In 2025, Iraq entered a new phase in the regulation of public contracts. For local and foreign contractors, understanding these changes is no longer optional – it directly affects eligibility, risk, and profitability on government projects.

This article gives a practical overview of the new public contracts implementation framework in Iraq in 2025, with a focus on what has changed and what companies should do now.

1. Background: From 2014 Instructions to the 2025 Overhaul

For more than a decade, Iraqi public procurement and implementation of government contracts were governed mainly by:

• Instructions for the Implementation of Government Contracts No. (2) of 2014, and

• A series of controls and circulars issued by the General Government Contracts Department of the Ministry of Planning.

These 2014 instructions remain the backbone of Iraq’s public procurement system, but they have now been substantially updated and supplemented by a new 2025 package.

2. The 2025 Public Contracts Implementation Instructions

2.1 Cabinet approval and legal basis

On 3 June 2025, the Council of Ministers approved the issuance of Public Contracts Implementation Instructions for the year 2025 .

Later, the Deputy Prime Minister / Minister of Planning confirmed that the Ministry is implementing Cabinet Decision No. 442 of 2025, which authorizes the Ministry of Planning to prepare these new instructions and send them to the Iraqi Facts Directorate at the Ministry of Justice for publication in the Official Gazette.

In practice, this means:

• The 2025 instructions sit on top of the existing legislative framework;

• Once published in the Official Gazette, they will become the primary reference for the award and implementation of public contracts.

Key point for contractors: Always check whether a tender or contract explicitly refers to the new 2025 instructions and whether they have been officially published at the time you bid or sign.

3. 2025 Circulars and Controls: How Practice Is Changing

Parallel to the new instructions, the General Government Contracts Department has issued an intensive stream of circulars and controls in 2025, which are already shaping how contracts are implemented on the ground.

Some of the most important 2025 developments include:

3.1 Bank guarantees and performance security

A new set of rules on dealing with bank guarantees was issued in January 2025 (circular 4/7/2002 of 19/1/2025), providing unified guidance to contracting authorities on how to handle:

• Performance bonds and bid bonds,

• Extensions and renewals, and

• Enforcement of guarantees in case of contractor default.

Practical effect: banks and contractors should expect more standardized requirements and closer scrutiny when issuing and managing guarantees.

3.2 Work withdrawal Controls No. 23

In March 2025, the Ministry issued Controls No. 23 on “withdrawal of work”, explaining when and how authorities may withdraw work from a contractor, re-tender it, or assign it to another party.

This is crucial for:

• Lagging projects,

• Disputes about delays and responsibility,

• The financial and reputational exposure of contractors.

3.3 Late penalties and financial discipline

In September 2025, the Ministry published a circular introducing a mechanism for calculating late penalties.

Combined with the rules on work withdrawal, this reinforces:

• The link between delay and financial consequences;

• The expectation that contracting entities will apply penalties in a consistent, documented way.

3.4 Due diligence on foreign and Arab companies

In February 2025, circulars were issued setting a clearer mechanism for checking foreign and Arab companies before contracting with them.

This includes:

• Verifying registration and legal existence,

• Checking blacklists and lagging company lists,

• Ensuring compliance with Iraqi classification and security requirements.

3.5 Blacklist and lagging companies platforms

Throughout 2025, multiple circulars have added or removed companies from:

• The blacklist, and

• The lagging companies list ,

and in September 2025 the Ministry launched a digital query platform for these lists so entities can confirm a company’s status online.

For contractors, this means:

• Your performance history is more visible than ever;

• Being listed can instantly disqualify you from new tenders across the public sector.

3.6 Digital platforms for financial capacity and NDA

2025 also saw new digital tools and compliance requirements, including:

• A platform for issuing financial capacity letters and financing plans;

• An NDA (non-disclosure agreement) policy circular affecting the handling of confidential information in public contracts;

• A unified internal regulation system for self-financed and operationally funded entities in August 2025.

