Article 8 of the Saudi Contractors Classification Law
المادة 8 من نظام تصنيف المقاولين
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 شهادة بذلك وفق المدة المحددة في 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 8 explained in plain English
This article deals with the classification decision itself and the certificate that follows it. It shows the following:
- Who issues the decision: the Minister of Municipal, Rural Affairs and Housing or his delegate, so the Minister need not sign it personally.
- Content of the decision: determining the field or fields, or the activity or activities, and the grade the contractor deserves.
- Basis of the decision: the information and data available about the contractor. This means the accuracy of the data the contractor provides affects the result of his classification.
- The certificate: the contractor is granted a classification certificate for the period specified in the Regulations.
The law does not set this period; it refers it to the Implementing Regulations. It is also understood from the text that the decision may cover more than one field or activity, since the text says "field or fields" and "activity or activities".
After the certificate is issued, the contractor may, under Article 7, request its amendment by raising, adding or deleting any field or activity, supporting his request with the information and data that back it. Anyone with objections to their classification decision should consult a lawyer specialized in administrative and contracting matters to learn the route of objection.
Practical example
After a contracting company in Makkah submitted its financial and technical data, a decision was issued by the Minister or his delegate classifying it in two fields and a certain grade, and it was granted a certificate for the period set by the Regulations. A year later it carried out new projects, so it could request amendment of its certificate under Article 7.
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 8 of the Saudi Contractors Classification Law
Who issues the contractor classification decision?
The Minister of Municipal, Rural Affairs and Housing or his delegate.
For what period is the classification certificate granted?
The law does not set it; the certificate is granted for the period specified in the Implementing Regulations.
On what basis is the classification decision issued?
On the information and data available about the contractor.
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 7
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.
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
- 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.