Article 86 of the Saudi Government Tenders and Procurement Law
المادة 86 من نظام المنافسات والمشتريات الحكومية · الباب السادس: النظر في الشكاوى والمخالفات والتظلمات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 اللجنة كل ثلاث سنوات، ويجوز تجديد العضوية فيها. ويصدر الوزير قراراً يحدد قواعد عمل اللجنة وإجراءاتها، ويحدد مكافآت أعضائها وسكرتيرها.
2- تختص اللجنة بما يلي:
أ- النظر في تظلمات المتنافسين من قرار الترسية أو من أي قرار أو إجراء تتخذه الجهة الحكومية قبل قرار الترسية.
ب- النظر في تظلمات المتعاقد معهم من قرارات تقييم الأداء.
ج- النظر في طلبات تعديل الأسعار وفقاً لأحكام المادة (الثامنة والستون) من النظام.
3- تكون قرارات اللجنة ملزمة للجهة الحكومية.
4- يقدم المتظلم ضماناً يساوي نصف قيمة الضمان الابتدائي؛ يعاد إليه إذا ثبت صحة التظلم.
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 86 explained in plain English
This Article creates the Grievance Committee.
Formation: One or more committees of specialists, not fewer than 5 in number, are formed by decision of the Minister (the Minister of Finance), and the decision names its chair, deputy chair and one or more alternate members. It is re-formed every 3 years, and membership may be renewed. The Minister issues a decision on its working rules and procedures and the remuneration of its members and secretary.
Its competences:
- grievances of bidders against the award decision or any decision or procedure taken by the government entity before it.
- grievances of contractors against performance evaluation decisions.
- requests for price adjustment under Article 68, which allows adjustment only where the prices of main materials or services change, customs tariffs, fees or taxes are amended, or unforeseen material difficulties arise during performance.
Force of its decisions: The committee's decisions are binding on the government entity.
Grievance guarantee: The complainant provides a guarantee equal to half the value of the initial guarantee, which is returned if the grievance is found valid.
Article 87 sets out the grievance route: it begins before the government entity, and may then be taken to this committee within 3 days of the complainant being notified that its grievance was rejected or the period for deciding it passing without a decision. A person who wishes to file a grievance would do well to consult a lawyer specialized in government contracts and administrative cases to observe the deadlines.
Practical example
A technology company in Riyadh believed its bid was wrongly excluded from a government tender before the award, and filed a grievance with the entity, which was rejected. It took its grievance to the Grievance Committee and provided a guarantee equal to half its initial guarantee. If its grievance is found valid, the guarantee is returned to it, and the committee's decision binds 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 86 of the Saudi Government Tenders and Procurement Law
What is the competence of the Grievance Committee?
It hears bidders' grievances against the award decision or what precedes it, contractors' grievances against performance evaluation, and price adjustment requests under Article 68.
Are the Grievance Committee's decisions binding on the government entity?
Yes, the Article states that the committee's decisions are binding on the government entity.
What is the grievance guarantee in government tenders?
It equals half the value of the initial guarantee, and is returned to the complainant if the grievance is found valid.
Articles this article refers to
More articles on Grievances and Violations in Tenders
- Article 53
After the award decision is issued and announced, the Article requires the government entity to observe a standstill period of 5 to 10 working days in which the award may not be approved or the contract signed, so bidders can file a complaint.
تلتزم الجهة الحكومية بعد صدور قرار الترسية والإعلان عنه، بفترة توقف لا تقل عن (خمسة) أيام عمل ولا تزيد على (عشرة) أيام عمل؛ لا يجوز خلالها اعتماد الترسية وتوقيع
- Article 78
The Article requires the final guarantee to be forfeited when a contract is terminated for reasons specified in Article 76, preserves the entity's right to compensation, and refers the decision to the Article 88 committee to consider a ban.
يجب عند إنهاء العقد بموجب الفقرة (1) أو الفقرة (2 / أ) أو الفقرة (2 / ج) من المادة (السادسة والسبعين) من النظام، مصادرة الضمان النهائي وذلك دون إخلال بحق الجهة
- Article 87
The Article regulates a bidder's right to file a grievance before the government entity and then before the Article 86 committee, the deadlines for deciding, and the effect of a grievance on completing contracting.
1- لكل متنافس الحق في التظلم أمام الجهة الحكومية من أي قرار اتخذته، قبل قرار الترسية، وذلك خلال (خمسة) أيام عمل من تاريخ صدور القرار، وله كذلك التظلم أمام الجهة
- Article 88
The Article creates a committee to hear violations by bidders and contractors, which may ban a violator for up to 5 years, lower its classification or fine it up to 10%, with the right to challenge before the Administrative Court.
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
- Article 94
The Article provides that violating any provision of the Law exposes the responsible employee to disciplinary accountability under the applicable regulations, and lets the government entity bring a civil action where appropriate.
كل مخالفة لأي حكم من أحكام النظام تعرِّض الموظف المسؤول عنها للمساءلة التأديبية، وفقاً لأحكام نظام تأديب الموظفين ونظام العمل وغيرها من الأحكام الجزائية الأخرى
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.