Majid bin Abdullah Al-Hogail, Minister of Municipal, Rural Affairs and Housing, has approved the amendment of Executive Regulation of the Contractor Classification System, replacing the Executive Regulation of the Contractor Classification System, issued on 9/4/1443 AH.

This regulation replaces the Executive Regulation of the Contractor Classification System, which was issued on 9/4/1443 AH. In the following lines, we review the text of the executive regulations of the Contractor Classification System approved by Al-Hogail.

Executive Regulation of the Contractor Classification System

Article I:

The following words and phrases, wherever used in these Regulations, shall have the meanings indicated in front of them unless the context requires otherwise:

Wherever used in these Regulations, the following words and phrases shall have the meanings indicated in front of them unless the context requires otherwise:

<Kingdom: The Kingdom of Saudi Arabia.

System: Contractor Classification System. <Agency: Vice-Ministry for the Regulation of City Operators.

Article Two:

Subject to the provisions of Article (II) of the Law, all applications shall be decided after the completion of all classification requirements by the Contractor within the following period:

All applications shall be decided after the completion of all classification requirements by the Contractor within the following period:

1- Requests for classification (classification, reclassification, elevation, addition, deletion, modification) within a period not exceeding (60) working days.

2- Requests for classification (extension of classification) <2- Requests (extension of the validity of the classification certificate) for a period not exceeding (10) working days.

Article III:

The classification certificate shall be issued electronically and project owners shall verify the validity of the certificate submitted through the Ministry's website.

Article IV:

The fields, activities and degrees of classification shall be determined, amended and updated by a decision of the Minister in accordance with the following regulations:

First: The classification must be within the following businesses (construction and building, operation, maintenance and services, telecommunications and information technology, food and accommodation, exhibitions and conferences, real estate development).

First: The classification must be within the following businesses. <Secondly: The fields and activities of the classification should be in accordance with the National Directory of Economic Activities.

Article V:

The Contractor shall submit an application for classification including the following:

1- Classification forms.

Commercial register or its equivalent (valid) including the required areas (and activities) of the classification.

2. Statement of financial position (budget) and income statement (profit and loss account) for the last year certified by a licensed chartered accountant, provided that the financial statements issued in the Kingdom are deposited in Qawmah software.

3.

4- Organizational structures and governance, and the preparation and experience of administrative and technical cadres.

5- Project contracts <Project contracts (or equivalent in the absence of a contract) executed by the contractor or being executed inside or outside the Kingdom, provided that the project completion rate is not less than (50%) for implementation projects and (30%) for maintenance, operation and services projects. <6- Any other documents or data required to be submitted as a result of studying and analyzing the classification request. The above must be submitted in Arabic or translated by an authorized translation office, and all documents submitted from outside the Kingdom must be certified by the Saudi commercial attaché, consulate or embassy.

Article Six:

The Contractor's classification certificate shall be issued for the field (and activity) or fields (and activities) and the grade due, based on the available information and data and the points achieved by the calendar, and a certificate shall be issued for a period of two calendar years.

Article Seven:

The contractor shall be classified according to the requirements of the classification forms on the Ministry's website based on the following criteria and conditions:

1- Financial statements (budget), including net income, total income, net property and equipment, total assets, total cash and short-term investments, total current liabilities, total equity, total liabilities, diversification of income sources.

2- Technical staff.

2- Technical and administrative staff (within the Kingdom) and their professional experience, according to the requirements of the technical standards certificate for the activities subject to classification.

3- Previous projects information.

3- Information of previous and ongoing projects in terms of the total number, type and value of projects.

Article Eight:

The Contractor shall maintain commercial books and documents that prove the validity of the statement of financial position (budget) and income statement (profit and loss account) for the last year signed and certified by a chartered accountant licensed to practice the profession, and deposited in the Qawaim program, and the data and explanations that explain them, and the Contractor within the Kingdom must keep these books and records regularly and in the Arabic language and must comply with the conditions and controls contained in the Commercial Books Law.

These books and records shall be regular and in the Arabic language.

Article Nine:

<If the contractor wishes to be reclassified, he may submit a request to the Agency within (90) ninety days prior to the expiration of the certificate.

Article Ten:

The validity of the certificate shall be extended for (90) ninety days from the end date of the certificate and for one time only, at the request of the Contractor.

The validity of the certificate shall be extended for (90) ninety days from the end date of the certificate.

