The Ministry of Municipal and Rural Affairs has issued a new mechanism for classifying construction companies and engineering firms, which will take effect on 1/11/1436 AH with the aim of establishing a sufficient pool of consultants to meet market needs and ensure fair competition in the construction and engineering consulting sectors. The mechanism was developed and approved by a committee comprising representatives from the Ministries of Municipal and Rural Affairs, Commerce and Industry, and the Saudi Council of Engineers.

The Ministry, represented by the Contractors Classification Agency, has developed an automated program for classifying construction companies and engineering firms. This program includes classification forms, procedures for obtaining classification, criteria for the forms, and the financial thresholds for classification grades,in addition to conducting a pilot classification to test the program.

Engineer Abdullah bin Mohammed Al-Mutairi, Undersecretary of the Ministry of Municipal and Rural Affairs for Contractor Classification, stated in a statement today that

Engineer Abdullah bin Muhammad Al-Mutairi, Undersecretary of the Ministry of Municipal and Rural Affairs for Contractor Classification, stated that the Ministry has circulated the classification mechanism approved by ministerial decree and will begin accepting applications for classification under this mechanism on 1 /11/1436 AH as a first “pilot” phase lasting six months. Based on the results of this phase, the final criteria for determining the standards and financial thresholds for each classification level will be established, followed by a second phase to implement the classification models and issue classification certificates to engineering firms and offices, making classification mandatory for engineering firms and offices wishing to participate in government tenders starting June 1, 1437 AH.