Article 3 of the Saudi Contractors Classification Law

This is one of the law's most important articles in practice, because it shows the effect of classification on the contractor. It prohibits government bodies, authorities, institutions and agencies with public legal personality from two things:

• awarding any project subject to classification to a contractor;
• accepting any bid or tender from a contractor for that project.

unless two conditions are both met:

1. the contractor is classified;
2. the project falls within the field, activity and grade in which the contractor is classified.

It is not enough for the contractor to be classified in general terms: if he is classified in another field, or in a grade not suited to the project, the government body may not accept his bid or award him the project. Field, activity and grade are terms defined in Article 1, and the Ministry carries out classification under Article 2.

Note that the prohibition concerns projects that are subject to classification, and this article does not specify what those projects are. The article also directs the prohibition to the government bodies themselves, which are the ones required to verify the contractor's classification before award. Anyone who wants to compete for a government project and doubts that their classification fits should consult a lawyer specialized in government contracts and administrative matters.