Article 46 of the Saudi Government Tenders and Procurement Law
المادة 46 من نظام المنافسات والمشتريات الحكومية · الفصل الرابع: فحص العروض وصلاحية التعاقد
The Article requires bids to be examined against the tender documents' criteria, non-compliant bids excluded and their guarantees returned; where bids are split, technical bids are examined first, then the financial bids of accepted technical bids.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تفحص العروض وفقاً للمعايير المنصوص عليها في وثائق المنافسة، وتستبعد العروض المخالفة، وترد الضمانات الابتدائية لأصحابها.
2- في حال قدمت العروض في ملفين إلكترونيين أو في مظروفين مختومين، فيجب فحص العروض الفنية دون المالية، وتستبعد العروض الفنية غير المقبولة وترد لهم العروض المالية دون فتحها مع الضمانات الابتدائية لأصحابها.
3- تفحص اللجنة العروض المالية للعروض الفنية المقبولة، وتقدم توصياتها على أفضل العروض، وفقاً لمعايير التقييم المعلن عنها في وثائق المنافسة.
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 46 explained in plain English
This Article sets out how the bid examination committee (formed under Article 45) examines the bids submitted. It contains three rules:
1- Examination under the tender documents: Bids are examined against the criteria set out in the tender documents, so no criteria that were not announced may be added. Non-compliant bids are excluded, and the initial guarantees are returned to their owners.
2- Separating technical from financial: If bids are submitted in two electronic files or two sealed envelopes, the technical bids must be examined without the financial ones first. For a bidder whose technical bid is not accepted:
- The technical bid is excluded.
- The financial bid is returned unopened.
- The initial guarantee is returned.
3- Examining the financial bids: The committee examines the financial bids of the accepted technical bids only, and makes its recommendations on the best bids under the evaluation criteria announced in the tender documents.
The purpose of this order is to judge technical quality separately from price, so that the assessment of competence is not influenced by knowing the prices. After this examination the committee may negotiate with the holder of the best bid in the two cases mentioned in Article 47, such as when its price is clearly higher than market prices or exceeds the amounts approved for the project.
If your bid was excluded and you believe the exclusion was not based on the criteria in the tender documents, consult a lawyer who specializes in administrative cases and government contracts.
Practical example
A company in Riyadh submitted its bid in two envelopes, technical and financial. After the technical bids were examined, its technical bid was found unacceptable under the criteria in the tender documents, so it was excluded, and the financial envelope was returned to the company unopened together with its initial guarantee.
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 46 of the Saudi Government Tenders and Procurement Law
On what basis are bids examined in government tenders?
Under the criteria set out in the tender documents, and the evaluation criteria announced in them.
What happens to my financial bid if my technical bid is rejected?
Your financial bid is returned to you unopened, together with your initial guarantee.
Is the initial guarantee returned for an excluded bid?
Yes. Non-compliant bids are excluded and the initial guarantees are returned to their owners.
More articles on Examining Bids and Award
- Article 24
The article requires the government entity to set in the tender documents the criteria for evaluating, comparing and accepting bids, as the Implementing Regulations explain.
تحدد الجهة الحكومية في وثائق المنافسة معايير تقييم ومقارنة وقبول العروض وفقاً لما توضحه اللائحة.
- Article 25
The article requires non-price evaluation criteria to be objective, proportionate to the nature of the works and procurement, and quantifiable as far as practically possible.
يجب أن تكون معايير التقييم غير السعرية موضوعية وتتناسب مع طبيعة الأعمال والمشتريات المراد طرحها، وأن تكون -بالقدر الممكن عملياً- قابلة للتحديد الكمي.
- Article 43
The article provides for forming one or more bid-opening committees by decision of the head of the government entity or his delegate, as the Implementing Regulations explain.
تكوّن بقرار من رئيس الجهة الحكومية أو من يفوضه لجنة أو أكثر لفتح العروض، وفقاً لما توضحه اللائحة.
- Article 44
The article requires bids to be opened in the presence of all committee members when the receiving period ends, with minutes prepared, lets bidders attend, and requires referral to the examination committee within 3 days.
1- تفتح العروض بحضور جميع أعضاء اللجنة في موعد انتهاء مدة تلقي العروض، ويعَد محضر بذلك، وفي الحالات التي تتطلب تقديم عرض فني مستقل عن العرض المالي، تفتح العروض
- Article 45
The article governs forming the bid-examination committee, its tasks, the unified procurement entity's participation and recording its recommendations in minutes, and bars combining its chairmanship with award authority or with the opening committee.
1- تكوّن لجنة أو أكثر بقرار من رئيس الجهة الحكومية أو من يفوضه لفحص العروض، وفقاً لما توضحه اللائحة. وتتولى هذه اللجنة فحص العروض وتقديم توصياتها في الترسية على
- Article 47
The Article allows the bid examination committee to negotiate with the best bidder and then the next ones if the price is clearly above market prices or exceeds the approved amounts, and explains when the tender is canceled.
للجنة فحص العروض التفاوض مع صاحب أفضل عرض ثم مع من يليه من المتنافسين في الحالتين الآتيتين: 1- إذا ارتفع سعر أفضل عرض عن الأسعار السائدة في السوق بشكل ظاهر، تحد
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.