Article Eleven:

The Agency may cancel the Contractor's application for classification if the Contractor fails to fulfill the required classification requirements within ninety (90) days from the date of notification.

Article Twelve:

A classified contractor may request the amendment of his valid classification certificate by increasing, adding or deleting the grade in any field (and activity), in accordance with the requirements and classification criteria that support this and for the same period of validity of the certificate, and shall be classified in a new classification with the grade he deserves based on the available information and data, and the points achieved by the evaluation.

Article Thirteen:

If there is any legal change in the contractor's status in the commercial register or its equivalent that affects the classification (trade name, ownership, type, nationality, commercial register number and date, capital), the contractor shall apply to amend the classification certificate according to the commercial register or its equivalent, supporting his request with the information and data that support it.

Article Fourteen:

Classification services and their financial compensation shall be determined by a decision of the Minister in agreement with the Ministry of Finance.

Article XV:

The competent employees and inspectors have the right to access the data and documents related to the classified establishments and the applicant for classification, and the contractor must enable them to do so and facilitate their task, and they must maintain the confidentiality of the information and documents they see.

Article XV:

Article Sixteen:

Subject to the provisions of Article (14) of the Law, the inspectors shall, in order to carry out the tasks entrusted to them, do the following:

First: Conduct inspection visits to detect violations of the provisions of the Law and the Regulations, record them according to the table of classification of violations, and refer them to the competent committee.

First: Conduct inspection visits to detect violations of the provisions of the Law and the Regulations. <Secondly: Reviewing and examining records, information, papers, books, notebooks, files or any other document related to the classification. Thirdly: Obtaining copies of the necessary documents related to the violation.

Thirdly: Obtaining copies of the necessary documents related to the violation.

Fourth: Prepare reports on all their observations and observations related to the visits and submit them to the agency's specialists.

Article Seventeen:

Subject to the provisions of Article (16) of the Law, the objections of contractors to classification decisions and violations of the provisions of the Law and the Regulations shall be considered and adjudicated, and the penalties stipulated in Article (15) of the Law shall be approved by a competent committee as follows:

1- The committee shall be formed by a decision of the Minister, in which the committee chairman and members shall be specified, provided that the chairman is a specialist in Shari'ah or regulations. 2- The remuneration of the committee members and the supporting team shall be determined by a decision of the Minister, not exceeding (30,000) thirty thousand riyals per year for each member.

3- The committee shall be responsible for the work of the committee. <3- The Committee shall be competent to consider the objections of contractors to classification decisions, violations and penalties prescribed in accordance with Article 15(2) of the Law, through the reports and inspection control reports or any facts or violations referred to the Committee by any other party. The Chairman of the Committee may carry out actions that assist the Committee in accomplishing its tasks - unless they conflict with the laws and regulations - such as, but not limited to:

A- Requesting a briefing. Requesting any other party to provide any documents, information or data related to the violations before the committee.

A- Requesting any documents, information or data related to the violations before the committee. <Summon the inspector - the author of the seizure report - to hear his statements regarding the violation before the committee. <To seek the assistance of any specialists or experts it deems necessary to express its opinion on any matter before it. <If during the consideration of the violation, the committee discovers the existence of one or more facts that fall within the jurisdiction of another entity, it must refer it - through the head of the committee - to this entity, and the head of the committee may postpone the consideration of the violation until a statement is received from this entity. The committee shall issue its decisions by a majority vote of the members present, and in case of equality of votes, the president's vote shall be weighted, and they shall be implemented immediately unless an order is issued by the Administrative Court to suspend their implementation.

6- The committee shall issue its decisions by a majority vote of the members present. <The committee's decisions must be reasoned and include the basis for the decision, and respond to all the defenses raised by the violator, if any. The violator shall be notified of the committee's decision after it is issued and approved by the Minister.

8- The violator shall be informed of the committee's decision after it is issued and approved by the Minister. 9- The contractor has the right to object to the classification decisions before the committee within (60) sixty days from the date of notification of the decision.

9- The contractor has the right to object to the classification decisions before the committee.

10- The contractor may appeal to the Administrative Court within (60) sixty days from the date of notification of the decision. Article Eighteen:

<This regulation replaces the Executive Regulation of the Contractor Classification System issued by Ministerial Decision No. (4300274450) dated 9/4/1443 AH...