Article 6 of the Saudi Contractors Classification Law

This article shows on what basis a contractor is placed in his grade. It provides that the contractor is classified in the grade he deserves, in one or more fields or activities, in accordance with the following criteria and conditions:

1. Financial capacity: measured, according to the text, by the contractor's financial statements.
2. Technical, administrative and executive capacity: including organizational structures and administrative and technical staff.
3. The total number, type and value of projects.

The article then adds any other criteria or conditions set by the Regulations, so the list above is not exhaustive, and the Implementing Regulations may add others.

This is consistent with the definition of classification in Article 1 as an assessment of the contractor's financial, technical, administrative and executive capabilities. It is also understood from the text that a contractor may be classified in more than one field or activity, not only one.

The article does not set the weights of these criteria or the minimum required in each to reach a particular grade; that is left to the Regulations. In practice, a contractor who wants a higher grade needs financial statements, a structure, staff and a project record that support it, and may request an amendment of his certificate under Article 7.