Article 36 of the Saudi Government Tenders and Procurement Law
المادة 36 من نظام المنافسات والمشتريات الحكومية · الفصل الثامن: المسابقة
The article allows the government entity to contract for the best idea and design or other intellectual property rights by way of a competition, as the Implementing Regulations explain.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة الحكومية أن تتعاقد على أفضل فكرة وتصميم، أو غيرها من حقوق الملكية الفكرية، عن طريق أسلوب المسابقة، 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 36 explained in plain English
This article adds another method of government contracting: the competition. Instead of the government entity asking for price bids for something specified in advance, it puts out a competition in which participants compete with their ideas and designs, and then contracts for the best of them.
The scope of the competition according to the text includes:
- The best idea and design.
- Other intellectual property rights.
Using this method is optional for the entity. The article does not explain how the competition is announced, how entries are evaluated, or what the winner receives, but refers all that to the Implementing Regulations.
This method suits creative work in which quality and the idea matter more than price, such as designing a building or a logo or an innovative idea. It differs from the electronic reverse auction in Article 34, which rests on choosing the lowest prices, and from contracting for localizing industry in Article 35, which is handled by the Local Content and Government Procurement Authority.
Anyone who takes part in a government competition and needs to protect his rights in his idea or design is advised to consult a lawyer who specializes in administrative disputes and government contracts or a lawyer in commercial and intellectual property matters.
Practical example
A municipality in one of the cities announced a competition to choose the best design for the facade of a public park. An engineering office in Jeddah took part with its design, and after evaluation as the Implementing Regulations explain, the municipality contracted with the owner of the winning design.
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 36 of the Saudi Government Tenders and Procurement Law
What is meant by the competition method in government procurement?
A method by which the government entity contracts for the best idea and design or other intellectual property rights.
Does the article explain how the competition is evaluated?
No. The article refers the details of the competition method to the Implementing Regulations of the Law.
Can a competition cover intellectual property rights other than designs?
Yes. The text covers the best idea and design or other intellectual property rights.
More articles on Framework Agreements and Reverse Auctions
- Article 14
The article sets the powers of the unified procurement entity, including consolidating common procurement, concluding framework agreements, reviewing feasibility studies, preparing forms and training.
دون إخلال باختصاص الهيئة العامة للصناعات العسكرية، وتنفيذاً لأحكام النظام؛ تختص الجهة المختصة بالشراء الموحد بما يلي: 1- تحديد الأعمال والمشتريات التي تحتاج إلي
- Article 15
The article requires entities to buy what is on the unified procurement lists through its framework agreements unless it approves otherwise, and to submit feasibility studies and tender documents to it before putting them out, with specific exceptions.
1- لا يجوز للجهة الحكومية تأمين المشتريات أو تنفيذ الأعمال الواردة في القوائم التي تعدها الجهة المختصة بالشراء الموحد إلا من خلال الاتفاقيات الإطارية التي أبرمت
- Article 33
The article allows the government entity to conclude a framework agreement with the winner of the tender if quantities, the volume of works or services, or the time of execution cannot be determined.
للجهة الحكومية إبرام اتفاقية إطارية مع من رست عليه المنافسة تتضمن الأحكام التي سيجري في إطارها تنفيذ العقد، وذلك في الحالات التي يتعذر فيها تحديد كميات الأصناف
- Article 34
The article allows the government entity to use the electronic reverse auction on conditions: detailed specifications, a competitive market, bids received and ranked automatically through the portal, set dates, and information given to competitors.
للجهة الحكومية استخدام أسلوب المزايدة العكسية الإلكترونية وفقاً لما توضحه اللائحة، مع مراعاة الآتي: 1- أن تعد الجهة الحكومية مواصفات فنية مفصلة. 2- أن يكون هناك
- Article 35
The article allows the Local Content and Government Procurement Authority, on its own initiative or at a government entity's request and with the Ministry of Finance's approval, to contract for localizing an industry and transferring knowledge.
للهيئة من تلقاء نفسها أو بناءً على طلب من إحدى الجهات الحكومية -بعد موافقة الوزارة- التعاقد على توطين صناعة ونقل معرفة وفقاً للضوابط التي تحددها اللائحة.
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.