The following words and phrases wherever they appear in this Regulation shall have the meanings indicated opposite them unless the context requires otherwise:
Kingdom:The Kingdom of Saudi Arabia.
Ministry:Ministry of Municipal and Housing Affairs.
Minister:Minister of Municipal and Housing Affairs.
Agency:Agency of the Ministry for Regulating City Operators.
Law:Contractor Classification Law.
Decisions: Decisions issued by the Minister of Municipal and Housing Affairs in implementation of this Regulation.
Field: The type of work in which the contractor is classified.
Activity: A type of sub-work within a field.
Grade: The result obtained by the contractor upon classification.
Criterion: A set of elements used for classification.

Subject to the provisions of Article (2) of the Law, all claims shall be decided upon after the contractor completes all classification requirements within the following periods:
1- Classification requests (classification, reclassification, raising, addition or deletion, modification) within a period not exceeding sixty (60) working days.
2- Requests for (extension of the classification certificate validity) within a period not exceeding ten (10) working days.

The classification certificate is issued electronically, and the project-owning entities must verify the authenticity of the certificate submitted through the Ministry's electronic website.

The fields, activities, and classification grades shall be determined and amended by a decision of the Minister in accordance with the following regulations:
First: The fields and activities of classification must be within the works of implementation and installation, or maintenance and repair, or operation and services, or activities of a technical or direct operational nature. Activities limited to supply works or administrative consulting only are excluded.
Second: The fields and activities of classification must be in accordance with the National Guide for Economic Activities and updated periodically.

• The contractor submits the classification application including the following:

• 1- Classification forms.

• 2- The commercial register or its equivalent, valid and including the required classification fields and activities.

• 3- The financial position statement (balance sheet) and income statement (profit and loss account), consolidated or for the branch if classification is desired for the branch, for the last year, not less than six (6) months and not more than eighteen (18) months from the date of registration in the commercial register, certified and attested by a licensed certified public accountant authorized to practice the profession, and the financial statements issued in the Kingdom must be deposited with the Saudi Business Center (Financial Statements Program), except for the following cases:

  • A- A foreign company branch inside the Kingdom that has not passed eighteen (18) months from its establishment date, the contractor submits the financial position statement (balance sheet) and income statement (profit and loss account) for the last year of the parent company, certified and attested by a licensed certified public accountant authorized to practice the profession.

  • B- An establishment wholly or partially owned by a government entity or an establishment owned by another establishment or with a controlling percentage for other companies, and not more than eighteen (18) months have passed since its establishment date and its first fiscal year is not completed, the financial position statement, income statement, and capital are accepted provided they are certified and attested by a licensed certified public accountant authorized to practice the profession.

• 4- Organizational structures and governance mechanisms in addition to the numbers and experiences of administrative and technical staff.

• 5- Project contracts (or their equivalent in case no contract is concluded) that the contractor has executed or is executing inside or outside the Kingdom, provided that the project completion rate is not less than fifty percent (50%) for execution projects, and thirty percent (30%) for maintenance, operation, and service projects.

• 6- The project owner's approval for the contractor to waive the contract, or part of it, or to subcontract its execution in government projects.

• 7- Disclosure by the main contractor in government projects executed and under execution of subcontractors' contracts and their values.

• 8- Collective accommodation license for individuals for establishments with a workforce exceeding twenty (20) workers or more in the fields specified by a decision of the Minister.

• 9- The commercial license of the establishment.

• 10- Submission of a written undertaking from the foreign parent establishment to financially, technically, and administratively support the company branch inside the Kingdom if classification is desired based on the data and experiences of the establishment in the country of establishment, to ensure the good performance of the company branch and its fulfillment of its obligations.

• 11- Any other documents or data required to be submitted as a result of the study and analysis of the classification application.

• The above must be submitted in Arabic or translated into it by an accredited translation office, provided that all documents submitted from outside the Kingdom are certified by the Saudi Commercial Attaché, Consulate, or Saudi Embassy.

A contractor classification certificate in the field(s) and activity(ies) and the deserved grade is issued based on the available information and data and the points achieved by the evaluation, and a certificate is granted for a period of two Gregorian years.

• Projects are not counted as executive experience for the contractor in the following cases:

• 1- If the project contract signing date is before the date of the Commercial Register.

• 2- If the project's field does not fall within the classification fields.

• 3- If the project was withdrawn from the contractor.

• 4- If it is proven that the contractor had no role in executing the project.

• 5- If the contractor did not provide approval for subcontracting, or if the financial limit of the contracted works exceeds the financial limit of the classification grade, only the equivalent of the classification grade is counted.

• 6- If the contractor did not provide the documents or data required to be submitted as a result of the study, analysis, and inspection of the main office and the site.

• If the contractor wishes to divide a project according to divisible fields, he must submit a request to that effect.

• The division procedure taken shall be final, in accordance with the following conditions:

• 1- The project must be completed and within the scope of execution works.

• 2- The project must be within the Kingdom.

• 3- The value of the project to be divided must not be less than (600) million Riyals.

• 4- The parts of the project must be separable, and the value of the part to be separated must not be less than (75) seventy-five million Riyals.