Article 18 of the Saudi Government Tenders and Procurement Law
المادة 18 من نظام المنافسات والمشتريات الحكومية · الفصل الثامن: شروط التعامل وتأهيل المتنافسين
The article requires those government entities deal with to meet the conditions needed to carry out works and secure procurement, and refers the details to the Implementing Regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب أن تتوافر في الأشخاص الذين تتعامل معهم الجهات الحكومية الشروط اللازمة لتنفيذ الأعمال وتأمين المشتريات وفقاً لما توضحه 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 18 explained in plain English
This article sets a general principle: persons with whom government entities deal must meet the conditions needed to carry out works and secure procurement.
What are these conditions? The article does not state them but refers to the Implementing Regulations to explain them. Anyone who wishes to deal with a government entity needs to consult the Implementing Regulations to learn the conditions required of him.
How is it understood with the other articles?
- Article 19 provides that the government entity carries out pre-qualification or post-qualification, which is the way to verify that competitors have the qualifications and capabilities, according to the definition of qualification in Article 1.
- Article 17 regulates the portal through which tenders are put out and in which information is made available to interested parties.
What does this mean in practice? It is not enough for a person to wish to deal with the government entity; he must meet the conditions the Implementing Regulations set. Related to this, the government entity deals only with those who meet these conditions.
Because the details of the conditions are in the Implementing Regulations and not in the Law, an enterprise wishing to enter government tenders would do well to verify that it meets the conditions before applying, and to consult a lawyer who specializes in government contracts and administrative disputes if in doubt.
Practical example
A start-up in Khobar that supplies safety equipment wants to apply for its first government tender. Before applying, it must verify that it meets the conditions needed to secure procurement as the Implementing Regulations explain, because this article permits dealing only with those who meet those 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 18 of the Saudi Government Tenders and Procurement Law
What are the conditions for dealing with government entities?
The article requires that the conditions needed to carry out works and secure procurement be met, and refers their details to the Implementing Regulations.
How does a government entity verify that the conditions are met?
Through pre-qualification or post-qualification, which Article 19 provides for, as the Implementing Regulations explain.
Does the article state the conditions in detail?
No. It sets out the principle and refers the details to the Implementing Regulations.
More articles on Qualifying Bidders and Dealing Conditions
- 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 19
The article requires the government entity to carry out pre-qualification or post-qualification, and where pre-qualification is carried out, limits the invitation to the tender to those who passed it.
1- على الجهة الحكومية إجراء تأهيل مسبق أو لاحق في الأعمال والمشتريات وفقاً لما توضحه اللائحة. 2- في حال إجراء تأهيل مسبق، تقتصر الدعوة للمشاركة في المنافسة على
- Article 20
The article requires pre- or post-qualification criteria to be objective and measurable, relate to technical, financial and administrative capabilities and contractual commitments, and be proportionate to the project.
يجب أن تكون معايير التأهيل المسبق أو اللاحق موضوعية وقابلة للقياس ومتعلقة بالقدرات الفنية والمالية والإدارية ومقدار الالتزامات التعاقدية للمتنافسين، وبما يتناسب
- Article 27
The article allows bids submitted jointly to be accepted in government tenders, and refers the regulation of this to the Implementing Regulations.
يجوز قبول العروض بالتضامن وفقاً لما توضحه اللائحة.
- Article 90
The Article requires government entities to contract directly with those authorized to work and bars brokerage, and a distributor or agent approved by the original producer is not a broker.
يكون التعاقد مع المصرح لهم بالعمل مباشـرة، ولا تجوز الوساطة في التعاقد، ولا يُعد وسيطاً الموزّع أو الوكيل المعتمد من المنتج الأصلي.
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.