<The Cabinet approved the Contractor Classification System, which includes 19 articles, and the Umm Al-Qura newspaper today published details of the 19 articles of the new system as follows:
Article 1:
The following words, wherever used in this system, shall have the meanings indicated in front of them unless the context requires otherwise:
Ministry: Ministry of Municipal and Rural Affairs and Housing.
Minister: Minister of Municipal and Rural Affairs and Housing.
System: Contractor Classification System.
Regulation: The executive regulation of the system.
Rating: Evaluating the capabilities of the contractor: Financial, technical, administrative and executive capabilities; to place it in the field, activity and grade due in accordance with the provisions of the system and the regulation.
Contractor: A natural or legal person authorized by law to carry out - individually or jointly - the execution of a contract in one of the fields specified in the regulation.
Field: The type of work in which the contractor is classified.
Activity: A type of sub-work in a field.
Score: The score a contractor gets when being categorized.
Criterion: A set of elements used for classification.
Second Article:
The Ministry, in coordination with the relevant authorities, shall undertake classification, issue classification certificates, modify, suspend and cancel them, in accordance with the provisions of the Law and Regulations, provided that the request for classification or modification shall be decided within a period specified by the Regulations.
Article Three:
Government entities, bodies, institutions and agencies with public legal personality may not award or accept any offer or tender for any project subject to classification unless the contractor is classified, and the project is located in the field, activity and grade to which the contractor has been classified.
Article Four:
The fields, activities and degrees of classification shall be determined and amended by a decision of the Minister, in accordance with the controls specified in the regulation, provided that the fields and activities of classification shall be based on what is stated in the National Directory of Economic Activities.<Article 5:
The financial limits for each grade shall be determined and amended by a decision of the Minister after agreement with the Minister of Finance and the Minister of Economy and Planning.
Article 6:
The contractor shall be classified in the grade he deserves in one or more areas or activities of classification, according to the following criteria and conditions:
1- Financial capacity: Financial statements.
2- Technical, administrative and executive capacity: Organizational structures, administrative and technical staff.
3- Total number, type and value of projects.
And any other criteria or conditions specified by the regulation.
Article Seven:
The contractor may request to amend his classification certificate by raising, adding or deleting any field (or activity), provided that he supports his request with the information and data that support it, in accordance with the conditions specified by the regulation.
Article Eight:
The Minister or his delegate shall issue a decision to classify the contractor in the field(s) or activity(s), and the grade he deserves, based on the available information and data, and grant a certificate accordingly within the period specified in the Regulation.
Article Nine:
If two or more contractors collaborate in the implementation of a project, each of them must be classified in the field of implementation of the project and at least one of them must be classified in the field and grade required for its implementation, and the degree of classification of the remaining collaborators must be the same or only one degree lower than the degree required for the implementation of the project.
Article Ten:
If there is any legal change in the status of the contractor that affects his classification, he must apply to amend the classification certificate in accordance with the cases specified by the regulation.
Article Eleven:
A contractor licensed to work in accordance with the foreign investment system shall be classified according to the procedures applicable to the classification of Saudi contractors. The Council of Ministers may exempt it according to the rules it sets for that purpose.
Article Twelve:
The Ministry shall charge a financial remuneration for the services it provides in accordance with the provisions of the Law, provided that these services and the financial remuneration for them shall be determined in agreement with the Ministry of Finance.<Article Thirteen:
Government entities, bodies, institutions and agencies with public legal personality shall provide the Ministry with the information, data and notes it requires on contractors for classification purposes, as well as the projects implemented by contractors or under implementation, as specified in the regulation.
Article Fourteen:
Inspectors - named by a decision issued by the Minister - shall jointly or individually control and prove violations of the provisions of the Law and Regulations, access records and information, and obtain copies of the necessary documents. Without prejudice to any harsher penalty stipulated in any other law, whoever violates the provisions of the Law or the Regulation shall be punished with one or more of the following penalties:
A- Reducing the classification grade.
B- Suspending the classification, and preventing its renewal for a period not exceeding (five) years.
C- Cancellation of the classification.
2- The Minister shall, by his decision, issue a classification table for violations and determine the penalties within the limits stipulated in the Law, taking into account the nature and gravity of each violation, and the aggravating and mitigating circumstances.
Article Sixteen:
1- A committee (or more) consisting of at least three members, including a legal or regulatory specialist, shall consider the objections of contractors to classification decisions and violations of the provisions of the Law and Regulations, adjudicate them and approve the penalties stipulated in Article (Fifteen) of the Law, in addition to a committee (or more) composed of (three) members.
2- The committee stipulated in paragraph (1) of this article shall be formed by a decision of the Minister for a period of (three) years, renewable, and the decision shall specify who shall preside over it, provided that he is a specialist in Sharia or regulations, and its decisions shall be issued by majority, and its decisions shall be reasoned.
3- The rules and procedures for the work of the committee - stipulated in paragraph (1) of this Article - and the supporting team, and the remuneration of their members shall be determined by the regulation.
Article Seventeen:
The Minister shall issue the regulations within (ninety) days from the date of publication of the Law in the Official Gazette.
Article Eighteen:
The Law shall be published in the Official Gazette and shall enter into force (ninety) days after the date of publication.
