TENDERS REGULATIONS AND RULES
FOR IMPLEMENTATION

There is no central tenders board and every government agency is empowered to enter into contracts. The Kingdom supplemented the existing tenders regulations through Royal Decree No. M/14 issued on 7 Rabi II, 1397 H. (March 27, 1977). These regulations contain 14 Articles and govern bid submission, methods of procurement and performance, contract award, bid award and contracting authority, contract conditions, advance payments, delay fine, contract forms, etc. Article 14 stipulates that these regulations shall cancel and supersede all contradictory rules. Further, Rules for Implementation of Tenders Regulations were issued under ministerial Resolution No. 2131/97 dated 5 Jumada I 1397 H. (April 23, 1977). These rules contain 40 Articles and govern advertisement of tenders, manner in which they are submitted, bid evaluation process, time for acceptance of contract award, etc.

Council of Ministers Resolution No. 124 dated 29/5/1403 H. (March 14, 1983) requires that not less than 30 percent of contracts of "public works contracts" that require the performance of works, such as construction contracts generally, as well as maintenance and operations contracts, won by a foreign contractor or any Saudi-foreign joint venture prime contractor (with less than 51% Saudi capital), must be sub-contracted to contractors who are at least 51 percent Saudi owned and sponsor their own workers.

For details, please contact the Ministry of Finance and national Economy

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