical bids, shared awards, unusual bid rotation, similar prices, coordinated withdrawals and other patterns. Indicators alone shall not prove guilt, but shall justify review and investigation.
Article 74 — Debarment
A person may be excluded for a specified period upon proof of corruption, fraud, serious forgery, collusion, material repeated contractual default or false eligibility information. The decision shall follow notice and a hearing of the defence, be reasoned and proportionate, and be open to objection and appeal.
Article 75 — National Register
The central department shall maintain a national electronic register of debarred, suspended and defaulting persons, showing the basis, duration and scope of decisions without prohibited disclosures.
Article 76 — Remedial Measures
Serious measures to change management or compliance systems, repay funds, cooperate with investigations and prevent recurrence may inform the debarment period, without prejudice to state rights or criminal liability.
Article 77 — Gifts and Benefits
Procurement personnel and committee members shall not accept gifts, hospitality or benefits from competitors or contractors in violation of integrity and disciplinary laws. Conduct rules shall define modest protocol hospitality and its disclosure.
Chapter Twelve — Market Access and Public Policy
Article 78 — Small and Medium Enterprises
Entities shall reduce unnecessary entry barriers for small and medium enterprises through lots, simplified documents, proportionate capital and experience requirements, and timely payments, without waiving quality or integrity standards.
Article 79 — National Preference
Price or technical preference may be granted to national products or Iraqi companies under a law or general transparent regulation consistent with Iraq's international obligations. The percentage and method shall be disclosed beforehand and shall not justify buying non-compliant products.
Article 80 — Local Content
Training, employment or local content requirements may be imposed where they provide measurable economic benefit, provided they are proportionate, clear, disclosed and verifiable, and not designed to exclude competition for a particular person's benefit.
Article 81 — Sustainable Procurement
Energy efficiency, water use, service life, repairability, waste management, safety and social impact criteria may inform specifications or evaluation where contract-related, measurable and not unjustifiably costly.
Chapter Thirteen — Contracts, Guarantees and Payments
Article 82 — Contract Signature
The contract shall be signed after standstill, resolution of objections, final security and legal and financial approvals. It shall be in Arabic; with a foreign party, it may also use another language, identifying the prevailing text in case of divergence.
Article 83 — Contract Contents
As appropriate, the contract shall cover scope, outputs, duration, amount, payment, currency, taxes, guarantees, quality, inspection, acceptance, delay, changes, force majeure, insurance, liability, intellectual property, confidentiality, applicable law, dispute resolution and termination.
Article 84 — Performance Security
Performance security shall be proportionate to value and risk. It may be reduced for low-risk contracts or replaced by a suitable instrument and shall not be retained after its purpose ends.
Article 85 — Payments
Contracts shall set clear deadlines for payment statements, invoices, approval and disbursement. Due amounts shall not be delayed without a legal reason or documented dispute. Scheduling and compensation effects shall follow the contract and existing laws.
Article 86 — Advances
An advance may be paid where justified by contract nature, protected by equivalent security and governed by a clear recovery plan. It shall not provide open-ended contractor financing beyond implementation needs.
Article 87 — Price Adjustment
Long-term contracts or those exposed to material fluctuations shall contain clear price adjustment or fixing mechanisms appropriate to their nature. Formulae, indices and limits shall be set beforehand; market fluctuations shall not be addressed through inconsistent negotiated decisions after award.
Chapter Fourteen — Contract Management and Changes
Article 88 — Contract Management Plan
For medium and large contracts, the entity shall prepare a management plan covering responsibilities, performance indicators, risks, schedule, payments, changes, claims, reporting, acceptance and closure, and appoint a suitably authorised and competent contract manager.
Article 89 — Change Orders
A change order shall address a need connected to the original contract and have written technical, financial and legal grounds, identifying effects on cost, duration and risk. It shall not award new scope that should have been separately competed.
Article 90 — Substantial Modification
A modification is substantial if it changes the contract's general nature or, had it appeared in the original documents, would have allowed other competitors or materially changed the award result. It shall require new procurement unless a specified exception applies.
Article 91 — Unforeseen Circumstances
A contract may be amended for objective circumstances a professional entity could not reasonably foresee when tendering, provided that its nature remains unchanged and regulatory thresholds for higher review and renewed competition are respected.
Article 92 — Extension and Suspension
Contract duration may be extended or suspended only for a documented contractual reason, such as an approved change, entity-caused delay, force majeure or legally permitted circumstance. The decision shall specify days, financial effects and each party's responsibility.
