Article 7 of the Saudi Contractors Classification Law
المادة 7 من نظام تصنيف المقاولين
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 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 7 explained in plain English
This article gives the contractor a right to request an amendment of his classification certificate after it is issued, so he is not bound by the first classification. The types of amendment the text mentions are:
- Raising any field or activity in the certificate.
- Adding a new field or activity to it.
- Deleting a field or activity from it.
The article limits this right with two conditions:
- The contractor must support his request with the information and data that back it; a request to raise, for example, needs what proves that the required criteria are met.
- The request must be made in accordance with the conditions set by the Regulations.
This article is connected to Article 6, which sets the classification criteria, namely financial capacity, technical, administrative and executive capacity, the total number, type and value of projects, and any criteria the Regulations set; the data supporting a request to raise or add normally relate to these criteria. Article 8 then provides that the Minister or his delegate issues the classification decision based on the information and data available, and grants a certificate accordingly.
The amendment in this article is a right of the contractor, which he requests on his own initiative. The article does not state in detail the fees for the request, its duration or the documents required; these are among the conditions it refers to the Regulations.
Practical example
A contracting establishment in Abha is classified in the buildings activity, then hires engineers and carries out water works projects. It may request that this activity be added to its classification certificate, attaching the information and data that support its request under the Regulations' conditions.
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 7 of the Saudi Contractors Classification Law
Can a contractor's classification grade be raised?
Yes. The article allows the contractor to request an amendment of his certificate by raising any field or activity, supporting the request with the information and data that back it.
Can an activity be deleted from a classification certificate?
Yes. Deletion is among the types of amendment the article mentions, under the conditions set by the Regulations.
What is required to amend a classification certificate?
The contractor must support his request with the information and data that back it, and meet the conditions set 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 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 10
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.
إذا حدث أي تغير قانوني على وضع المقاول مما يؤثر على تصنيفه، فعليه التقدم بطلب تعديل شهادة التصنيف وفقًا للحالات التي تحددها اللائحة.
- 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.