Article 88 of the Saudi Government Tenders and Procurement Law
المادة 88 من نظام المنافسات والمشتريات الحكومية · الباب السادس: النظر في الشكاوى والمخالفات والتظلمات
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.
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- تتولى هذه اللجنة النظر في مخالفات المتنافسين والمتعاقد معهم لأحكام النظام والعقود المبرمة معهم.
3- 3- مع عدم الإخلال بأي عقوبة ينص عليها أي نظام آخر؛ للجنة أن تصدر في حق المخالف قراراً بمنعه من التعامل مع الجهات الحكومية مدة لا تتجاوز خمس سنوات، أو بتخفيض تصنيفه -إن وجد- أو بهما معاً.
4- يجوز للجنة بدلاً من تطبيق عقوبة المنع في حق المخالف؛ أن تفرض عليه غرامة مالية بنسبة لا تتجاوز (10%) من القيمة الإجمالية لعرضه.
5- تكون قرارات اللجنة نافذة من تاريخ صدورها، ما لم يصدر أمر من المحكمة الإدارية بوقف تنفيذها.
6- يجوز التظلم من قرارات اللجنة أمام المحكمة الإدارية، خلال (ستين) يوماً من تاريخ العلم بالقرار.
7- ينشر ملخص القرار على نفقة المخالف في إحدى الصحف المحلية أو في أي وسيلة أخرى مناسبة، في الحالتين التاليتين:
أ- إذا مضت المدة المشار إليها في الفقرة (6) من هذه المادة، دون أن يتظلم صاحب الشأن أمام المحكمة الإدارية.
ب- إذا صدر حكماً نهائياً من المحكمة الإدارية بتأييد قرار اللجنة.
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 88 explained in plain English
This Article creates the Violations Committee, and sets out the penalties it may impose and how to object to them.
Formation: One or more committees of specialists, not fewer than 5 in number, are formed by decision of the Minister (the Minister of Finance); the decision names its chair, deputy chair and one or more alternate members. It is re-formed every 3 years, with renewal permitted, and the Minister sets its working rules and the remuneration of its members.
Competence: Hearing violations by bidders and contractors of the provisions of the Law and of the contracts concluded with them.
Penalties (without prejudice to any penalty in another law):
- A ban on dealing with government entities for a period not exceeding 5 years, or a lower classification if one exists, or both.
- Or, in place of the ban, a fine not exceeding 10% of the total value of the violator's bid.
Enforceability and challenge: The committee's decisions are enforceable from the date they are issued unless the Administrative Court orders their suspension, and may be challenged before the Administrative Court within 60 days of learning of the decision.
Publication: A summary of the decision is published at the violator's expense in a local newspaper or any suitable means in two cases: the 60-day period passes without a challenge, or a final judgment of the Administrative Court upholds the decision.
Given the seriousness of these penalties and their deadlines, a person against whom a decision has been issued would do well to consult a lawyer specialized in administrative cases and government contracts at once.
Practical example
The Violations Committee issued a decision banning an establishment in Al-Ahsa from dealing with government entities for two years. The decision is enforceable from the date it was issued unless the Administrative Court orders its suspension, and the establishment may challenge it before that court within 60 days of learning of it. If it does not challenge, a summary of the decision is published at its expense.
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 88 of the Saudi Government Tenders and Procurement Law
What is the maximum period a contractor can be banned from dealing with government entities?
Not more than 5 years, and its classification may be lowered, if one exists, together with the ban or in place of it.
Can a fine be paid instead of the ban on dealing?
In place of the ban, the committee may impose a fine not exceeding 10% of the total value of the violator's bid.
How long is there to challenge a Violations Committee decision?
60 days from the date of learning of the decision, before the Administrative Court.
When is the violation decision published at the violator's expense?
If 60 days pass without a challenge, or a final judgment of the Administrative Court upholds the decision.
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 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
- 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 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.