Contractors Classification Law

Purpose and scope

• Regulates the classification of contractors by field, activity and grade, carried out by the ministry (Article 2), based on the national guide to economic activities (Article 4).

Key rules, rights and obligations

• Government bodies and public authorities may award or accept a bid for a project subject to classification only from a contractor classified in its field, activity and grade (Article 3).
• A contractor is classified in the grade it merits in one or more fields under set criteria (Article 6), by decision of the minister or a delegate (Article 8).

Violations, penalties and common problems

• Penalties: downgrading, suspension with a ban on renewal of up to five years, or cancellation, under a table of violations issued by the minister (Article 15).
• Common problem: bidding for a project outside the contractor's field or grade, which leads to the bid being excluded.

Procedures and key deadlines

• A committee of at least three members, including a Sharia or legal specialist, hears contractors' objections to classification decisions and violations, and issues reasoned decisions (Article 16).
• The regulation sets the committee's procedures and objection deadlines (Article 16).

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.