Oman updates unified government contracts and removes 5% retention

Oman’s Ministry of Finance announced on 27 October 2026 a new design, procurement and construction contract and updated construction and engineering-consultancy contracts. The ministry says these standard contracts are mandatory for government entities subject to the Tender Law.

Contracting implications

The announcement removes retention equivalent to 5% of actual contract value and includes local-content and Omanisation obligations. Retention is not a performance guarantee; the announcement should not be read as eliminating all guarantees.

This is a policy update, not a tender or award. Contractors should check the applicable contract version and project-specific conditions; no automatic application to every existing contract is asserted here.

Sources: Oman Ministry of Finance, 27 October 2026. Reviewed 28 October 2026.