• The terms and phrases mentioned below, wherever they appear in this Regulation, shall have the meanings specified next to them, unless the context requires otherwise:

  • The Authority: Saudi Contractors Authority.

  • The Regulation: Regulation of the Saudi Contractors Authority.

  • The President: President of the supervising entity.

  • The Supervising Entity: The entity designated by a decree from the President of the Council of Ministers based on a proposal from the Council of Economic and Development Affairs.

  • The Contractor: A natural or legal person licensed to carry out - either individually or in partnership with others - a contract in one of the fields of contracting.

  • The General Assembly: The General Assembly of the Authority.

  • The Council: Board of Directors of the Authority.

  • The Member: Member of the Council.

  • The General Secretary: General Secretary of the Authority.

  • The Regulation: Internal Regulation of the Authority.

• A professional non-profit organization shall be established in accordance with the provisions of this regulation, called the (Saudi Contractors Authority), which enjoys legal personality and independent financial liability, headquartered in the city of Riyadh, and may establish branches within the regions of the Kingdom. It operates under the supervision of the supervising authority, which includes the following:

  • 1- Reviewing the regulations related to the organization before their approval by the General Assembly, ensuring their compliance with its provisions and objectives, and requesting amendments if they contain provisions that do not align with the provisions and objectives of the organization. If not amended accordingly, the supervising authority shall take the necessary actions regarding them, including suspending their implementation.

  • 2- Providing the supervising authority with copies of the final accounts of the organization before presenting them to the General Assembly, and after their approval. In case there are remarks on those accounts, the supervising authority must take the necessary actions within (thirty) days from the date of receiving the copies.

  • 3- Providing the supervising authority with copies of decisions related to financial and administrative matters - whenever requested - and directing the organization to suspend the implementation of any of them if they contain items that do not comply with the provisions of the regulation and its bylaws, within (thirty) days from the date of receiving the copies.

• The authority aims to develop the contracting sector in the Kingdom and raise the level of employees in this profession, and in particular - without conflicting with related regulations - the following:

• 1- Establishing the foundations and standards related to the contracting sector and enhancing and developing them.

• 2- Collecting and publishing information and statistics related to the contracting sector.

• 3- Setting indicators for information related to the contracting sector, such as prices of building materials and prevailing contractor wages in the market.

• 4- Preparing model contract formats for the contracting sector.

• 5- Preparing studies and research related to the contracting sector.

• 6- Providing relevant authorities with data, information, and updates related to the contracting sector.

• 7- Working to support the national and foreign contracting sector in the Kingdom.

• 8- Informing contractors of the regulations, decisions, and instructions related to the contracting sector.

• 9- Working to identify the obstacles facing the contracting sector and contractors; in preparation for discussing them with the competent government authorities and developing appropriate solutions that serve the sector.

• 10- Working on qualifying specialized arbitrators by providing courses related to the contracting sector.

• 11- Working as much as possible to resolve disputes that arise between contractors, amicably if the parties to the dispute agree to it.

• 12- Informing contractors of new investment opportunities in the contracting sector.

• 13- Encouraging contractors and urging them to benefit from local and foreign expertise houses.

• 14- Encouraging investment in joint projects in the contracting sector.

• 15- Organizing courses and holding conferences, seminars, and exhibitions related to the contracting sector, and participating in them.

• 16- Providing technical consultations in its field of specialization, according to the regulations approved by the council.

• 17- Providing recommendations and suggestions to government authorities when enacting and reviewing regulations related to the contracting sector when requested.

• 18- Representing the contracting sector in international committees, bodies, unions, and associations related to it.

• 19- Encouraging contractors to employ Saudis in the contracting sector.

• 20- Creating an electronic register that includes interactive data specifying information about the contractor, his specialization, and previous works, enabling the public to determine the level of satisfaction with the contractor's performance, and it is updated periodically.

• 21- Providing training and development programs for contracting establishments as well as for specialists and employees in these establishments, ensuring the development of these establishments and raising the level of their employees.

Membership in the Authority shall be as follows:

1. Primary membership: Primary membership shall be held by Saudi contractors who are licensed to engage in the construction profession upon payment of the annual membership fees.

2. Associate membership: Associate membership shall be held by non-Saudi contractors in the Kingdom who are licensed to engage in the construction profession as well as parties who are interested in the construction sector in the Kingdom, upon payment of the annual membership fees.

3. Honorary membership: Honorary membership shall be granted by the Board to persons with outstanding contributions that serve the Authority’s objectives.

The Authority shall have a general assembly comprising all the primary members who have paid the annual membership fees.

• 1- The General Assembly shall hold its ordinary meeting within ninety days from the beginning of each financial year of the Authority.

• 2- The meeting of the General Assembly shall be chaired by the Chairman of the Council or by a member of the Council designated by him.

• 3- The meeting of the General Assembly shall not be valid unless attended by at least half of its members. If the quorum is not met, a second meeting shall be called to be held within a period of no less than fifteen days and no more than sixty days from the date of the first meeting, and in this case, the meeting shall be valid with those present. The General Assembly may hold extraordinary meetings in accordance with what is specified in the Regulation.

• The Chairman may appoint someone to represent him in attending the meetings of the General Assembly whenever necessary.

• 4- Decisions of the General Assembly shall be issued by a majority of the votes of those present, and in the event of a tie, the vote of the Chairman of the meeting shall be decisive.

• 5- The Chairman of the Board shall send out invitations for the meetings of the General Assembly at least thirty days prior to the date of the meeting, specifying the time, place, and agenda of the meeting.

• 6- The Chairman may call the General Assembly for an extraordinary meeting in the event of any urgent matter that necessitates it.

• The General Assembly is responsible for the following:

  • 1- Approval of the regulation.

  • 2- Approval of administrative and financial regulations.

  • 3- Approval of the regulations and criteria for accepting membership applications.

  • 4- Approval of membership subscription fees and any financial compensation charged by the authority, and the payment mechanism.

  • 5- Election of the council members as stipulated in subparagraph (A) of paragraph (1) of Article (Ninth) of the statute.

  • 6- Approval of the authority's annual budget and approval of its final accounts.

  • 7- Appointment of an auditor for the authority's accounts and determination of his remuneration, except that the council appoints the auditor for the first term and determines his remuneration.
    8- Approval of the work plan submitted by the council and adoption of the authority's annual report.

  • 9- Approval of the authority's investment policy.

  • 10- Determination of the council members' remuneration, according to what is specified in the regulation.

• 1- The authority shall have a Board of Directors composed as follows:

  • A- (Five) core members elected by the General Assembly. The regulation specifies the necessary procedures for this and the requirements for candidates.

  • B- (Four) members representing government bodies, as follows:

    • 1- A representative from the Ministry of Municipal and Rural Affairs.

    • 2- A representative from the Ministry of Commerce.

    • 3- A representative from the Ministry of Finance.

    • A representative from the Ministry of Human Resources and Social Development.

  • C- A member with expertise and specialization appointed by a decision from the Council of Ministers, based on a nomination from the Chairman of the Council.

• 2- The members of the council mentioned in subparagraph (A) of paragraph (1) of this article shall, in the first session of the council, select a chairman and a deputy from among its members by secret ballot.

• 3- If a position of a member of the council mentioned in subparagraph (A) of paragraph (1) of this article becomes vacant, for any of the cases mentioned in Article (Fourteen) of the statute, it shall be filled by the elected member who received the most votes, and the membership term in this case shall be until the end of the remaining term of the council.

• 4- It is required that no council member is related by first-degree kinship to any other member of the council.

• The membership term in the council is (three) years, renewable once.