Article 69 of the Saudi Government Tenders and Procurement Law
المادة 69 من نظام المنافسات والمشتريات الحكومية · الفصل الرابع: تعديل الأسعار وأوامر التغيير
The Article allows the government entity, within its actual needs, to issue change orders increasing the contract by up to 10% of its value or reducing it by up to 20%, as the Regulations explain.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة الحكومية -في حدود احتياجاتها الفعلية- إصدار أوامر تغيير بالزيادة في العقد بما لا يتجاوز (10%) من قيمته، ولها إصدار أوامر تغيير بالتخفيض بما لا يتجاوز (20%) من قيمته، وفقاً لما توضحه اللائحة.
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 69 explained in plain English
This Article gives the government entity the authority to change the size of the contract after it is concluded through change orders, and sets clear limits on that authority.
The two kinds of change orders:
- A change order increasing the contract: not exceeding 10% of the contract value.
- A change order reducing the contract: not exceeding 20% of the contract value.
The general restriction: That this is within the actual needs of the government entity; change orders are not used to add work the entity does not actually need.
The authority here belongs to the government entity ("the government entity may issue"), which decides to issue the change order within these limits. The Article refers the details of application and its procedures to the Implementing Regulations, and the text does not state here how added work is priced or the effect of a reduction on the contract term.
A change order differs from the price amendment regulated by Article 68; a change order affects the volume of work or purchases, while price amendment affects the price of the items themselves in limited cases such as a change in the prices of main materials or in fees and taxes. Assignment of the contract to another party is regulated by Article 70 and requires written approval from the entity and the Ministry.
If a contractor believes a change order exceeded the set limits, he can consult a lawyer who specializes in government contracts.
Practical example
A government entity in Riyadh contracted with a supplier to supply office furniture worth SAR 1,000,000. It then actually needed additional quantities, so it may issue a change order increasing the contract by up to SAR 100,000 (10%). If its need had fallen, it could reduce by up to SAR 200,000 (20%), as the Regulations explain.
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 69 of the Saudi Government Tenders and Procurement Law
What is the maximum increase of a government contract by a change order?
The increase does not exceed 10% of the contract value.
May the government entity reduce the contract after it is signed?
Yes. It may issue a change order reducing the contract by no more than 20% of the contract value, within its actual needs.
What is the difference between a change order and a price amendment?
A change order increases or reduces the size of the contract, while price amendment is regulated by Article 68 in specific cases.
More articles on Payments, Price Adjustment and Change Orders
- Article 64
Contract values in government contracts are paid in Saudi riyals, and the entity may specify one or more other currencies in the tender documents with the Ministry of Finance's prior approval.
تدفع قيمة العقود بالريال السعودي، ويجوز أن تحدد الجهة الحكومية في وثائق المنافسة عملة أخرى أو أكثر على أن يكون ذلك بموافقة مسبقة من الوزارة.
- Article 65
The total value of a government contract includes all the costs of performing it, including fees and taxes, and neither they nor taxes on the contractor's profits or employees' incomes may be waived or paid for them except by a special legal provision.
تكون القيمة الإجمالية للعقد شــاملة جميع تكاليف تنفيذه وفقاً لشروطه، بما في ذلك قيمة الرسوم والضرائب التي يدفعها المتعاقد، ولا يجوز الإعفاء منها أو إعفاء أرباح
- Article 66
The Article allows the government entity to pay its contractor an advance payment against a bank guarantee equal to its value, as the Regulations explain.
للجهة الحكومية أن تدفع للمتعاقد معها دفعة مقدمة مقابل ضمان بنكي مساوٍ لهذه القيمة، وفقاً لما توضحه اللائحة.
- Article 67
The Article refers the method of paying the contractor's dues from the government entity to what the Implementing Regulations of the Law explain.
تصرف مستحقات المتعاقد مع الجهة الحكومية وفقاً لما توضحه اللائحة.
- Article 68
The Article bars amending the prices of contracts and framework agreements up or down except in three specific cases, and refers the conditions and procedures to the Regulations.
لا يجوز تعديل أسعار العقود أو الاتفاقيات الإطارية بالزيادة أو النقص إلا في الحالات الآتية: 1- تغير أسعار المواد أو الخدمات الرئيسة الداخلة في بنود المنافسة والت
- Article 86
The Article creates a committee, by decision of the Minister of Finance, competent over grievances of bidders and contractors and price adjustment requests; its decisions bind the entity, and the complainant provides a guarantee.
1- تكوّن بقرار من الوزير لجنة أو أكثر من المختصين، لا يقل عددهم عن خمسة ويحدد فيه رئيس اللجنة ونائبه، ويُنص في القرار على عضو احتياطي أو أكثر. ويعاد تشكيل هذه ا
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.