Kuwait cracks down on contractors: Nine companies face bans for failing public tender standards

Kuwait’s Central Agency for Public Tenders (CAPT) has banned nine companies from participating in future government tenders due to violations ranging from negligence to failure in meeting contract standards. The move reflects Kuwait’s ongoing efforts to enforce accountability and uphold quality in public development projects .

TL;DR:

• Nine companies banned from future tenders for violations under Law No. 49/2016 .
  
  
  
• Penalties include registry deletion, bans lasting one to three years, and permanent removal in severe cases.
  
  
• Bans apply until outstanding disputes, such as nonperformance, are resolved. Companies have rights to hearings and appeals within 30 days.
  

Details of the ban and legal framework
The bans were imposed under Article 85 of Law No. 49/2016, which governs the Public Tenders system in Kuwait. CAPT’s Board of Directors approved penalties that vary by severity:

• Several firms were deleted from Kuwait’s contractor registry and barred from tender participation for fixed periods—one, two, or three years, depending on the case seriousness.
  
• Some companies face bans until they resolve pending contractual disputes.
  
• In the gravest violations, firms faced permanent deletion and lifetime bans per Clause c of Article 85.
  

Article 85 authorizes penalties ranging from warnings and category reductions to removal from the tender registry for up to five years or permanently. These actions target contractors, suppliers, and service providers accountable for tender violations.

Due process and appeals
Before penalties were applied, CAPT followed strict procedural steps. Contractors or suppliers were summoned by registered letter, given opportunities to present their defense, and their statements were examined thoroughly. If a party failed to appear after proper notification, CAPT held hearings in absentia. Furthermore, companies subject to bans retain the right to appeal within 30 days to the Grievances Committee, following prescribed regulatory procedures. Penalties do not impact the contractual rights under existing agreements.

This enforcement move signals CAPT’s commitment to strengthening project quality, raising contractor accountability, and preserving Kuwait’s development integrity. By penalizing violators decisively, the authority aims to deter negligence and encourage contractors to meet required performance standards. Such regulatory rigor benefits the public sector and taxpayers by ensuring that projects adhere to timelines, legal requirements, and quality standards critical for nation-building.

FAQ

• 1. Why were nine firms banned from Kuwait’s public tenders?
  They were found violating contract terms, including negligence and failing to meet project standards.
  
• 2. What kinds of penalties did CAPT impose on these firms?
  Penalties include bans from future tenders for 1 to 3 years, deletion from contractor registries, and permanent bans in serious cases.
  
• 3. Can the banned companies appeal the CAPT decision?
  Yes, companies have the right to appeal within 30 days through the Grievances Committee.
  
• 4. Are companies banned immediately without hearings?
  No, companies are summoned, given chances to present their defense, and decisions may be issued in absentia if they do not appear.
  
• 5. Do the bans affect companies’ existing contracts?
  No, penalties do not impact the contractual rights as per the terms of existing agreements.