Article 470 of the Saudi Civil Transactions Law
المادة 470 من نظام المعاملات المدنية · الفرع الثالث: التزامات صاحب العمل
The article requires the contractor to notify the client at once of an apparent excess over the estimate, failing which the contractor loses the right to claim it, and lets the client withdraw from the contract if the excess is serious.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا أُبرم عقد بمقتضى مقايسةٍ على أساس الوحدة وتبين أثناء العمل أن من الضروري لتنفيذ التصميم المتفق عليه مجاوزة المقايسة المقدرة مجاوزةً ظاهرةً؛ لزم المقاول أن يعلم في الحال صاحب العمل بذلك مبينًا مقدار ما يتوقعه من زيادة في الأجر، فإن لم يفعل سقط حقه في طلب ما جاوز به قيمة المقايسة من نفقات.
2- إذا كانت المجاوزة التي يقتضيها تنفيذ التصميم جسيمةً؛ فلصاحب العمل أن يتحلل من العقد ويوقف التنفيذ، على أن يكون ذلك دون تأخر، مع إيفاء المقاول قيمة ما أنجزه من الأعمال مقدرةً وفقًا لشروط العقد.
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 470 explained in plain English
This article deals with contracting contracts made under an estimate on a unit basis, that is, a contract in which the volume of work is estimated in advance and the fee is calculated at a unit price. It may become clear during performance that the estimated quantities are not enough to carry out the agreed design.
Paragraph 1: the duty to notify. If it becomes clear that carrying out the design requires exceeding the estimate to an apparent degree:
- The contractor must notify the client at once.
- And state the amount of the increase in the fee that the contractor expects.
- If the contractor does not, the contractor loses the right to claim the expenses by which the estimate was exceeded.
Paragraph 2: the client's right to withdraw. If the excess is serious, the client may withdraw from the contract and stop performance, on two conditions:
- This must be done without delay.
- The client must pay the contractor the value of what the contractor completed, assessed according to the contract terms.
The article protects the client from cost surprises, and protects the contractor by guaranteeing the value of what was completed. It is linked to Article 469, which regulates payment in proportion to progress where the fee is set on a unit basis, and differs from the rule on a lump-sum fee that Article 471 regulates. The text does not set a percentage at which an excess becomes "apparent" or "serious", so in a dispute it is advisable to consult a lawyer specializing in civil matters or in contracting and real estate cases.
Practical example
Saud contracted with a contractor to build a warehouse in Al-Kharj under an estimate based on a price per cubic meter of concrete. While digging, the contractor found that the design needed much larger quantities than estimated. The contractor must notify Saud at once and state the expected increase in the fee, otherwise the contractor loses the right to claim what exceeds the estimate. If the increase is serious, Saud may withdraw from the contract without delay and stop performance, paying the value of what was completed under the contract terms.
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 470 of the Saudi Civil Transactions Law
What must the contractor do if the work exceeds the estimate?
If the excess is apparent, the contractor must notify the client at once, stating the expected increase in the fee.
What happens if the contractor does not report exceeding the estimate?
The contractor loses the right to claim the expenses by which the estimate was exceeded.
May the client stop the project if the cost rises sharply?
If the excess is serious, the client may withdraw from the contract and stop performance without delay, paying the contractor the value of what was completed under the contract terms.
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.