Article 2 of the Saudi Contractors Classification Law
المادة 2 من نظام تصنيف المقاولين
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.
Official text (Arabic)
This article has not been amended since the law was issued.
تتولى الوزارة -بالتنسيق مع الجهات ذات العلاقة- التصنيف وإصدار شهادات التصنيف وتعديلها وإيقافها وإلغاءها، وفق أحكام النظام واللائحــــة، على أن يبت في طلب التصنيف أو تعديله خلال مدة 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 2 explained in plain English
This article identifies the competent authority for classifying contractors: the Ministry, meaning the Ministry of Municipal, Rural Affairs and Housing as defined in Article 1. The Ministry does so in coordination with the relevant bodies.
The Ministry's tasks, according to the text, include:
- classification itself, that is, assessing the contractor's capabilities and placing him in the field, activity and grade he deserves;
- issuing classification certificates;
- amending certificates;
- suspending them;
- canceling them.
The Ministry performs these tasks in accordance with the provisions of the law and the Regulations, not at its absolute discretion.
The article adds an important safeguard for the contractor: an application for classification or for amending it must be decided within a period set by the Regulations. The law does not set this period itself; it refers it to the Implementing Regulations, so they should be consulted to find the period.
It is important to note that Article 3 ties this classification to government projects, by preventing government bodies from awarding or accepting a bid for a project subject to classification except to a contractor classified in the appropriate field, activity and grade. Anyone who faces a delay in their application, or a decision suspending or canceling their certificate, may consult a lawyer specialized in administrative and contracting matters.
Practical example
A contracting company in Riyadh applies for classification for the first time so that it can compete for government projects. The body that considers its application is the Ministry of Municipal, Rural Affairs and Housing, which must decide it within the period set by the Regulations, then issue the classification certificate if the company deserves it.
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 2 of the Saudi Contractors Classification Law
Which body issues the contractor classification certificate?
The Ministry of Municipal, Rural Affairs and Housing, in coordination with the relevant bodies, in accordance with the provisions of the law and the Regulations.
How long does it take to decide a classification application?
The law does not set the period itself; it provides that the application be decided within a period set by the Implementing Regulations.
Can a classification certificate be suspended or canceled?
Yes. The article makes suspending and canceling classification certificates among the Ministry's tasks, in accordance with the law and the Regulations.
More articles on Definitions in the Contractors Classification Law
- Article 1
The article defines the key terms of the Contractors Classification Law, such as the Ministry, classification, contractor, field, activity, grade and criterion.
يقصد بالألفاظ الآتية أينما وردت في هذا النظام المعاني المبينة أمامها ما لم يقتض السياق غير ذلك: الوزارة: وزارة الشؤون البلدية والقروية والإسكان. الوزير: وزير ال
- Article 17
The 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.
يصدر الوزير اللائحة خلال (تسعين) يومًا من تاريخ نشر النظام في الجريدة الرسمية.
- Article 18
The article provides that the Contractors Classification Law is published in the Official Gazette and takes effect 90 days after the date of its publication.
ينشر النظام في الجريدة الرسمية، ويعمل به بعد مضي (تسعين) يومًا من تاريخ نشره.
- Article 19
The 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.
يحل النظام محل نظام تصنيف المقاولين الصادر بالمرسوم الملكي رقم (م / 18) وتاريخ 20 / 3 / 1427ه، ويلغي كل ما يتعارض معه من أحكام.
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.