Article 93 — Subcontracting
Subcontracting may occur within disclosed limits and conditions without releasing the main contractor from responsibility. Disclosure of principal subcontractors and their beneficial owners may be required for high-value or high-risk contracts.
Article 94 — Assignment and Change of Control
Assignment or a change of contractor control affecting eligibility shall require entity approval and verification that award conditions remain satisfied. Approval shall not replace the contractor with an uncompetitively selected winner.
Article 95 — Performance and Reporting
For contracts specified by regulation, the entity shall periodically publish completion percentages, payments, changes, delays and material claims, protecting secrets and security information.
Chapter Fifteen — Acceptance, Termination and Disputes
Article 96 — Acceptance
Provisional and final acceptance or service approval shall follow contractual tests and criteria, with a record of completed works, deficiencies and warranties. Final payment alone shall not imply acceptance of a latent defect.
Article 97 — Termination for Breach
A contract may be terminated or work withdrawn for material breach after notice and an opportunity to remedy where possible. The contract shall specify termination effects, state safeguards, completion arrangements and settlement of amounts due.
Article 98 — Public-interest Termination
A contract may be terminated in the public interest where law and contract permit, by reasoned decision, compensating completed work and legitimate costs directly caused by termination, excluding unearned profits unless law or contract provides otherwise.
Article 99 — Force Majeure
The contract shall govern force majeure and exceptional circumstances and their effects on time, cost and termination. The affected party shall notify and take reasonable mitigation measures.
Article 100 — Amicable Settlement
Before litigation or arbitration, parties shall seek amicable settlement within a defined period. Negotiation, an independent expert or a dispute board may be used for major construction contracts.
Article 101 — Courts and Arbitration
Government contracts shall ordinarily follow Iraqi law and Iraqi court jurisdiction. Domestic or international arbitration may be agreed where legally permitted and after required approvals, considering contract nature, financing, the foreign party and state interests.
Chapter Sixteen — Oversight and Analysis
Article 102 — Procurement Record
The entity shall retain a complete electronic procurement file including decisions, approvals, correspondence, committee minutes, bids, evaluation, contract, amendments, payments and acceptance for statutory periods and at least five years after closure unless longer retention is required.
Article 103 — Risk-based Audit
Prior and subsequent oversight shall focus on higher-value, higher-risk or exceptional transactions instead of repeating formal checks on every transaction. Oversight bodies shall establish methods for sharing findings and avoiding duplicate data requests.
Article 104 — Warning Indicators
The Ministry shall develop indicators such as few bids, repeated direct awards, unusually similar prices, contract splitting, extensive changes, implementation delays and concentration of awards with one supplier. They shall guide review, not automatically establish guilt.
Article 105 — National Report
The Ministry shall publish an annual procurement report covering value, procedure numbers, direct and open procurement proportions, average procurement times, objections and outcomes, amendment volume, platform performance and small business participation.
Article 106 — Oversight Bodies
This Law shall not prejudice the mandates of the Federal Board of Supreme Audit, Federal Commission of Integrity, Public Prosecution or other oversight and judicial bodies. They shall access platform data and records within legal limits.
Chapter Seventeen — Special and Transitional Provisions
Article 107 — Defence and Security Procurement
Unclassified defence and security procurement shall follow general rules. Contracts whose information would threaten national security shall follow a special regulation governing restricted competition, oversight, auditing and exception records, without exemption from conflict-of-interest rules or prohibitions on bribery and collusion.
Article 108 — Internationally Financed Contracts
Where a procedure conflicts with a binding procurement condition in an effective loan, grant agreement or treaty, that international condition shall apply to the relevant financing under the Constitution. The exception reason shall be recorded on the platform or public register to the extent consistent with the agreement.
Article 109 — Self-financed Public Enterprises
Public enterprises' purchases from their own resources shall follow core transparency, competition, integrity and platform rules within regulatory limits. Commercial procedures requiring speed may be simplified, provided they do not bypass public fund oversight.
Article 110 — Repeal of the Public Contracts Order
Dissolved Coalition Provisional Authority Order No. (87) of 2004 on public contracts, as amended by Law No. (18) of 2013, shall be repealed upon this Law's entry into force, and this Law shall replace its legislative rules.
Article 111 — Temporary Continuation of the 2025 Instructions
Public Contracts Implementation Instructions No. (1) of 2025 and rules issued under them shall remain effective insofar as consistent for no more than eighteen months after entry into force or until replacement regulations and instructions are issued, whichever is earlier.
Article 112 — Existing Contracts
Contracts concluded before entry into force shall remain governed by their original rules and conditions for validity and acquired rights. This Law's procedural provisions shall apply to new amendments wherever possible without disturbing a final legal position.
