The following terms wherever mentioned in this Law shall have the meanings indicated opposite them unless the context requires otherwise:

• Ministry: Ministry of Municipalities and Housing.

• Minister: Minister of Municipalities and Housing.

• Law: Contractor Classification Law.

• Regulation: The Implementing Regulation of the Law.

• Classification: Evaluation of the contractor's capabilities: financial, technical, administrative, and executive; to place him in the appropriate field, activity, and grade in accordance with the provisions of the Law and the Regulation.

• Contractor: A natural or legal person licensed by law to undertake - 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 within a field.

• Grade: The result obtained by the contractor upon classification.

• Criterion: A set of elements used for classification.

The Ministry shall, in coordination with relevant agencies, classify contractors, and issue, amend, suspend, and cancel classification certificates in accordance with the provisions of this Law and the Regulations. Classification requests and classification amendment requests shall be decided within the period specified in the Regulations.

Government agencies and bodies, institutions, and entities having public legal personality may not accept any offer or bid for any project subject to classification unless the contractor is classified, and the project is within the field, activity, and grade under which said contractor is classified.

Classification fields, activities, and grades shall be determined and amended pursuant to a decision by the Minister in accordance with the controls specified in the Regulations, provided that the determination of classification fields and activities be based on the National Classification of Economic Activities.

The financial limits of each grade shall be determined and amended pursuant to a decision by the Minister upon agreement with the Minister of Finance and the Minister of Economy and Planning.

Assigning a contractor an appropriate grade in one classification field or activity, or more, shall be made according to the following criteria and conditions:

• 1. Financial capacity: Financial statements.

• 2. Technical, administrative, and execution capabilities: Organizational structures as well as administrative and technical personnel.

• 3. Number of projects as well as their types and values. And any other criteria or conditions specified in the Regulations.

A contractor may request the amendment of his classification certificate by applying for an upgrade or the addition or deletion of any field or activity, provided that his request is accompanied by supporting information and data, in accordance with the conditions specified in the Regulations.

The Minister or his designee shall issue a decision to classify a contractor by assigning him to one field or activity, or more, and to an appropriate grade based on available information and data. The contractor shall be issued a certificate to this effect for the term specified in the Regulations.

If two or more contractors jointly execute a project, each contractor must be classified in the field of said project, and at least one of them must be classified in the field and the grade required for the execution of the project, and the classification grade of the remaining contractors must be of the same grade required for the execution of the project or lower by one grade only.

If a legal change occurs in the contractor's status which affects his classification, the contractor must submit a request to amend the classification certificate in accordance with the cases specified in the Regulations.