Article 39 of the Saudi Government Tenders and Procurement Law
المادة 39 من نظام المنافسات والمشتريات الحكومية · الفصل الأول: تقديم العروض
The article sets bid validity at 90 days from opening, with the initial guarantee not returned to a bidder who withdraws during it, and allows extension by another 90 days with the guarantee also extended.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تكون مدة سريان العروض في المنافسات (تسعين) يوماً من التاريخ المحدد لفتح العروض، فإن سحب مقدم العرض عرضه خلال هذه المدة فلا يعاد إليه ضمانه الابتدائي.
2- يجوز للجهة الحكومية تمديد مدة سريان العروض لمدة (تسعين) يوماً أخرى، وعلى من يرغب من المتنافسين في الاستمرار في المنافسة تمديد مدة سريان ضمانه الابتدائي.
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 39 explained in plain English
This article governs the period during which a bid remains binding on its owner, and the consequences of withdrawing it.
First: the validity period. Bids are valid for 90 days, counted from the date set for opening the bids, not from the date they were submitted.
Second: the effect of withdrawing a bid. If a bidder withdraws his bid during this period, his initial guarantee is not returned to him. The purpose is for the competitor to bear the responsibility of committing to his bid, so he does not apply and then withdraw after learning the prices or when circumstances change.
Third: extension. The government entity may extend the validity period of bids by another 90 days. In this case, a competitor who wishes to continue in the tender must extend the validity of his initial guarantee.
Note that the text ties continuing in the tender to extending the guarantee, and uses the phrase "who wishes", but does not detail what follows from not extending, so the Implementing Regulations and other provisions must be consulted on that.
This article is linked to Article 40, which requires prices to be stated in the bid letter and bars amending them after submission except in negotiation cases the Law allows. Before you decide to withdraw your bid or not extend your guarantee, it is advisable to consult a lawyer who specializes in administrative disputes and government contracts.
Practical example
Ahmed's supply company submitted a bid in a government tender in Riyadh. Forty days after the date set for opening the bids, it wanted to withdraw its bid because its costs had risen. Because the withdrawal took place within the 90-day period, its initial guarantee will not be returned to it.
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 39 of the Saudi Government Tenders and Procurement Law
How long is a bid valid in government tenders?
90 days from the date set for opening the bids, and the entity may extend it by another 90 days.
What happens if I withdraw my bid before the validity period ends?
Your initial guarantee is not returned to you if you withdraw the bid during its validity period.
Must the initial guarantee be extended if the bid period is extended?
Yes. A competitor who wishes to continue in the tender must extend the validity of his initial guarantee.
More articles on Submitting Bids and the Initial Guarantee
- Article 37
The article requires bids to be submitted encrypted through the portal by the set deadline, allows sealed envelopes if the portal is technically unavailable, and requires the entity to announce the names of those who applied.
1- تقدم العروض مشفرة من خلال البوابة، وفق ما تحدده اللائحة. 2- تقدم العروض في الموعد المحدد لقبولها، ولا يجوز قبول العروض التي تقدم بخلاف ذلك. 3- يجوز قبول العر
- Article 38
The article allows the government entity to ask competitors to attach a sample of the required procurement to their bids.
للجهة الحكومية طلب إرفاق عينة من المشتريات المطلوبة.
- Article 40
The article requires total prices and any increase or reduction to be stated in the bid letter itself, disregards a reduction in a separate letter, and bars changing prices after submission except where negotiation is permitted.
1- يجب أن تحدد الأسعار الإجمالية وما يرد عليها من زيادة أو تخفيض في خطاب العرض، ولا يعتد بأي تخفيض يقدم بوساطة خطاب مستقل حتى لو كان مرافقاً للعرض. 2- لا يجوز ل
- Article 41
The article requires the competitor to submit an initial guarantee of 1% to 2% of the bid value with his bid, and a bid without the guarantee is excluded.
1- يُقدم المتنافس مع عرضه ضماناً ابتدائياً بنسبة تتراوح من (1%) إلى (2%) من قيمة العرض. ويستبعد العرض الذي لم يقدم معه الضمان. 2- تحدد اللائحة الأحكام المتعلقة
- Article 42
The article excepts five cases from the duty to provide the initial guarantee, including direct purchase, the competition, contracts among government entities, and contracting with local small and medium enterprises.
استثناء من حكم المادة (الحادية والأربعين) من النظام، لا يلزم تقديم الضمان الابتدائي في الحالات الآتية: 1- الشراء المباشر. 2- المسابقة. 3- تعاقدات الجهات الحكومي
- Article 63
The Article sets the accepted forms of guarantee in tenders and government contracts: a guarantee letter from a local bank, from a foreign bank through a local bank, or any form the Regulations specify.
تقبل الضمانات إذا كانت وفق أحد الأشكال الآتية: 1- خطاب ضمان بنكي من أحد البنوك المحلية. 2- خطاب ضمان بنكي من بنك خارج المملكة يقدم بوساطة أحد البنوك المحلية. 3-
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.