Article 113 — Implementing Regulations
On a Ministry of Planning proposal coordinated with the Ministry of Finance and competent bodies, the Council of Ministers shall issue regulations within one hundred and eighty days covering financial thresholds, procurement methods, qualification, evaluation, securities, objections, debarment, emergency procurement, contract management and the platform.
Article 114 — Standard Documents
The Ministry of Planning shall update standard documents within twelve months, issuing uniform forms for works, supplies, consulting and non-consulting services, framework agreements and electronic procurement.
Article 115 — Electronic Transition
Within two years, all notices, documents, clarifications, award decisions and contract archives shall use the platform. Within three years, electronic submission, evaluation, management and payment functions or connections shall be complete, allowing phased rollout according to entities' readiness.
Article 116 — Unification of Lists
Blacklist, defaulting company and suspension records shall migrate to one national register after review of each decision's legal basis and duration and provision of an objection route. Indefinite debarment shall not continue merely because it was transferred from an earlier register.
Article 117 — Periodic Review
Three years after entry into force, the Ministry of Planning shall submit an assessment to the Council of Representatives on competition, time, costs, digital participation, objections, changes and direct contracts, proposing necessary legislative amendments.
Article 118 — Entry into Force
This Law shall enter into force ninety days after publication in the Official Gazette.
Statement of reasons
This Law is enacted to complete Iraq's public procurement and government contracts framework through modern parliamentary legislation replacing Order No. (87) of 2004; consolidate the transition begun by Public Contracts Implementation Instructions No. (1) of 2025 and the unified electronic platform; achieve best value for public money; broaden competition, transparency and integrity; and regulate planning, electronic procurement, award, objections, debarment, contract and change management, and oversight.
Explanatory memorandum
Why a New Law after the 2025 Instructions?
The new instructions are an important modernisation, but themselves rely on an order issued in 2004 before the current Constitution. Moving core rules into a law enacted by the Council of Representatives gives the system a more stable foundation while leaving flexible details to regulations and instructions.
Why Retain the Ministry of Planning?
Iraq already has a specialist department, standard documents, lists, a help desk, training programmes and an electronic platform. A new authority would divide responsibility. The Law therefore consolidates the existing department's role and adds data, analytics and digital governance duties.
Why “Best Value” Rather than Always “Lowest Price”?
For simple standard goods, lowest price may be correct. For a facility, device or system, operating, maintenance and failure costs may outweigh the purchase difference. The Law allows these factors to be assessed if disclosed before competition.
Why a Standstill before Signature?
An objection is ineffective if the contract is signed immediately after award publication. The 2025 instructions link publication to the objection period and prohibit signature until determination. The draft elevates this safeguard into law.
Why No New Contracts Court?
A special administrative contracts court previously existed but was abolished by Law No. (18) of 2013. The draft therefore does not recreate parallel judicial structures; it strengthens administrative objections while preserving competent court jurisdiction.
Why Publish Implementation?
A tender may be sound while value, duration and scope change after signature. Transparency therefore covers the contract, amendments, change orders, payments, progress and termination.
Digital Procurement and Data
Iraq began gradually launching the unified electronic notices and tenders platform in 2024. In 2025 and 2026 it became an official hub for tender publication, document sales, contract archiving and purchase requests. The next stage is an interconnected procurement system linking the contract identifier to budget, bidder, winner, guarantee, amendment, payment and acceptance data.
The Law proposes structured machine-readable publication compatible with the Open Contracting Data Standard. The requirement is interoperability, analytics and continuity, rather than a particular technology or software company.
Integrity and Competition
| Risks | Response |
|---|---|
| Tailored Specifications | Functional specifications or “equivalent” provisions and prohibition of disproportionate requirements. |
| Committee Conflicts of Interest | Mandatory declaration, recusal and documentation of the replacement. |
| Front Company | Beneficial ownership disclosure above a regulatory contract threshold. |
| Bid Collusion | Pattern analysis and referral to competent bodies. |
| Repeated Direct Procurement | Defined circumstances, written justification and subsequent publication. |
| Post-signature Modification | A substantial modification test and renewed competition where the transaction's nature changes. |
Contract Management and Changes
Significant fiscal risks often emerge after signature: delayed site access, design changes, successive change orders, suspensions, extensions and claims. The draft therefore requires management plans for medium and large contracts and a designated monitoring officer, while preserving separation of technical approval, payment and oversight.
The draft adopts a qualitative test of substantial modification. If a change would alter the transaction's nature, attract other competitors or change the competition result had it been known initially, new procurement is the norm. Truly unforeseen circumstances require justification, limits and higher approval.
