1. Not reading the full bidding documents and their addenda
The bidding documents (pliego de cargos) are the rules of the game, and the addenda modify them. Submitting a bid amounts to accepting the bidding documents without reservations or conditions (article 51 of the Single Text of Law 22 of 2006). If a clause seems unclear or unlawful to you, raise it before the submission date, through the channels the procedure itself provides.
2. Bidding with conditions or caveats
Adding phrases such as “subject to availability” or “price valid for 15 days”, when the bidding documents require something else, can lead to the rejection of the bid. If something cannot be met as requested, the way forward is to clarify it or challenge it in time, not to make the offer conditional.
3. A bid bond that does not match the bidding documents
The bid bond guarantees that the bidder will keep its offer and sign the contract if it wins. Check that the amount, validity, beneficiary and tender number are exactly those required by the bidding documents, and that it is issued by an authorized entity.
4. Expired or inconsistent documents
Public Registry certificates, tax clearance certificates, powers of attorney and signatures are the most frequent grounds for objections. Check the issue dates required by the bidding documents, that the company name is identical in all documents and that the signatory has sufficient authority.
5. Omitting the beneficial ownership declaration
In tenders above B/.500,000.00, the bidder must declare the natural persons who hold at least 10% of its capital, and update that declaration every year. Failing to do so prevents participation (article 41 of the Single Text).
6. Being disqualified without knowing it
The law bars from contracting, among others, those with outstanding fines or who are debarred, those who took part in preparing the tender and those who submitted false information (article 24 of the Single Text). Check this before investing time in the bid.
7. Leaving it to the last minute
Bids are submitted through PanamaCompra and the deadline is strict. A connection failure, a corrupted file or a document that does not upload in time cannot be fixed afterwards. Plan the upload with at least one day of margin.
If your bid was disqualified
The law offers two tools, and each has its moment:
- The claim (acción de reclamo), before the Directorate General of Public Procurement, against unlawful or arbitrary acts or omissions during the procedure, before the award.
- The challenge (recurso de impugnación), before the Administrative Public Procurement Tribunal, against the award, the declaration that the tender is void or the rejection of bids. It requires a challenge bond of 10% of the reference price for goods and services and 15% for works. Its omission cannot be remedied.
Legal basis: Single Text of Law 22 of 2006, as consolidated by Law 153 of 2020, and criteria published by the Administrative Public Procurement Tribunal. In force as of October 2026.
This publication is for information only and does not constitute legal advice. Translation of the original Spanish version. In case of discrepancy, the Spanish version prevails.