Article 468 of the Saudi Civil Transactions Law
المادة 468 من نظام المعاملات المدنية · الفرع الثالث: التزامات صاحب العمل
The article requires the client to promptly take delivery of the work once completed; if the client refuses without a lawful reason despite being notified, and it is lost or damaged without the contractor's wrongdoing or default, the contractor owes no compensation.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا أتم المقاول العمل ووضعه تحت تصرف صاحب العمل لزمته المبادرة إلى تسلمه، فإن امتنع بغير سبب مشروع رغم إعلامه بذلك وهلك في يد المقاول أو تلف دون تعديه أو تقصيره؛ لم يلزم المقاول التعويض.
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 468 explained in plain English
This article regulates the client's obligation to take delivery of the work and the effect of refusing it.
When does the obligation arise? When the contractor completes the work and places it at the client's disposal, the client must promptly take delivery of it.
The effect of refusal: the contractor does not owe compensation for the loss or damage of the work if the following conditions are all met:
- The client refuses to take delivery without a lawful reason.
- This is despite being notified that the work is completed and placed at the client's disposal.
- The work is lost or damaged in the contractor's hands without the contractor's wrongdoing or default.
If the refusal has a lawful reason, or the client was not notified, or the loss was due to the contractor's wrongdoing or default, this rule does not apply according to the text.
This article is consistent with Article 467, which makes the client's breach of the obligation to take delivery of the work at the time of loss or damage a reason for the contractor to keep the right to claim the fee and expenses. It is followed by Article 469, which ties payment of the fee to delivery of the work unless otherwise agreed. The contractor should therefore document notifying the client that the work is complete. In a dispute it is possible to consult a lawyer specializing in civil matters or in contracting and real estate cases.
Practical example
A contractor finished making awnings for the car parks of a rest-house in Taif and notified its owner that they were ready for delivery, but the owner refused to take delivery without a lawful reason. The awnings were then damaged in the contractor's workshop by a storm, with no wrongdoing or default by the contractor. Here the contractor is not bound to compensate the owner of the rest-house.
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 468 of the Saudi Civil Transactions Law
Must the client take delivery of the work as soon as it is finished?
If the contractor completes the work and places it at the client's disposal, the client must promptly take delivery of it.
Is the contractor liable for damage to the work if the client refused to take it?
The contractor owes no compensation if the client refused without a lawful reason despite being notified, and the work was lost or damaged without the contractor's wrongdoing or default.
What if the damage was caused by the contractor's default?
The rule that no compensation is owed is conditional on the loss or damage occurring without the contractor's wrongdoing or default.
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.