Article 12 of the Saudi Government Tenders and Procurement Law
المادة 12 من نظام المنافسات والمشتريات الحكومية · الفصل الخامس: التخطيط المسبق
The article requires government entities to plan their works and procurement in advance and publish an annual plan at the start of each fiscal year, without the publication creating any obligation.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على الجهة الحكومية التخطيط المسبق لأعمالها ومشترياتها والتنسيق مع الوزارة في توفير الاعتمادات المالية لها، وتلتزم في بداية كل سنة مالية بنشر خطة تتناسب مع ميزانيتها تتضمن المعلومات الرئيسة حول أعمالها ومشترياتها خلال هذه السنة، وذلك دون إخلال بما يقتضيه الأمن الوطني من سرية.
2- لا يترتب على نشر الجهة الحكومية خطط أعمالها ومشترياتها أي التزام.
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 12 explained in plain English
This article governs advance planning of works and procurement, and contains two rulings:
First: the government entity's duties (paragraph 1)
- Plan its works and procurement in advance.
- Coordinate with the Ministry (the Ministry of Finance under Article 1) in securing the financial appropriations for them.
- Publish a plan at the start of each fiscal year that matches its budget and contains the key information about its works and procurement during that year.
- Publication is without prejudice to the secrecy that national security requires; what protecting national security requires to be kept confidential need not be published.
Second: publication creates no obligation (paragraph 2)
An entity's publication of its plans creates no obligation. The published plan is information and planning, not a promise to contract or an undertaking to put out everything in it.
What it means for the private sector: The plan lets contractors and suppliers learn the expected works and procurement and prepare for them, but a project's appearing in the plan does not oblige the entity to put it out, under paragraph 2.
Article 11 subjects works and procurement carried out outside the Kingdom to the Law with possible exemption from some of its provisions under the Implementing Regulations. Establishing the portal and publishing information on it is governed by Article 13.
Practical example
A construction company in Riyadh looked at a government entity's plan published at the start of the fiscal year and found in it a project to build an administrative building, so it got its team ready to bid. But the entity did not put the project out that year. Under paragraph 2, publishing the plan creates no obligation on the entity.
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 12 of the Saudi Government Tenders and Procurement Law
Is a government entity bound to carry out what is in its published procurement plan?
No. Paragraph 2 provides that a government entity's publication of its works and procurement plans creates no obligation.
When do government entities publish their procurement plans?
At the start of each fiscal year, with a plan that matches their budget and contains the key information about their works and procurement during the year.
Does the entity publish all the details of its procurement?
It publishes the key information, and without prejudice to the secrecy national security requires.
More articles on General Provisions and Principles of Government Tenders
- Article 1
The article defines the key terms used in the Government Tenders and Procurement Law, such as government entities, the portal, the framework agreement, qualification, the standstill period, and emergency and urgent cases.
يقصد بالعبارات والمصطلحات الآتية -أينما وردت في هذا النظام- المعاني الموضحة أمام كل منها، ما لم يقتض السياق خلاف ذلك: النظام: نظام المنافسات والمشتريات الحكومية
- Article 2
The article sets out the Law's objectives: regulating procedures for works and procurement and preventing abuse of influence, achieving the best value for public funds, and promoting integrity, equality, transparency and economic development.
يهدف النظام إلى الآتي: 1- تنظيم الإجراءات ذات الصلة بالأعمال والمشتريات، ومنع استغلال النفوذ وتأثير المصالح الشخصية فيها؛ وذلك حماية للمال العام. 2- تحقيق أفضل
- Article 3
The article requires government entities to deal only with licensed persons, and, when dealing with foreigners inside the Kingdom, to first confirm that there is not more than one qualified local person.
1- تتعامل الجهات الحكومية عند تنفيذ أعمالها وتأمين مشترياتها مع الأشخاص المرخص لهم بذلك، طبقاً للأنظمة والقواعد المتبعة. 2- على الجهة الحكومية عند تعاملها مع أش
- Article 4
The article provides that everyone who meets the conditions for dealing with a government entity is given equal opportunities and treated on an equal footing with others.
يعطى جميع الأشخاص الراغبين في التعامل مع الجهة الحكومية، ممن تتوافر فيهم الشروط التي تؤهلهم لهذا التعامل؛ فرصاً متساوية ويعاملون على قدم المساواة.
- Article 5
The article requires clear, unified information about the required works and procurement to be provided to competitors, and requires that they be able to obtain it at a set time.
تُوفَر للمتنافسين معلومات واضحة وموحدة عن الأعمال والمشتريات المطلوبة، ويمكَنون من الحصول عليها في وقت محدد.
- Article 6
The article subjects public tenders to three principles: openness, transparency and equal opportunity.
تخضع المنافسة العامة لمبادئ العلانية والشفافية وتكافؤ الفرص.
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.