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The Finance Ministry has introduced a number of amendments to the executive bylaws of its government tenders and procurement law in a bid to make it easier for both government agencies and private contractors, a document on the amendments shows (pdf).
Among the key changes: The amendments allow government agencies running projects outside of the Kingdom to get quotes for work outside of the state’s electronic procurement portal. Still, signed contracts will need to be submitted through the e-portal. Agencies contracting for projects outside the Kingdom can do so in a language other than Arabic, but will need to file an Arabic translation in the end.
Government agencies can also waive preliminary guarantees or final guarantees “according to what it sees is of best interest” — but need to make clear how they will hold contractors accountable for quality. The rules also aim to make it easier for bureaucrats to form committees that review offers or manage pre- and post-qualification processes.
A pre-tender safety check is now required for all projects: Government agencies will generally need to make certain that project sites meet safety standards before launching tenders, but will have flexibility to sidestep the requirement provided they meet it prior to the award and signing of a contract.
Overseas contracts can now include arbitration clauses even if they’re worth less than SAR 100 mn provided the parties get approval from the Finance Ministry. Arbitration on can only take place at the Saudi Center for Commercial Arbitration or other Saudi arbitration venues.
