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The Finance Ministry could introduce amendments to the executive bylaws of its government tenders and procurement law in a bid make it easier for government agencies to implement projects abroad and to close public construction works, a document on the proposed changes (pdf) shows.
Fresh rules: Government entities will, if the changes go through, have the freedom to waive requirements that bidders provide preliminary or final financial guarantees “depending on what [the agency] sees as of best interest.” The changes would also give it flexibility on final guarantees and deadlines provided it makes clear the requirements in its initial tender documents.
Changes to advance payments: Governmental bodies would be allowed to disburse an advance payment of no more than 30% of the total contract for projects and purchases abroad, the amendments showed. An option to disburse an advance payment of no more than 10% of the total contract for projects and purchases in the Kingdom was left unchanged. Deposits are only made when contractors provide guarantees for the deposits; agencies cannot make deposits on extensions or additional works.
And arbitration: The rules would remove a requirement that theFinance Minister approve clauses on arbitration for overseas contracts on contracts worth less than SAR 10 mn. Both parties can agree on arbitration clauses regardless of the contract’s value.
The gov’t wants to know what the public thinks: The Finance Ministry has put its proposed rules up for public consultation on the public consultation platform Istitlaa. Stakeholders have until 12 February to submit comments.
