Article 10 of the Saudi Contractors Classification Law
المادة 10 من نظام تصنيف المقاولين
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا حدث أي تغير قانوني على وضع المقاول مما يؤثر على تصنيفه، فعليه التقدم بطلب تعديل شهادة التصنيف وفقًا للحالات التي تحددها اللائحة.
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 10 explained in plain English
This article places an obligation on the contractor; it speaks not of a mere possibility of requesting amendment but of a duty. If two conditions are met, the contractor must apply to amend the classification certificate:
- A legal change occurs in the contractor's status.
- The change is one that affects his classification.
The article limits this by requiring that it be in the cases specified by the Regulations. The law does not list these cases or state what counts as a legal change that has an effect; it leaves that to the Implementing Regulations. One should therefore not assume that every change in the business requires an amendment, or the opposite, without consulting the Regulations.
The purpose of this obligation is that the classification certificate remain consistent with the contractor's real situation, because classification, as defined in Article 1, is an assessment of the contractor's financial, technical, administrative and executive capabilities to place him in the field, activity and grade he deserves. This article comes after Article 9, which sets the conditions for contractors joining together, and before Article 11, on the contractor licensed under the foreign investment law.
The article mentions no specific penalty for someone who does not request the amendment. Anyone who has gone through a change in legal status and wonders about its effect should consult a lawyer specialized in company and contracting matters.
Practical example
A contracting company in Riyadh is classified in a certain grade, then a legal change occurs in its status that affects its classification. If its case is one of those specified by the Regulations, it must apply to amend the classification certificate rather than continue with the previous certificate.
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 10 of the Saudi Contractors Classification Law
When must a contractor amend the classification certificate?
If a legal change occurs in his status that affects his classification, in the cases specified by the Regulations.
Which cases count as a legal change?
The law does not specify them; it refers them to the Implementing Regulations.
Does every change in the business require amending the certificate?
The article requires the change to be legal, to affect classification, and to be one of the cases specified by the Regulations.
More articles on The Contractor's Classification Certificate and Amending It
- Article 2
The 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.
تتولى الوزارة -بالتنسيق مع الجهات ذات العلاقة- التصنيف وإصدار شهادات التصنيف وتعديلها وإيقافها وإلغاءها، وفق أحكام النظام واللائحــــة، على أن يبت في طلب التصني
- Article 7
The 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.
للمقاول أن يطلب تعديل شهادة تصنيفه برفع أي مجال (أو نشاط) أو إضافته أو حذفه منها، على أن يعزز طلبه بالمعلومات والبيانات التي تؤيد ذلك، وفقًا للشروط التي تحددها
- Article 8
The 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.
يصدر الوزير أو من يفوضه قرارًا بتصنيف المقاول في المجال (أو المجالات) أو النشاط (أو الأنشطة)، والدرجة التي يستحقها، بناءً على ما توافر من معلومات وبيانات، ويمنح
- Article 11
The 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.
يصنف المقاول المرخص له بالعمل وفقًا لنظام الاستثمار الأجنبي حسب الإجراءات المعمول بها في تصنيف المقاول السعودي. ولمجلس الوزراء استثناؤه وفق ضوابط يضعها لذلك.
- Article 12
The 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.
تتقاضى الوزارة مقابلًا ماليًّا عن الخدمات التي تقدمها وفق أحكام النظام، على أن تحدد هذه الخدمات والمقابل المالي لها بالاتفاق مع وزارة المالية.
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.