Legislative and Institutional Alignment
| Framework | Proposed status |
|---|---|
| Coalition Provisional Authority Order No. (87) of 2004, as Amended | Repeal and replacement with a new Iraqi law. |
| Public Contracts Implementation Instructions No. (1) of 2025 | Transitional continuation for up to 18 months where consistent, followed by replacement. |
| Unified Electronic Platform | Continued and expanded functions under a statutory basis. |
| General Government Contracts Department | Continues as the policy, standards and data body. |
| Federal Financial Management Law | Integration; no procurement without valid appropriation and financial authority. |
| Integrity, Competition and Company Laws | Integration on corruption, collusion and beneficial ownership. |
Financial and Implementation Implications
The draft requires no new federal procurement authority. Most infrastructure already exists in the Ministry of Planning, contracting entities and electronic platform. Additional costs concern platform development, system integration, cybersecurity, training, data publication, analytical tools and updated standard documents.
The draft does not give a falsely precise aggregate cost because some digital and training expenditure already exists. Implementing regulations shall require a funding-gap statement distinguishing ongoing investment from additional costs caused by the Law.
Potential gains arise from greater competition, less time, paperwork and duplication, prevention of unplanned procurement, detection of abnormal amendments, and better contract management. They shall be measured after implementation rather than assuming a savings percentage beforehand.
Transition and Implementation
The Law does not disrupt existing contracts. Contracts under the 2014 or 2025 instructions retain their original rules concerning formation validity and acquired rights. New rules govern future procedures and new amendments insofar as they do not undermine settled contractual positions.
The 2025 instructions continue temporarily until replacement regulations are issued because they contain operational details that need not all enter the Law. The eighteen-month limit prevents transition from becoming permanent.
International Standards Relevant to Iraq
The UNCITRAL Model Law on Public Procurement of 2011 offers a suitable modernisation structure: value for money, objectivity, fairness, competition, transparency, electronic procurement, framework agreements and suppliers' right to challenge.
The OECD Recommendation extends the focus from tendering to the full procurement cycle: transparency, integrity, access, efficiency, electronic procurement, capacity, evaluation, risk management and accountability. Its 2025 report also stresses integrated digital solutions, secure systems and data-based risk management.
The Open Contracting Data Standard links planning, tendering, award, contract and implementation in one record. Iraq can adopt a compatible model rather than a closed data format that is difficult to analyse.
Sources and references
- Ministry of Justice — Iraqi Official Gazette, Issue 4849, 17/11/2025Official source for publication of Public Contracts Implementation Instructions No. (1) of 2025.
- Iraqi Gazette — Text of Public Contracts Implementation Instructions No. (1) of 2025Official text based on Coalition Provisional Authority Order No. 87 of 2004, regulating advertisement, award, objections and contracts and repealing the 2014 instructions for new contracts.
- Ministry of Planning — General Government Contracts DepartmentOfficial source for instructions, rules, standard documents, lists and training.
- Ministry of Planning — Functions of the General Government Contracts DepartmentExplains the department's policy, standard document, advisory and monitoring roles.
- Ministry of Planning — Circulars and Rules for 2026Documents implementation of the 2025 instructions and activation of the unified electronic platform in 2026.
- Ministry of Planning — Adoption of the Unified Electronic PlatformOfficial confirmation that ITP is approved for publication of government tenders and procurement.
- Ministry of Planning — Launch of the Unified Electronic PlatformExplains notice, document sale, contract archive, purchase request and electronic procurement services.
- Ministry of Planning — Platform Implementation Workshop, 23/8/2026Recent documentation of standardised platform implementation under the 2025 instructions.
- Supreme Judicial Council — Disputes Arising from Administrative ContractsJudicial reference for abolition of the special administrative contracts court under Law No. 18 of 2013 and transfer of jurisdiction to the judiciary.
- UNCITRAL — Model Law on Public Procurement (2011)International reference for competition, transparency, electronic procurement, framework agreements, remedies and value for money.
- OECD — Recommendation of the Council on Public ProcurementIncludes transparency, integrity, access, efficiency, electronic procurement, risk management and accountability principles.
- OECD — Digital Transformation of Public Procurement (2025)Recent reference for digital integration throughout procurement and use of data.
- World Bank — Procurement Framework, 2025Recent reference for value for money, integrity and risk management.
- Open Contracting Partnership — Open Contracting Data StandardReference for open, analysable publication of planning, tender, award, contract and implementation data.
Proposed legislation within Ali Zuweid's Political Programme · Prepared by Ali Zuweid