Article 54 of the Saudi Government Tenders and Procurement Law
المادة 54 من نظام المنافسات والمشتريات الحكومية · الفصل السادس: الصلاحيات
The Article gives the head of the government entity the authority to decide tenders, additional work, cancellation, contract termination, direct purchase and sale of movables, and sets the delegation ceilings.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تكون صلاحية البت في المنافسات لتنفيذ الأعمال وتأمين المشتريات والتكليف بالأعمال الإضافية لرئيس الجهة الحكومية، وله التفويض في الحالتين الآتيتين:
أ- البت في المنافسات لتنفيذ الأعمال وتأمين المشتريات بما لا يزيد على (عشرة ملايين) ريال.
ب- التكليف بالأعمال الإضافية بما لا يزيد على (خمسة ملايين) ريال للمشروع الواحد أو (10%) من تكلفة المشروع؛ أيهما أقل.
2- تكون صلاحية إلغاء المنافسة لرئيس الجهة الحكومية، وله التفويض في ذلك.
3- تكون صلاحية إنهاء العقود لرئيس الجهة الحكومية، وله التفويض في ذلك.
4- تكون صلاحية البت في الشراء المباشر لرئيس الجهة الحكومية، وله التفويض بما لا يزيد على (ثلاثة ملايين) ريال.
5- تكون صلاحية البت والترسية في بيع المنقولات لرئيس الجهة الحكومية، وله التفويض في ذلك.
6- يراعى أن يكون التفويض متدرجاً بحسب مسؤولية الشخص المفوض.
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 54 explained in plain English
This Article sets out who holds the decision at the most important stages of government contracting. The rule is that the authority belongs to the head of the government entity (the Minister, president, governor or top official of the entity under Article 1), with different delegation limits:
- Deciding tenders and commissioning additional work: belongs to the head of the entity, who may delegate in two cases:
- Deciding tenders for amounts not exceeding SAR 10,000,000.
- Commissioning additional work not exceeding SAR 5,000,000 per project or 10% of the project cost, whichever is less.
- Canceling a tender: belongs to the head of the entity, who may delegate.
- Terminating contracts: belongs to the head of the entity, who may delegate.
- Deciding direct purchase: belongs to the head of the entity, who may delegate for amounts not exceeding SAR 3,000,000.
- Deciding and awarding the sale of movables: belongs to the head of the entity, who may delegate.
Paragraph six requires that delegation be graduated according to the responsibility of the delegate, so a lower-ranking employee is not given an authority beyond the level of his responsibility.
In practice this means that whatever exceeds the stated ceilings remains with the head of the entity himself. This Article relates to Article 53, which bars approving the award and signing the contract during the standstill period, and to Article 55, which regulates the language of contracts and allows correspondence alone to suffice if the contract value does not exceed SAR 300,000.
If you doubt that an award or cancellation decision was issued by someone who lacks the authority, consult a lawyer who specializes in administrative cases and government contracts.
Practical example
A government entity in Riyadh wants to commission a contractor to do additional work on a project costing SAR 30,000,000. Ten percent of it equals SAR 3,000,000, which is less than SAR 5,000,000, so delegation for this work may not exceed SAR 3,000,000, and anything above that remains with the head of the entity.
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 54 of the Saudi Government Tenders and Procurement Law
Who has the authority to decide government tenders?
The head of the government entity, who may delegate deciding tenders for amounts not exceeding SAR 10 million.
What is the delegation limit for direct purchase?
The head of the entity may delegate deciding direct purchase for amounts not exceeding SAR 3 million.
What is the delegation limit for additional work?
Not more than SAR 5 million per project or 10% of the project cost, whichever is less.
Who may cancel a tender or terminate a contract?
The head of the government entity, who may delegate it.
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.