Palestinian Contractors Union Issues a Set of Decisions to Regulate the Work of Member Contracting Companies

SadaNews - The Palestinian Contractors Union has issued a set of decisions to regulate the work of member contracting companies in light of the "unjust" practices that have begun to be imposed on these companies in many contracts. The union stated in a statement today, "In light of the exceptional circumstances faced by the contracting sector and the severe imbalance in contractual equilibrium, and in view of the unjust practices that have begun to be imposed on contracting companies in many contracts, particularly: the refusal of some purchasing entities to fix the exchange rate, the non-compliance with the indexation mechanism and linking prices to reflect the economic reality and inflation, the unjustified delay in approving and disbursing financial claims, and the obstinacy in refusing to resort to arbitration as a fair alternative means to resolve disputes contrary to the standards." It added that due to the serious damages resulting from these practices that threaten the continuity of contracting companies, affect the rights of their workers, and violate the principles of justice and financial and contractual balance, the Palestinian Contractors Union, based on its legal and professional responsibilities, and its absolute commitment to protecting the interests of its members, has decided the following: Firstly: All contracting companies affiliated with the union are strictly prohibited from signing or participating in or submitting any tender, regardless of the contracting party, whether the tender is self-funded or through the Ministry of Finance or any other funding entity, if the tender does not include fair contractual conditions, particularly: - A clear fix of the exchange rate. - Adoption of a fair and binding indexation mechanism. - Commitment to disbursing financial claims according to the contract. - Inclusion of the right to resort to arbitration and activation of the Dispute Resolution Council in the contract. Secondly: The union confirms that selling below the real cost constitutes a clear violation of the ethics and principles of the profession, and directly harms the profession and the sector as a whole, and no leniency will be shown towards any such practices. Thirdly: Affiliated contracting companies are obliged to inform the union in writing and immediately of any unjust or unbalanced contractual conditions found in tender or contract documents. Fourthly: The union announces that any tender whose conditions violate financial or contractual balance will be collectively boycotted by contracting companies, and this decision will not be lifted until those conditions are amended in a way that preserves the rights of both contracting parties. Fifthly: The union reserves its full right to take all legal and professional actions against any purchasing entity or any company that violates this circular, in a manner that serves the protection and sustainability of the sector. It confirmed that this decision comes in defense of the dignity of the profession, protection of the national economy, and safeguarding the rights of contractors, and is binding on all contracting companies affiliated with the union.