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Chapter Four: Concluding and implementing contracts 9/7/2022 8:24 AM

Ministry of Finance

-Knowledge Center - The New Government Competition and Procurement System - Chapter Four: Needles Or contracts and their implementation

Chapter Four: Concluding and implementing

contracts

Chapter
Four:
Concluding and implementing contracts

Chapter
One:
Drafting contracts and their

implementation periods Article Fifty-Five:

1- Contracts, their documents and annexes shall be drafted in Arabic, and another language may be used. In addition to Arabic, provided that Arabic is the one

used in interpreting the contract. Implementing it and determining its specifications, plans and correspondence related to it. 2- The government agency may

suffice with mutual correspondence instead of drawing up the contract if The value of the contract was not more than (three hundred thousand) riyals.

Article Fifty-Six:
1The duration of contracts for services with continuous implementation, such as maintenance, cleaning, operation, and... For subsistence, (five)

years, and it may be increased in contracts whose nature requires this. K; after the approval of the Ministry.

2 In all contracts, the period specified for project implementation must be proportional to the size of the project. of the works and their nature,

and with the annual appropriations allocated to be spent on the project.

3Service contracts with continuous implementation include conditions related to the level of performance and For continuous evaluation; So the government agency may

terminate the contract or reduce payments if performance is not satisfactory. Yes, the regulations explain what is necessary to implement the provision of this paragraph.

Article Fifty-Seven:
The regulation specifies the types of contracts that government agencies may

use. Article Fifty-Eight:

Contracts may include clauses related to the transfer of knowledge, training, and
marketing skills. Changed to employees of government

agencies. Article Fifty-Nine:

1The contract is drawn up between the government agency and the owner of the winning bid after being informed of the decision. confidentiality and submitting the final

letter of guarantee.

2 The contracting party in public construction contracts can begin implementing the contract. D within (sixty) days from the date of his notification of the

award decision, unless the regulatory documents stipulate Otherwise, it's okay.

Article Sixty:
1- Government agencies are obligated to present their contracts - which are specified by the regulations - to the Ministry for I reviewed them before signing them,

and the Ministry must review those contracts within (five) (t) One working day from the date it was received. If the Ministry does not respond during this period, it

will be returned. An exception is made from the provisions of this article. Entities that do not have appropriations in the state’s general budget.

2- The regulations specify the controls for applying this article.

Chapter Two:
Final guarantee
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 Chapter Four: Concluding and implementing contracts 9/7/2022 8:24 AM

1 The person to whom the award is awarded must provide a final guarantee of (5%) of the contract value, within (fifteen) working days from the date of

notification of the award. The government entity may extend this period for a similar period. The warranty will not be returned to him. The initial offer is

negotiated with the next offer, in accordance with the provisions of the system, and it is permissible to increase The guarantee rate after the Minister’s

approval.

2The offer holder - if it is a local small and medium enterprise - is committed to paying A financial fine to the government agency equal to the value of

the initial guarantee, if he withdraws the offer. e before the expiry of the validity period of the offers, or if the final guarantee is not provided in the event

that the offer is made. Bad for him. In the event that (sixty) days have passed from the date of withdrawal of the offer, or from the date of expiry of the

Providing the final guarantee without paying the prescribed financial penalty shall be punished with a ban. This includes dealing with government

agencies for a period of one year.

3 It is not necessary to provide a final guarantee in the following cases:

A- If the value of the works and purchases does not exceed (one hundred thousand) riyals. B-

Contracting between the two parties Government agencies.

C- Contracting with an institution, civil society association, or non-

profit entity.

D- Contracting with the companies in which the state possesses a percentage of

no less than) 51%(from its capital.

E - If the contractor supplies all the items that he was commissioned to supply, and The government entity finally accepted it within the period specified for

depositing the final guarantee, or the Supplying a part of it, and this part was accepted and its price was sufficient to cover the value of the warranty. Final, provided

that what covers the value of the guarantee is not disbursed until after The contracting party fulfills his obligations.

F- If the contractor is assigned to perform additional work.

4 The final guarantee must be kept until the contracting party fulfills his obligations. You will receive the project finally, in accordance with the terms and

conditions of the contract.

Article sixty-two:
The final guarantee in service contracts with continuous implementation is reduced annually according to In all cases, the guarantee

shall not be less than (5%) of the work being carried out. The value of the remaining work from the contract.

Article sixty-three:
Guarantees are accepted if they are in one of the following forms: 1- A

letter of bank guarantee from one of the following: Local banks.

2- A letter of bank guarantee from a bank outside the Kingdom,

presented through one of the authorized banks. Why? 3-

Any other form specified by the regulation.

The regulations clarify the terms, conditions and models of

guarantees.

Chapter Three:

Financial consideration

Article sixty-four:
The value of contracts shall be paid in Saudi riyals, and the government entity may be specified in the contract documents. Competing with one or more other

currencies, provided that this is with prior approval from the Ministry.

Article Sixty-Five:
The total value
employees fromoftax
theorcontract
pay it onshall
theirinclude
behalf,all costs as
except of excluded
implementing
by a itspecial
in accordance
statutorywith ‫ﱢ‬.
its terms and conditions. , including the value of fees
provision.

Article sixty-six:
and taxes paid by the contractor, and it is not permissible to The profits of contractors with the government entity or the income of their

The government agency may pay its contractor an advance payment in exchange for a bank guarantee. equal to this value, according to

Clear the list.

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 Chapter Four: Concluding and implementing contracts 9/7/2022 8:24 AM

Article sixty-
seven:
Disbursement of the contractor’s dues with the government agency in accordance with what the regulations indicate.

