In force
Saudi Contractors Classification Law
نظام تصنيف المقاولين
Governs the classification of contractors in Saudi Arabia, including classification certificates, fields, activities and grades, the classification required for government projects, violations, penalties and objections. It replaces the previous 1427 AH law.
- Articles
- 19
- In force
- 19
- Amended
- 0
- Issued
- 18/1/1443 AH
Issued by: مرسوم ملكي رقم (م/9) وتاريخ 1443/1/18هـ · قرار مجلس الوزراء رقم (49) وتاريخ 1443/1/16هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Contractors Classification Law by topic
Definitions in the Contractors Classification Law5 articlesClassification Fields, Grades and Criteria3 articlesThe Contractor's Classification Certificate and Amending It6 articlesClassification Required for Government Projects3 articlesClassification Violations and Penalties3 articlesObjecting to Classification Decisions1 article
Articles of the Saudi Contractors Classification Law
- Article 1The article defines the key terms of the Contractors Classification Law, such as the Ministry, classification, contractor, field, activity, grade and criterion.
- Article 2The article makes the Ministry of Municipal, Rural Affairs and Housing responsible for classification and for issuing, amending, suspending and canceling its certificates, deciding applications within a period set by the Regulations.
- Article 3The article bars government bodies and public legal entities from awarding or accepting a bid for a project subject to classification except to a contractor classified in the appropriate field, activity and grade.
- Article 4The article empowers the Minister to set and amend the fields, activities and grades of classification by decision, under the Regulations' controls and based on the National Guide to Economic Activities.
- Article 5The article provides that the financial limits for each classification grade are set and amended by decision of the Minister after agreement with the Minister of Finance and the Minister of Economy and Planning.
- Article 6The article sets the criteria for placing a contractor in the grade he deserves: financial capacity, technical, administrative and executive capacity, number, type and value of projects, and any criteria the Regulations set.
- Article 7The article lets a contractor request an amendment of his classification certificate by raising, adding or deleting a field or activity, supported by information and data as the Regulations require.
- Article 8The article provides that the Minister or his delegate issues the decision classifying the contractor in the field or activity and grade he deserves, and a certificate is granted for the period set by the Regulations.
- Article 9The article requires that when contractors join in a project, each is classified in its field, at least one in the required field and grade, and the others in the same grade or one grade lower.
- Article 10The article requires a contractor to request an amendment of his classification certificate when a legal change in his status affects his classification, in the cases the Regulations specify.
- Article 11The article provides that a contractor licensed under the Foreign Investment Law is classified by the same procedures as a Saudi contractor, and the Council of Ministers may exempt him under controls it sets.
- Article 12The article allows the Ministry to charge a fee for its services under the law, with the services and fees set by agreement with the Ministry of Finance.
- Article 13The article requires government bodies and public legal entities to supply the Ministry with the information and remarks it requests about contractors and their completed or ongoing projects for classification purposes.
- Article 14The article provides that inspectors named by the Minister's decision detect and record violations of the law and Regulations, examine records and obtain copies of necessary documents.
- Article 15The article sets the penalties for violating the law or Regulations: lowering the classification grade, suspending it and barring renewal for up to five years, or canceling it, with a violations schedule issued by the Minister.
- Article 16The article creates a committee of at least 3 members to hear contractors' objections to classification decisions and violations and approve penalties, with its decisions open to grievance before the Administrative Court.
- Article 17The article requires the Minister to issue the Implementing Regulations of the Contractors Classification Law within 90 days of the law's publication in the Official Gazette.
- Article 18The article provides that the Contractors Classification Law is published in the Official Gazette and takes effect 90 days after the date of its publication.
- Article 19The article provides that this law replaces the Contractors Classification Law issued by Royal Decree No. M/18 dated 20/3/1427 AH and repeals any provisions that conflict with it.