Article Nineteen:
The Law replaces the Contractor Classification Law issued by Royal Decree No. M/18 dated 20/3/1427H, and repeals all provisions that conflict with it
Article 1:
The following words, wherever used in this system, shall have the meanings indicated in front of them unless the context requires otherwise:
Ministry: Ministry of Municipal and Rural Affairs and Housing.
Minister: Minister of Municipal and Rural Affairs and Housing.
System: Contractor Classification System.
Regulation: The executive regulation of the system.
Rating: Evaluating the capabilities of the contractor: Financial, technical, administrative and executive capabilities; to place it in the field, activity and grade due in accordance with the provisions of the system and the regulation.
Contractor: A natural or legal person authorized by law to carry out - individually or jointly - the execution of a contract in one of the fields specified in the regulation.
Field: The type of work in which the contractor is classified.
Activity: A type of sub-work in a field.
Score: The score a contractor gets when being categorized.
Criterion: A set of elements used for classification.
Second Article:
The Ministry, in coordination with the relevant authorities, shall undertake classification, issue classification certificates, modify, suspend and cancel them, in accordance with the provisions of the Law and Regulations, provided that the request for classification or modification shall be decided within a period specified by the Regulations.
Article Three:
Government entities, bodies, institutions and agencies with public legal personality may not award or accept any offer or tender for any project subject to classification unless the contractor is classified, and the project is located in the field, activity and grade to which the contractor has been classified.
Article Four:
The fields, activities and degrees of classification shall be determined and amended by a decision of the Minister, in accordance with the controls specified in the regulation, provided that the fields and activities of classification shall be based on what is stated in the National Directory of Economic Activities.<Article 5:
The financial limits for each grade shall be determined and amended by a decision of the Minister after agreement with the Minister of Finance and the Minister of Economy and Planning.
Article 6:
The contractor shall be classified in the grade he deserves in one or more areas or activities of classification, according to the following criteria and conditions:
1- Financial capacity: Financial statements.
2- Technical, administrative and executive capacity: Organizational structures, administrative and technical staff.
3- Total number, type and value of projects.
And any other criteria or conditions specified by the regulation.
Article Seven:
The contractor may request to amend his classification certificate by raising, adding or deleting any field (or activity), provided that he supports his request with the information and data that support it, in accordance with the conditions specified by the regulation.
Article Eight:
The Minister or his delegate shall issue a decision to classify the contractor in the field(s) or activity(s), and the grade he deserves, based on the available information and data, and grant a certificate accordingly within the period specified in the Regulation.
Article Nine:
If two or more contractors collaborate in the implementation of a project, each of them must be classified in the field of implementation of the project and at least one of them must be classified in the field and grade required for its implementation, and the degree of classification of the remaining collaborators must be the same or only one degree lower than the degree required for the implementation of the project.
Article Ten:
If there is any legal change in the status of the contractor that affects his classification, he must apply to amend the classification certificate in accordance with the cases specified by the regulation.
Article Eleven:
A contractor licensed to work in accordance with the foreign investment system shall be classified according to the procedures applicable to the classification of Saudi contractors. The Council of Ministers may exempt it according to the rules it sets for that purpose.
Article Twelve:
The Ministry shall charge a financial remuneration for the services it provides in accordance with the provisions of the Law, provided that these services and the financial remuneration for them shall be determined in agreement with the Ministry of Finance.<Article Thirteen:
Government entities, bodies, institutions and agencies with public legal personality shall provide the Ministry with the information, data and notes it requires on contractors for classification purposes, as well as the projects implemented by contractors or under implementation, as specified in the regulation.
Article Fourteen:
Inspectors - named by a decision issued by the Minister - shall jointly or individually control and prove violations of the provisions of the Law and Regulations, access records and information, and obtain copies of the necessary documents. Without prejudice to any harsher penalty stipulated in any other law, whoever violates the provisions of the Law or the Regulation shall be punished with one or more of the following penalties:
A- Reducing the classification grade.
B- Suspending the classification, and preventing its renewal for a period not exceeding (five) years.
C- Cancellation of the classification.
2- The Minister shall, by his decision, issue a classification table for violations and determine the penalties within the limits stipulated in the Law, taking into account the nature and gravity of each violation, and the aggravating and mitigating circumstances.
Article Sixteen:
1- A committee (or more) consisting of at least three members, including a legal or regulatory specialist, shall consider the objections of contractors to classification decisions and violations of the provisions of the Law and Regulations, adjudicate them and approve the penalties stipulated in Article (Fifteen) of the Law, in addition to a committee (or more) composed of (three) members.
2- The committee stipulated in paragraph (1) of this article shall be formed by a decision of the Minister for a period of (three) years, renewable, and the decision shall specify who shall preside over it, provided that he is a specialist in Sharia or regulations, and its decisions shall be issued by majority, and its decisions shall be reasoned.
3- The rules and procedures for the work of the committee - stipulated in paragraph (1) of this Article - and the supporting team, and the remuneration of their members shall be determined by the regulation.
Article Seventeen:
The Minister shall issue the regulations within (ninety) days from the date of publication of the Law in the Official Gazette.
Article Eighteen:
The Law shall be published in the Official Gazette and shall enter into force (ninety) days after the date of publication.
Article Nineteen:
The Law replaces the Contractor Classification Law issued by Royal Decree No. M/18 dated 20/3/1427H, and repeals all provisions that conflict with it
