Article 5 of the Saudi Contractors Classification Law

This article deals with the financial limits of each grade of classification. A grade, under Article 1, is the result the contractor obtains on classification, and the financial limit ties that grade to a monetary value.

The article provides that:

• These financial limits are set and amended by the Minister of Municipal, Rural Affairs and Housing by decision of his.
• The decision is issued only after agreement with the Minister of Finance and the Minister of Economy and Planning, so the Minister of Municipal Affairs does not act alone.

The law itself does not state figures for these limits, nor how they are calculated; they are left to the decision issued under this article, and they can be amended in the same way. Anyone who wants to know the financial limit for a particular grade must therefore refer to the decision in force at the time.

This article complements Article 4, which empowers the Minister to set and amend the fields, activities and grades of classification by decision: Article 4 deals with the grades themselves, and this article deals with their financial limits. Article 6 then sets out the criteria for placing a contractor in the grade he deserves, including financial capacity and the total number, type and value of projects.