These changes push contractors toward better documentation, internal controls and transparency.

4. Digital Transformation of Public Procurement

The 2025 public contracts reform is closely linked with Iraq’s digitalization of procurement:

• The Ministry of Planning has rolled out a unified electronic platform for government contracts, used to advertise projects, share documents and support electronic processes.

The platform aims to:

• Increase transparency and access to tenders;

• Reduce discretionary or informal practices;

• Allow contractors including foreign bidders to track opportunities and interact with authorities online.

Action point: Make sure your bid team is registered and trained on the electronic platform and can comply with its technical and timing requirements.

5. What Has Really Changed for Contractors?

From a contractor’s perspective, the 2025 package can be summarized as follows:

1. More formalization and codification

   • The new 2025 instructions and 2025 controls formalize many practices that used to be handled informally under the 2014 regime.

2. Stronger risk management by the State

   • Tighter rules on guarantees, work withdrawal and late penalties are designed to protect public funds and keep projects on schedule.

3. Higher expectations on compliance and documentation

   • With digital platforms, blacklists, and financial capacity tools, authorities have better visibility and more levers to enforce compliance.

4. Closer scrutiny of foreign contractors

   • The due diligence mechanisms for foreign and Arab companies mean that documentation, corporate structure and track record will be more heavily examined.

6. Practical Recommendations for Bidders and Contractors

To adapt to the new 2025 environment, companies should:

1. Update internal templates and checklists

   • Align your bidding documents, contract templates, and internal procedures with the latest 2025 instructions and circulars, not just the 2014 text.

2. Review guarantee and risk clauses

   • Re-examine provisions on bank guarantees, delay, force majeure, and termination in line with the new Controls No. 23 and guarantee rules.

3. Monitor your blacklist / lagging status

   • Regularly check the Ministry’s digital blacklist and lagging companies platform and immediately address any issues that may affect eligibility.

4. Strengthen project controls

   • Invest in project management, documentation, and reporting, so that if a dispute arises about delay or performance, you have a solid record.

5. Train your teams on the electronic platform

   • Ensure that your commercial, legal and technical teams know how to use the e-procurement system, upload documents correctly and meet strict deadlines.

6. Seek legal review before signing

   • Given the speed of regulatory change in 2025, obtain specialized legal advice on key contracts to confirm which version of the instructions and controls apply and how they interact with your rights and obligations.

7. Conclusion

The 2025 public contracts implementation instructions and the accompanying 2025 circulars mark a significant shift in how Iraq manages public procurement and contract implementation.

For serious contractors Iraqi and foreign this creates both risk and opportunity:

• Risk, if you continue working as if nothing has changed;

• Opportunity, if you adapt early, strengthen compliance, and position your company as a trusted, rule-compliant partner for Iraqi public projects.

 

Sources:

https://moj.gov.iq/upload/pdf/1b8a5aada31e000a_4849_compressed.pdf

نائب رئيس مجلس الوزراء–وزير التخطيط يتابع إجراءات إصدار تعليمات تنفيذ العقود الحكومية

New Digital Platform for Iraq’s Government Contracts

التعاميم والضوابط لعام 2025

https://nabd.com/s/156013926-a01d7a/%D9%85%D8%AC%D9%84%D8%B3-%D8%A7%D9%84%D9%88%D8%B2%D8%B1%D8%A7%D8%A1-%D9%8A%D9%88%D8%A7%D9%81%D9%82-%D8%B9%D9%84%D9%89-%D8%A5%D8%B5%D8%AF%D8%A7%D8%B1-%D8%AA%D8%B9%D9%84%D9%8A%D9%85%D8%A7%D8%AA-%D8%AA%D9%86%D9%81%D9%8A%D8%B0-%D8%A7%D9%84%D8%B9%D9%82%D9%88%D8%AF-%D8%A7%D9%84%D8%B9%D8%A7%D9%85%D8%A9-%D9%84%D8%B3%D9%86%D8%A9-2025