Instruction No. 1 of 2025 on Implementation of Government Contracts: Key Provisions for Bidders

1. Key takeaways

Instruction No. 1 (2025) on Implementation of Government Contracts was published in the Official Gazette No. 4849 on 2025-11-17, issued by the Ministry of Planning under Section 14 of Coalition Provisional Authority Order No. 87 (2004), and enters into force 90 days after publication, on 2026-02-15 (Article 42). The harshest provisions: Article 8 — publication of the award letter on the unified electronic announcement and tender platform is deemed notice to all bidders, the objection period starting the day after publication; and Article 27 — the initial deposit is 1%–3% of the estimated cost and the final deposit a performance guarantee of 5% of the contract amount. GRZAN accordingly shifts tender management to watching the platform.

• Award letters published on the unified platform are deemed notice to all bidders; objection runs from the next day.
• Initial deposit 1%–3% of estimated cost, decreasing as the estimate rises; final deposit 5% performance guarantee.
• Contracts under Instruction No. 2 (2014) keep that instruction; the dividing line is the conclusion date.

2. Legal basis

The instruments below carry the instruction and related instruments.

Evidence note. Gazette No. 4849 is a PDF photocopy with an abnormal text layer (reversed RTL order); machine extraction is unreliable; provisions came from page-by-page layout reading with cross-checking; Arabic quotations should be proofread before citation.

Extracts, condensed. Article 1: state companies executing budget-funded projects are contracting entities — binding KIMADIA. Article 8(a): announcements on the unified platform and in two national newspapers; document price and platform fees non-refundable; at least 2 identical bid copies. Article 8(t): the award letter published on the platform is deemed notice to all bidders; objection runs from the day after publication. Article 10: bidders submit incorporation certificate, articles, internal rules, power of attorney, contractors classification identity, plus a no-objection letter or valid tax identity from the Federal Tax Authority. Article 13: the 30-day bid validity or extension; paragraph 3(a) sets the (20%) threshold against the estimated cost, (b) a price-negotiation proposal (Cabinet Decision 592, article 40). Article 23: suspension beyond 90 days (works and supply), 30 days (non-consultancy), 60 days (consultancy) triggers follow-up measures. Article 27(1): initial deposits of 1%–3% of the estimated cost, decreasing as the estimate rises; only guarantees, certified cheques, drafts or cash deposits (capped at 50,000,000 dinars); government bodies and four methods exempt. Article 27(2): final deposits as a 5% performance guarantee, released only after final acceptance and settlement. Article 37: standard tender documents; the unified platform; Iraqi law and courts; annual plans; the federal budget law; cabinet exceptions in extreme necessity channel of Decision 592); a 30% value-addition preference for domestic products, clause number unconfirmed.

3. Expert insights

Platform publication of the award letter is deemed notice, making platform watching a statutory duty. Failure to check does not suspend the objection period starting the day after publication. GRZAN monitors the platform daily.

Two tracks run in parallel; look at the contract conclusion date, not the tender publication date (Article 41). Around 2026-02-15 old contracts follow the 2014 instruction, new contracts the 2025 instruction, divided by the conclusion date.

The deposit account runs in two segments. The initial deposit of 1%–3% of the estimated cost sits at the bid stage, decreasing as the estimate rises; the 5% performance guarantee sits at the contract stage, released only after final acceptance and settlement. Peak combined occupation belongs in the funding plan with the article 38 extension rule.

China uses percentage caps where Iraq uses a range. China caps the bid deposit at 2% of the estimate and the performance deposit at 10% of the contract; Iraq instead uses a 1%–3% range — caps prevent over-guarantee, the range lets contracting entities size deposits by project.

Circulated figures do not all survive the gazette text. The announcement period of 10–60 days, the penalty range of 10%–25%, the 45-day branch registration and the 30-day signature period trace to Articles 8, 28 and 17, but their conditions differ: the announcement period expressly excludes devices; the penalty range is fixed case by case; the 45-day figure applies only to foreign companies required to open branches. The seven-working-day objection period remains unverified — practical estimate / pending verification.

Late-payment penalties: a statutory range of 10%–25%, and the same percentage is the cumulative cap. The article number was read inconsistently as Article 28 or 29 — identical content, off by one. The range is fixed case by case; the base is the contract amount; the cumulative cap equals the same percentage; daily accrual is contract amount over duration, times the contract-fixed percentage within 10%–25%, times days of delay — fixing a number is a misreading. Accepted-compliant performance may be reduced by progress. (Gazette pages 42–43.)

Article 8 announcement period of 10–60 days excludes medicines and medical supplies. The original does not specify calendar or working days; no presumption is made. Five categories are excluded: ration cards, medicines and medical supplies, armaments, security-nature items and petroleum products; at minimum device tenders are not bound by the 10–60 day period, and exclusion from the whole article is not conclusively asserted. (Gazette pages 16 and 18.)

Articles 17 and 10. The general signing period after award is 30 days; 45 days applies only to foreign companies required to open a branch in Iraq. Article 10: an accredited external inspection body may be designated, and import contracts are priced by arrival point under CIP, CFR, CIF or FOB.

4. Practical recommendations

• Set platform monitoring at tender launch: daily checks by a designated person, publication-day screenshots archived, objection period counted from the day after publication. No objection-period figure was verified, so no number is given.
• Prepare bids under Article 8 with at least 2 identical copies, marking each envelope; charge document price and platform fees as non-refundable bid costs.
• Schedule deposits in two segments: initial deposit before the bid deadline; 5% performance guarantee after the award letter, before signature. Practical estimate: opening a guarantee usually takes 2–4 weeks (no official provision found).
• For transition-period projects, confirm the contract conclusion date first and keep evidence in the contract file.
• Design the supply chain contingency plan around the 90-day suspension threshold of Article 23, avoiding interruptions that trigger follow-up measures and the blacklist procedure.
• Complete the no-objection letter or valid tax identity under Article 10 before the bid deadline; responsible parties: the Iraqi-side entity and tax agent. Practical estimate: processing time follows the authority’s acceptance (no official time limit found).
• The penalty article carries two readings (28 or 29): confirm on the gazette pages before citation; mark the objection period as practical estimate / pending verification, or confirm with the Ministry of Planning first.

5. Verification checklist

• □ Download the official PDF and check the Arabic originals of Articles 8, 13, 23, 27, 36, 41 and 42.
• □ Check the gazette issue (No. 4849), publication date (2025-11-17) and the Article 42 effective date.
• □ Search the platform for the award-letter publication date, archive the screenshot and start the objection period.
• □ Re-check the Article 27 range of 1%–3%, the decreasing rule, the 50,000,000 dinar cash cap and the four exemptions.
• □ Search for the Ministry of Planning control regulations to verify the announcement period and penalty percentages.
• □ Obtain the original of Instruction No. 2 (2014) and compare the transition-period differences.
• □ Search for the original of the Blacklist System No. 1 (2015) and confirm the Article 36 citation relationship.
• □ Re-check whether the official documents cited here have been replaced by later instructions or decisions (verification baseline date: 29 October 2026).

Regulatory information verified as of 29 October 2026.

How GRZAN can help. GRZAN provides medical device and IVD registration, quality system, authorised representative and local testing support for the Iraqi market. Our team coordinates local importer arrangements, and supports post-market vigilance obligations. Business enquiries: info@grzanglobal.com