Article 59 of the Saudi Government Tenders and Procurement Law
المادة 59 من نظام المنافسات والمشتريات الحكومية · الفصل الأول: صياغة العقود ومدد تنفيذها
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 البدء في تنفيذ العقد خلال (ستين) يوماً من تاريخ إبلاغه بقرار الترسية، مالم تنص وثائق المنافسة على غير 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 59 explained in plain English
This Article regulates the stage after award, and contains two provisions:
First: when is the contract drawn up? The contract is drawn up between the government entity and the winning bidder after two things:
- He is notified of the award decision.
- He submits the final guarantee letter.
So submitting the final guarantee is a condition that precedes drawing up the contract, and this Article does not state its percentage or its deadline.
Second: starting in public construction contracts. The contractor in public construction contracts must be enabled to start performing the contract within 60 days of the date he is notified of the award decision, unless the tender documents provide otherwise.
This provision protects the contractor from the entity's delay in enabling him to perform, since it sets a fixed period running from notification of the award. But it is a fallback provision: if the tender documents set a different period or arrangement, what is in the documents governs. It is also specific to public construction contracts under the text.
Before some contracts are signed they may have to be submitted to the Ministry of Finance; Article 60 requires entities to submit the contracts the Regulations specify to the Ministry for review before signing, within 15 working days, failing which they are deemed approved. Article 58 allows contracts to include clauses on knowledge transfer and training.
If the entity is late in enabling you to start performance, consult a lawyer who specializes in administrative cases and government contracts.
Practical example
A construction company in Riyadh was awarded a tender to build a school. It was notified of the award decision and submitted the final guarantee letter, and the contract was drawn up. The tender documents did not provide a different period, so the company had to be enabled to start performance within 60 days of the date it was notified of the award.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 59 of Government Tenders and Procurement Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Administrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 59 of the Saudi Government Tenders and Procurement Law
When is the contract drawn up with the winner of a government tender?
After he is notified of the award decision and submits the final guarantee letter.
Within how many days must the contractor be enabled to start performance?
Within 60 days of the date he is notified of the award decision in public construction contracts, unless the tender documents provide otherwise.
Does the 60-day period apply to all contracts?
The text specifies it for public construction contracts, and the tender documents may provide otherwise.
More articles on Concluding the Government Contract and the Final Guarantee
- Article 55
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.
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 مواصفا
- 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 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.