Article 20 of the Saudi Government Tenders and Procurement Law
المادة 20 من نظام المنافسات والمشتريات الحكومية · الفصل الثامن: شروط التعامل وتأهيل المتنافسين
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.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب أن تكون معايير التأهيل المسبق أو اللاحق موضوعية وقابلة للقياس ومتعلقة بالقدرات الفنية والمالية والإدارية ومقدار الالتزامات التعاقدية للمتنافسين، وبما يتناسب مع طبيعة المشروع أو العمل وحجمه وقيمته.
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 20 explained in plain English
This article sets the controls on qualification criteria, whether qualification is pre or post, which under Article 1 are the entity's verification that the necessary qualifications and capabilities exist, before bids are submitted or after the best bid is selected and before award.
The criteria must be:
- Objective: Not based on personal considerations or favoring a particular party.
- Measurable: So they can be verified clearly.
- Related to four aspects: Technical capabilities, financial capabilities, administrative capabilities, and the extent of competitors' contractual commitments.
- Proportionate: To the nature, size and value of the project or work.
What does proportionality mean? The criteria required for a small project should not be at the level required for a huge one; the criterion is measured by the nature, size and value of the work.
And the extent of contractual commitments: The entity also looks at the size of the contractual commitments a competitor already has, not only at his capabilities.
Relation to other articles: Article 19 requires pre- or post-qualification and limits the invitation, in pre-qualification, to those who passed; this article controls the criteria by which passing is judged. Tender documents and their content are regulated by Article 21.
Anyone who believes a tender's qualification criteria do not meet these controls may consult a lawyer who specializes in government contracts and administrative disputes.
Practical example
A government entity puts out a simple maintenance project for a school in Hail of limited value, and required experience in carrying out projects worth hundreds of millions as a qualification condition. This criterion raises the question of its proportionality to the nature, size and value of the work, which this article requires.
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 20 of the Saudi Government Tenders and Procurement Law
What criteria are allowed in qualifying competitors?
Objective and measurable criteria, relating to technical, financial and administrative capabilities and the extent of contractual commitments, and proportionate to the nature, size and value of the project.
Must qualification criteria be proportionate to the project's size?
Yes. The article provides that the criteria must be proportionate to the nature, size and value of the project or work.
Do these controls also apply to post-qualification?
Yes. The article covers the criteria for pre- or post-qualification.
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 18
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.
يجب أن تتوافر في الأشخاص الذين تتعامل معهم الجهات الحكومية الشروط اللازمة لتنفيذ الأعمال وتأمين المشتريات وفقاً لما توضحه اللائحة.
- 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 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.