Article 467 of the Saudi Civil Transactions Law
المادة 467 من نظام المعاملات المدنية · الفرع الثاني: التزامات المقاول
The article governs the risk of loss or damage to the thing before delivery for a reason beyond the contractor's control: no fee or expenses for the contractor, and no claim for the value of materials against the contractor, with specified exceptions.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا هلك الشيء أو تلف بسبب لا يد للمقاول فيه قبل تسليمه لصاحب العمل؛ فليس للمقاول أن يطالب بالأجر المتفق عليه ولا بالنفقات التي تحملها؛ ما لم يكن صاحب العمل وقت الهلاك أو التلف مخلاًّ بالتزامه بتسلم العمل.
2- إذا كانت المواد مقدمة من صاحب العمل وهلك الشيء أو تلف قبل تسليمه له بسبب لا يد للمقاول فيه؛ فليس لصاحب العمل أن يُطالب المقاول بقيمتها ما لم يكن المقاول وقت الهلاك أو التلف قد أُعذر لإخلاله بتسليم العمل، ولم يثبت أن الشيء كان ليهلك أو يتلف لو أنه قام بالتسليم من غير إخلال بالتزامه.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 467 explained in plain English
This article deals with the case of loss or damage of the thing before it is delivered to the client for a reason beyond the contractor's control, and distributes the loss as follows:
Paragraph 1: the contractor loses the fee and expenses. The contractor may not claim the agreed fee or the expenses the contractor incurred. The exception is where, at the time of the loss or damage, the client was in breach of the obligation to take delivery of the work.
Paragraph 2: the client loses the materials. If the materials were supplied by the client and the thing is lost or damaged before delivery for a reason beyond the contractor's control, the client may not claim from the contractor the value of the materials. The exception is where two things come together:
- At the time of the loss or damage, the contractor had been called on to comply because of a failure to deliver the work.
- And it was not proven that the thing would have been lost or damaged even if the contractor had delivered without breach.
The rule is therefore that each party bears the loss of what it contributed where the loss occurs through an outside cause before delivery, unless one of them is at fault in delivering or taking delivery as the text states. Article 468 completes this rule for the case where the client refuses to take delivery without a lawful reason despite being notified. Because identifying the cause and proving the call to comply are delicate matters, it is advisable to consult a lawyer specializing in civil matters or in contracting and real estate cases.
Practical example
Majed contracted with a carpentry workshop in Dammam to make wooden doors from wood that Majed bought and delivered to the workshop. Before delivery, a fire broke out in the area through no fault of the workshop, and the doors burned. The workshop is not entitled to the fee or expenses, and Majed may not claim the value of the wood from it, unless the workshop had been called on to comply because of a failure to deliver and it is not proven that the doors would have burned even had they been delivered on time.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 467 of the Saudi Civil Transactions Law
Is the contractor entitled to the fee if the work is lost before delivery?
No, if the loss is for a reason beyond the contractor's control, unless the client was in breach of the obligation to take delivery of the work at the time of the loss.
Does the contractor guarantee the client's materials if they are damaged before delivery?
The client may not claim their value if the damage is for a reason beyond the contractor's control, unless the contractor had been called on to comply for failing to deliver and it is not proven that the thing would have been damaged even if delivered without breach.
How does the client's delay in taking delivery affect the risk of loss?
If at the time of the loss or damage the client was in breach of the obligation to take delivery of the work, the contractor's right to claim the fee and expenses is not lost.
More articles on Contracting (Construction) Contract
- Article 167
The article regulates performance of an obligation to perform work: the creditor's right to refuse performance by anyone but the debtor, performance at the debtor's expense with or without court permission when urgent, and a judgment standing in for the work.
إذا كان الالتزام بعمل فتسري على تنفيذه الأحكام الآتية: أ- إذا نص الاتفاق أو اقتضت طبيعة العمل أن ينفذ المدين الالتزام بنفسه جاز للدائن أن يرفض الوفاء من غير الم
- Article 461
The article defines the contracting (muqawala) contract as one in which the contractor undertakes to make a thing or perform work for a fee, without being subordinate to or an agent of the client.
المقاولة عقدٌ يلتزم بمقتضاه المقاول بصنع شيءٍ أو أداء عملٍ مقابل أجر دون أن يكون تابعًا لصاحب العمل ولا نائبًا عنه.
- Article 462
The article allows the contractor to carry out the work with materials supplied by the contractor or with materials supplied by the client.
يصح أن يكون التزام المقاول بتنفيذ العمل بمواد من عنده أو من صاحب العمل.
- Article 463
The article sets the contractor's obligations on materials: if the contractor supplies them, they must meet the specifications or be fit for the purpose by custom; if the client supplies them, the contractor must safeguard them, observe technical rules and return what is left.
1- إذا اشترط صاحب العمل أن يقدم المقاول المواد كلها أو بعضها؛ كان المقاول مسؤولًا عن توفر الشروط والمواصفات المتفق عليها إن وجدت، وإلا التزم بأن تكون وافيةً بال
- Article 464
The article puts the expenses of the machines and tools needed to complete the work on the contractor, unless the parties agree otherwise.
يتحمَّل المقاول نفقات ما يستلزمه إنجاز العمل من آلات وأدوات، ما لم يتفق على خلاف ذلك.
- Article 465
The article requires the contractor to complete the work according to the contract terms and within the agreed period, failing which according to the recognized standards and within the reasonable time the nature of the work requires.
يلتزم المقاول بإنجاز العمل وفقًا لشروط العقد وفي المدة المتفق عليها، فإن لم تكن هناك شروطٌ أو لم يُتفق على مدةٍ التزم بإنجازه وفقًا للأصول المتعارف عليها وفي ال
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.