Article 471 of the Saudi Civil Transactions Law
المادة 471 من نظام المعاملات المدنية · الفرع الثالث: التزامات صاحب العمل
In a lump-sum contract, the contractor may not claim a higher fee for price rises or design changes except on conditions, and the court may rebalance the contract in exceptional general circumstances.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا تم عقد المقاولة بموجب تصميمٍ متفقٍ عليه مقابل أجرٍ إجماليٍّ فليس للمقاول أن يطالب بأيّ زيادةٍ في الأجر ولو ارتفعت أسعار المواد المستخدمة في العمل أو ارتفعت أجور العمال أو غيرها من النفقات.
2- ليس للمقاول إذا حدث في التصميم تعديل أو إضافة أن يطالب بأي زيادة في الأجر إلا إذا كان ذلك راجعًا إلى خطأ صاحب العمل أو كان بإذنه واتفق مع المقاول على الزيادة في الأجر.
3- إذا انهار التوازن العقدي بين التزامات كل من صاحب العمل والمقاول بسبب ظروف استثنائيةٍ عامَّةٍ لم يكن في الوسع توقعها وقت التعاقد وتداعى بذلك الأساس الذي قام عليه التقدير المالي لعقد المقاولة، فللمحكمة تبعًا للظروف بعد الموازنة بين مصلحة الطرفين أن تقضي بإعادة التوازن العقدي، بما في ذلك تمديد مدة التنفيذ أو زيادة الأجر أو إنقاصه، أو أن تقضي بفسخ 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 471 explained in plain English
This article regulates a contracting contract made under an agreed design for a lump-sum fee, that is, a fixed sum for the whole work, and sets three rules:
1. The fee stays fixed despite rising costs: the contractor may not claim any increase in the fee even if the prices of materials or workers' wages or other expenses rise. The contractor bears the risk of ordinary cost fluctuations in this kind of contract.
2. Changing or adding to the design: the contractor may not claim an increase in the fee if the design is changed or added to, except in one of two cases:
- The change or addition is attributable to the client's fault.
- It was made with the client's permission and the client agreed with the contractor on the increase in the fee.
3. Exceptional general circumstances: if the contractual balance collapses between the parties' obligations because of exceptional general circumstances that could not have been foreseen when contracting, and the basis on which the financial estimate of the contract rested falls apart, then the court, according to the circumstances and after weighing the interest of both parties, may rule for restoring the contractual balance, including extending the performance period or increasing or reducing the fee, or may rule for termination of the contract.
This rule differs from contracts on a unit-basis estimate, whose excess is regulated by Article 470. Note that paragraph 3 does not apply to a mere ordinary rise in prices; it requires the circumstances to be exceptional, general and unforeseeable, and the contractual balance to collapse because of them. To assess whether these conditions apply, it is advisable to consult a lawyer specializing in civil matters or in contracting and real estate cases.
Practical example
Ibrahim contracted with a contractor to build a house in Buraidah for a lump sum under an agreed design, and then the price of steel rose by an ordinary market increase. The contractor may not claim a higher fee for that reason. But if Ibrahim asked for a room to be added to the design and agreed with the contractor on an increase in the fee, the contractor may claim the agreed increase.
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 471 of the Saudi Civil Transactions Law
Can the contractor raise the price if material prices rise?
In a lump-sum contract under an agreed design, the contractor may not claim any increase even if the prices of materials, workers' wages or other expenses rise.
When is the contractor entitled to an increase because of a design change?
If the change or addition is attributable to the client's fault, or was made with the client's permission and the client agreed with the contractor on the increase.
What happens if exceptional general circumstances that could not be foreseen occur?
If the contractual balance collapses because of them and the financial basis of the contract falls apart, the court may rule for restoring the balance, such as extending the period or increasing or reducing the fee, or for termination of the contract.
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.