Implementing Regulation of the Contractor Classification Law - 1443

Article 1

The words and phrases contained in this Regulation shall have the meanings specified in the Law unless the context requires otherwise:
The Kingdom:
 The Kingdom of Saudi Arabia.
The Agency: The Ministry's Agency for Regulating City Operators' Services.
The Decisions: The decisions issued by the Minister of Municipal and Rural Affairs and Housing, in implementation of this Regulation.

Article 2

  • In consideration of the provisions of Article (2) of the Law, all claims shall be decided after the contractor has completed all classification requirements within the following periods:

    • 1- Classification requests (classification, re-classification, elevation or addition or deletion, modification) within a period not exceeding (60) working days.

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

Article 3

The classification certificate is issued electronically, and it is the responsibility of the project owners to verify the validity of the certificate submitted through the Ministry's official website.

Article 4

  • The fields, activities, and classification degrees are determined and amended by a decision from the Minister according to the following criteria:

    • First: The classification must be within the following activities: (Construction and Building, Operation and Maintenance Services, Communications and Information Technology, Catering and Subsistence, Exhibitions and Conferences, Real Estate Development).

    • Second: The fields and activities of the classification must be in accordance with the National Guide for Economic Activities.

Article 5

  • The contractor submits the classification request including the following:

    • 1- Classification forms.

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

    • 3- The financial position statement (budget) and the income statement (profit and loss account) for the last year, approved and certified by a licensed accountant authorized to practice the profession, provided that the financial statements issued in the Kingdom are deposited in the financial statements program.

    • 4- Organizational structures and governance, and the qualifications and experiences of the administrative and technical staff.

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

    • 6- Any documents or other data that must be submitted as a result of studying and analyzing the classification request.

    • The above must be submitted in Arabic or translated into Arabic by a certified translation office, and all documents submitted from outside the Kingdom must be certified by the Saudi commercial attaché or the consulate or the Saudi embassy.

Article 6

The contractor classification certificate is issued in the field (and activity) or fields (and activities) and the appropriate grade, based on the information and data available and the points achieved through the evaluation. A certificate is granted for a duration of one Gregorian year.

Article 7

  • The contractor shall, according to the requirements of the classification models on the ministry's website, comply with 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, and diversification of income sources.

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

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

Article 8

The contractor must maintain commercial books and documents that prove the accuracy of the statement of financial position (Budget) and the income statement (Profit and Loss Account) for the last year, signed and certified by a licensed accountant authorized to practice the profession, and filed in the financial statements program, along with the data and explanations that clarify them. The contractor within the Kingdom must ensure that these books and records are organized and in the Arabic language, adhering to the conditions and regulations stipulated in the Commercial Books System.

Article 9

If the contractor wishes to reclassify, he may submit a request to the agency within (90) ninety days before the expiration of the attesting period.

Article 10

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