Chapter Four:

Modifying prices and

change orders Article sixty-

eight:

The prices of contracts or framework agreements may not be amended by an increase or decrease except in the event of The following

mechanisms: 1- Change in the prices of main materials or services included in the terms of the competition, which Determined by the

regulation. 2- Amending the customs tariff, fees, or taxes.

3- If financial difficulties occur during the implementation of the contract that could not have been expected.

The regulations clarify the conditions and procedures necessary to implement the provision of this article.

Article sixty-nine:

The government agency may - within the limits of its actual needs - issue change orders to increase contract by no more than 10% of its value, and it

may issue change orders for a reduction by no more than It exceeds (20%) of its value, according to what the regulations indicate.

Chapter Five:
Waiver of the Contract and

Subcontracting Article Seventy:

The contractee may not assign the contract or part
of it to a contractor, contractor, or supplier. Leave
only after obtaining written approval

from the government agency and the ministry,

explaining the reasons. The terms and conditions
of waiver of the contract or part of it.

Article Seventy-One:

1The contractor may not subcontract with another contractor, contractor, or supplier without Obtain written approval from the

government agency, and the regulations specify the terms of the contract. The interior and its controls.

2The government agency may submit payments directly to the contractor, contractor, or supplier from the tons, and the regulations specify the conditions

and controls for this. Chapter

3 The and
Fines contract
contracting partyextensions
Six:
- in all cases - shall be jointly responsible with the contractor or contractor. A pledge or sub-supplier to implement the
contract
Article Seventy-Two:
in accordance with its terms.
If the contractor is late in implementing the contract beyond the specified date; A delay fine shall be imposed on him not to exceed (6%) of the value of the supply

contract, and not to exceed (20%) of the value of other contracts, and these percentages may be increased with prior approval from the Minister Yes, this increase

must be explained to the competitors before submitting their offers.

Article Seventy-Three:

If the contractor for services contracts with continuous implementation fails to implement the Zamata; A fine not exceeding 20% of the contract value will be

imposed on him, with the value of the works completed being deducted. However, this percentage may be increased with the prior approval of the Minister,

provided that Explain this increase to competitors before submitting their offers.

Article Seventy-Four:
The contract may be extended and exempted from the fine in the following cases:

1If the contractor is assigned additional work, provided that the added period is consistent with This includes the size of the work, its nature, and the

date it was commissioned.

2 If the annual financial allocations for the project are not sufficient to complete the work on time The specified one.

- If the delay is due to the government agency or emergency circumstances.

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 Chapter Four: Concluding and implementing contracts 9/7/2022 8:24 AM

4 If the contracting party delays implementing the contract for reasons beyond his control.

5If an order is issued by the government agency to stop the work or some of it for reasons that are not attributable to the business. Contract with him. The

regulations specify controls and procedures for extending contracts and exempting from the fine.

Chapter Seven:

Partial withdrawal and implementation on the account of

the contracting party. Article seventy-five:

The government agency may withdraw part of the work and purchases and
implement them at the expense of the contract with him; If he violates his
contractual obligations

after being warned, the regulations explain what is necessary to implement

This article.

Chapter Eight:

Termination of contracts

Article seventy-six:
1- The government entity must terminate the contract in the following cases:

A- If it turns out that the contracting party has initiated - directly or through someone else - the Indirectly or indirectly - in bribing an employee of the

entities subject to the provisions of the law or obtaining A contract is concluded by means of bribery, fraud, fraud, forgery, manipulation, or any of

these in consequence. Implement it For the contract.

B- If the contracting party becomes bankrupt, or a request is made to declare his bankruptcy, or his insolvency is proven, or an order is issued to place It is under receivership, or it was a

company and it was dissolved or liquidated.

C- If the contractor relinquishes the contract without written approval from the government agency and the ministry. 2-

The government entity may terminate the contract in the following cases:

A- If the contractor is late in starting the work, or is slow in implementing it, or violates any of the terms of the contract and did

not correct its conditions within (fifteen) days from the date Inform him in writing of this.

B- If the contracting party dies. In this case, the contract is terminated, the dues are settled, and the guarantees are returned. The government

agency may continue to contract with the heirs - after their agreement - to They have the technical qualifications and guarantees necessary to

complete the implementation of the contract.

C- If the contracting party contracts with him to sub-execute the contract without written approval from the party. This is the government. 3- In the event
of

termination of the contract, it is permissible to offer the remaining parts thereof in the manner in which they were offered. The government agency may issue

an invitation to conduct a limited competition. To the holders of bids that were next in line to the winning bid, such that they are required to New offers have

been submitted and are evaluated in accordance with the provisions of the system.

4- The regulations specify the conditions and procedures necessary to implement the provisions of

this article. Article seventy-seven:

The government entity may terminate the contract if the public interest so requires, or if it is agreed to finalize the agreement with the contractor, after the Ministry’s

approval, in accordance with the conditions and procedures that stipulate Here is the list.

Article Seventy-Eight:
When the contract is terminated pursuant to Paragraph (1), Paragraph (2/A), or Paragraph (2/C) of Article (1) (seventy-six) of the system, confiscation of the

final guarantee, without prejudice to the right of the government entity to A claim against the contracting party for compensation for what happened to her.

of harm, and the committee stipulated in Article (eighty-eight) of the system shall be provided with A copy of the decision to consider preventing dealings

with the contractor with the government agency.

Chapter Nine:
Evaluating the contractor's performance
Article Seventy-
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The government entity evaluates the performance of its contracting party after completing its implementation of the contract. D, by using the contractors’ performance

evaluation model. The results of the contractors’ performance evaluation are not announced. Only after the evaluation decision is final. The regulation specifies the controls

and procedures necessary to implement this, and the resulting impact on the situation of The contractor’s performance.

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