Article 51 of the Saudi Government Tenders and Procurement Law
المادة 51 من نظام المنافسات والمشتريات الحكومية · الفصل الرابع: فحص العروض وصلاحية التعاقد
The Article sets out five cases in which a tender is canceled: fundamental errors in the documents, an uncorrectable improper procedure, signs of corruption or collusion, all bids violating the documents, and the public interest.
Official text (Arabic)
This article has not been amended since the law was issued.
تلغى المنافسة في الحالات الآتية:
1- إذا كان في وثائق المنافسة أخطاء جوهرية لا يمكن تداركها.
2- إذا اتُخذ إجراء مخالف لأحكام النظام أو اللائحة لا يمكن تصحيحه.
3- إذا كان هناك مؤشرات واضحة على أن هناك احتيالاً أو ارتكاب أي من ممارسات الفساد، أو تواطؤاً بين المتنافسين أو أطراف لهم صلة بالمنافسة على نحو لا يمكن معه ترسية المنافسة بما يتفق مع أحكام النظام واللائحة.
4- إذا خالفت جميع العروض وثائق المنافسة.
5- إذا اقتضت المصلحة العامة ذلك.
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 51 explained in plain English
This Article sets out the cases in which a tender is canceled. Its wording "is canceled" means that cancellation takes place when one of these cases exists:
- Fundamental errors in the tender documents that cannot be remedied. A minor, correctable error is not enough.
- A procedure taken in violation of the Law or the Regulations that cannot be corrected.
- Clear indications of fraud, corruption or collusion among the bidders or parties connected with the tender, in a way that makes it impossible to award the tender in accordance with the Law and the Regulations.
- All bids violate the tender documents.
- The public interest requires cancellation.
Note that the first three cases are limited by an important qualification: the defect must be incapable of being remedied or corrected, or must prevent a sound award. The mere existence of an error or violation is not enough unless it reaches that level.
This Article relates to Article 50: if several bids are submitted and all are non-compliant with the tender documents except one, that bid is accepted only if its prices are similar to prevailing prices and with the approval of the head of the government entity. If all the bids violate the documents, that is the fourth case here.
On cancellation the bidders do not lose what they paid, since Article 52 provides that the bidders are refunded the value of the tender documents and the initial guarantees as the Regulations explain.
If a tender you took part in was canceled and you believe the reason for cancellation is not correct, consult a lawyer who specializes in administrative cases and government contracts.
Practical example
A government entity in Riyadh put out a tender to build a building, then clear indications emerged of collusion on prices among several bidders, in a way that made it impossible to award the tender in accordance with the Law. The tender was canceled, and the applicants were refunded the value of the documents and the initial guarantees.
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 51 of the Saudi Government Tenders and Procurement Law
When is a government tender canceled?
In five cases: fundamental errors in the documents that cannot be remedied; an improper procedure that cannot be corrected; clear indications of fraud, corruption or collusion that prevent a sound award; all bids violating the documents; or the public interest requiring it.
Is a tender canceled for any error in its documents?
No. The error must be fundamental and impossible to remedy.
Does a bidder get back the value of the documents when a tender is canceled?
Yes. Article 52 provides for refunding the value of the tender documents and the initial guarantees to the bidders as the Regulations explain.
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 46
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.
1- تفحص العروض وفقاً للمعايير المنصوص عليها في وثائق المنافسة، وتستبعد العروض المخالفة، وترد الضمانات الابتدائية لأصحابها. 2- في حال قدمت العروض في ملفين إلكترو
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.