Article 55 of the Saudi Government Tenders and Procurement Law
المادة 55 من نظام المنافسات والمشتريات الحكومية · الفصل الأول: صياغة العقود ومدد تنفيذها
The Article requires government contracts and their documents to be drafted in Arabic, allows another language alongside it with Arabic governing, and allows correspondence alone to suffice if the contract value does not exceed SAR 300,000.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تُصاغ العقود ووثائقها وملحقاتها باللغة العربية، ويجوز استخدام لغة أخرى إلى جانب العربية على أن تكون العربية هي المعتمَدة في تفسير العقد وتنفيذه وتحديد مواصفاته ومخططاته والمراسلات المتعلقة به.
2- للجهة الحكومية الاكتفاء بالمراسلات المتبادلة بدلاً من تحرير العقد إذا كانت قيمة العقد لا تزيد على (ثلاثمائة ألف) ريال.
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 55 explained in plain English
This Article sets two rules on the form of the government contract.
First: the Arabic language. Contracts, their documents and their annexes are drafted in Arabic. Another language may be used alongside Arabic, but on condition that Arabic governs in:
- Interpreting and performing the contract.
- Setting its specifications and drawings.
- Correspondence related to it.
So if a contract is written in Arabic and English, for example, and the two texts differ, the Arabic text governs. This is important for foreign companies or those working in another language, which should make sure the Arabic text is accurate because it is the one that governs.
Second: correspondence alone suffices. The government entity may content itself with exchanged correspondence instead of drawing up a contract if the contract value does not exceed SAR 300,000. This is an option for the entity and not an obligation on it, and it eases small contracts.
This Article relates to Article 54, which sets the authority to decide and delegate, and to Article 56, which sets the term of continuing service contracts at no more than 5 years unless the Ministry of Finance approves, for contracts whose nature requires it.
If you will sign a government contract in two languages and want to make sure the two texts agree, consult a lawyer who specializes in administrative cases and government contracts.
Practical example
A foreign engineering company concluded a contract with a government entity in Riyadh in Arabic and English versions. When the interpretation of one clause differed between the two versions, the Arabic text governed in interpretation and performance.
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 55 of the Saudi Government Tenders and Procurement Law
May a government contract be written in English?
Another language may be used alongside Arabic, provided Arabic governs interpretation, performance, specifications and correspondence.
Which text governs if the Arabic and foreign versions differ?
The Arabic text governs the interpretation and performance of the contract.
Must a contract be drawn up for every government engagement?
The government entity may content itself with exchanged correspondence instead of a contract if its value does not exceed SAR 300,000.
More articles on Concluding the Government Contract and the Final Guarantee
- Article 56
The Article caps continuing service contracts at five years unless the Ministry approves more, requires the term to fit the work, and requires performance and evaluation conditions allowing termination or reduced payments.
1- لا تتجاوز مدة عقود الخدمات ذات التنفيذ المستمر، كالصيانة والنظافة والتشغيل والإعاشة، (خمس) سنوات، وتجوز زيادتها في العقود التي تتطلب طبيعتها ذلك؛ بعد موافقة
- Article 57
The Article refers to the Implementing Regulations the determination of the types of contracts that government entities may use.
تحدد اللائحة أنواع العقود التي يجوز للجهات الحكومية استخدامها.
- Article 58
The Article allows government contracts to include clauses on transferring knowledge, training and operating skills to the employees of government entities.
يجوز تضمين العقود بنوداً تتعلق بنقل المعرفة والتدريب ومهارات التشغيل إلى موظفي الجهات الحكومية.
- Article 59
The contract is drawn up with the winning bidder after he is notified of the award and submits the final guarantee letter, and in public construction contracts the contractor must be enabled to start within 60 days unless the documents say otherwise.
1- يحرر العقد بين الجهة الحكومية وصاحب العرض الفائز بعد إبلاغه بقرار الترسية وتقديم خطاب الضمان النهائي. 2- يُمكّن المتعاقد معه في عقود الإنشاءات العامة من البد
- Article 60
The Article requires government entities to submit the contracts specified by the Regulations to the Ministry of Finance for review before signing; the Ministry reviews them within 15 working days or they are deemed approved.
1- تلتزم الجهات الحكومية بعرض عقودها -التي تحددها اللائحة- على الوزارة لمراجعتها قبل توقيعها، وعلى الوزارة مراجعة تلك العقود خلال (خمسة عشر) يوم عمل من تاريخ ور
- Article 61
The Article requires the winning bidder to submit a final guarantee of 5% of the contract value within 15 working days, and explains the consequence of delay, the cases exempt from it and how long it is kept.
1- يجب على من تتم الترسية عليه تقديم ضمان نهائي بنسبة (5%) من قيمة العقد، وذلك خلال (خمسة عشر) يوم عمل من تاريخ إبلاغه بالترسية. ويجوز للجهة الحكومية تمديد هذه
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.