Construction—Iraq—Q&A guide

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Construction—Iraq—Q&A guide
  • 1. If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?
  • 2. Must foreign designers and contractors be licensed locally to work and, if so, what are the consequences of working without a licence?
  • 3. Do local laws provide any advantage to domestic contractors in competition with foreign contractors?
  • 4. What legal protections exist to ensure fair and open competition to secure contracts with public entities, and to prevent bid rigging or other anticompetitive behaviour?
  • 5. If a contractor has illegally obtained the award of a contract, for example by bribery, will the contract be enforceable? Are bribe-givers and bribe-takers prosecuted and, if so, what are the penalties they face? Are facilitation payments allowable under local law?
  • 6. Under local law, must employees of the project team members report suspicion or knowledge of bribery of government employees and, if so, what are the penalties for failure to report?
  • 7. Is the making of political contributions part of doing business? If so, are there laws that restrict the ability of contractors or design professionals to work for public agencies because of their financial support for political candidates or parties?
  • 8. Is a construction manager or other construction professional acting as a public entity’s representative or agent on a project (and its employees) subject to the same anti-corruption and compliance rules as government employees?
  • 9. Are there any other important legal issues that may present obstacles to a foreign contractor attempting to do business in your jurisdiction?
  • More...

Construction—Iraq—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to construction in Iraq published as part of the Lexology Getting the Deal Through series by Law Business Research (published: May 2021).

Authors: Al Hadeel Al Hasan Law—Hadeel A. Hasan

1. If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?

The main concern would be the licensability of the business, whether it was carried out by an individual designer or contractor or by an entity, as the licence of the business is the critical element in getting that business set up and functioning; then, there are the regulatory compliance and sectoral approvals that the business needs to be aware of and adhere to. 

Generally, the foreign designer or contractor can register a branch of its entity that must be already incorporated out of Iraq at least two years before applying for its branch registration in Iraq. This branch will be allowed to use tenders or contracts with Iraqi entities subject to the above restrictions and the other special requirements for each tender or contract. 

The Code of the Iraqi Engineers Syndicate No. 51 of 1979 (as amended) prevents engineers who are not listed in the Syndicate 'or those members who have not fulfilled their obligations under provisions of this

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