implementing regulations of government tender and procuremne

8/11/2019 Implementing Regulations of Government Tender and Procuremne

1/74

Rules of ImplementationImplementing Regulations of

Government Tender (Bids) andGovernment Procurement Law

Minister of Finance Decision o! "#$$% Safar&'$ * &% Marc+ $%%,

1


2/74

-+apter .nePreparation of Tender Documents and

/dvertisementand/nnouncementof Tender

/rticle &0

Prior to putting their works up for public tender orsecuring procuringtheir needs, Governmentgovernment Authorities authoritiesshall, throughtheir technical departments or a by hiringaconsultant,draft set accurate and detailed termsand accurate detailed technical specications forthe required works, provided that they avoid anyreference to types, items or trademarks or avoid

draft setting the specications so as to applicableonly to certain trademarks.

and Government Authorities authoritiesshall shallnot overstate the specications,nwhich shall notorexceed the needsand requirements of the proectnor the funds allocated thereto. !hey shall shallinform theensure compliance of consultantso"cessetting draft the specications to take that into

considerationwith the same.

/rticle $0

Preference shall be given to nationallyindustriesmanufactured goods, products, services,products of national origin as well as products andservices of other countries that are treated onequal basis, in accordance with the rules favoringnational products. and this!his shall be providedfor in the terms and specications of works to beexecuted.

/rticle "0

Government authorities Government Authoritiesshall update information relating to their proects

and works before approving them. !hey shallreview the technical specications, drawings, and

2


3/74

plans and introduce make any amendments orcorrections before placingprior to putting theirworks up for public tender or securing procuringtheir needs, especially outdated documents orcontinuously updated specications of equipmentand programs.

/rticle '0

#efore setting designs, drawings and bills ofquantities, a Government Authority shall carry outnecessary soil tests and probing for executionproects that require themrequiring.

/rticle 10

$a%Prior to the tender announcement,advertising a !ender Government AuthorityGovernment Authority shall seek theassistance of the technical department whichparticipated in setting the specications, orother authorities speciali&ed in pricing,to putsetestimated guiding prices for the works onthe bills of items and quantities relating to

the !ender tender in accordance withprevailing market prices and on the basis ofprevious prices. !hey shall be shall be put inasubmitted sealed and referred to the'hairman chairman of the #id (xamination'ommittee to be opened by the 'ommitteewhen awarding the!enderstender.

$b%A Government Authority Government

Authority shall maintain a comprehensivedirectory for prices of materials and servicesprocured repeatedly, provided that suchdirectory is continuously updated.

3


4/74


5/74

/rticle 20

+ithout preudice to provisions of Article of these-ules -egulations, supply may be carried out onthe basis of a sample determined by the

Government AuthorityGovernment Authority orsuggested by the bidder, provided that it isconsistent with the terms and specicationsdetermined by the Government Authority.

/rticle &%0

Government authorities shall advertiseannounce

public tenders in accordance with the followingprocedures

$a%A tender shall be advertiseannounced in the/"cial Ga&ette and two local 0ewspapersnewspapers at least once, through electronicmeans advertise, on the website of 1mm Al2Gora 3ura Ga&ette and the website of theadvertising Authority authority. !he4ecretariat of the 'ouncil of 'hambers of'ommerce and *ndustry shall be providedwith an electronic copy of theadvertiseannouncement, provided that theadvertiseannouncement shall remains postedon those sites until the deadline forsubmission of bids.

$b%AdvertiseAnnouncement abroad shall bepublished in maor newspapers in countries

providing the service and by means ofinternational electronic advertising sites inboth Arabic and (nglish. Publication of theannouncement may be carried out incoordination with the 5ingdom (mbassiesembassies abroad, advertiseif necessary.

$c% *f the site of the proect is located outside the5ingdom, the advertiseannouncement shall

be made both inside locally and outside

5


6/74

abroad, in accordance with the method ofadvertiseannouncement provided for inParagraphs $a% and $b% of this Article.

$d%!he advertiseannouncement of the tendershall include clear and comprehensiveinformation about the worksadvertiseannounced and shall at leastinclude the following

- 0ame of the advertising authority.

- 0umber, description and purpose oftender.

- 4cope of classication.

- Price Price of documents and place ofsale.

- !ime and place of submission andopening of bids.

$e%!he interval between the date of the rstadvertiseannouncement in the /"cialGa&ette and the deadline for submission ofbids shall may not be less than thirty days,and not less than sixty days in case of

proects or works whose estimated costsamount to 6ifty fty 7illion million -iyalsriyals or more.

$f% 0o specic particular category ofclassication may be specied, and nostipulation that tenderers have certainqualication may be made at the time oftender advertising announcement or sale of

documents.

/rticle &&0

+orks of continuing execution such asmaintenance, cleaning, operation and providingcatering services and the like shall be put up forpublic tender at the beginning of the nal year ofthe existing contract at the latest.

6


7/74

-+apter Two-onditions to 3e 4atis5ed 36 Bidders

/rticle &$0

$a% !hose interested in dealing withgovernment authorities shall possess thefollowing documents and licenses

$% 'ommercial register oro"cial license in the eld of workssubect of the bid.

$8% 'lassication certicate in

the eld of works subect of the bid, ifthe value of the bid requiresclassication in accordance withprovisions of the 'ontractor'lassication 9aw.

$:% 'erticate of payment of zakator tax.

$;% 'erticate of registration of

the rm with the General /rgani&ationfor 4ocial *nsurance and payment ofinsurance contributions.

$


8/74

*n accordance with provisions of the 9aw and these-ules-egulations, it is prohibited to deal with thefollowing persons

$% Government employees with the exceptionof

$a% 0on2commercial activities if they are

permitted to pursue them.$b% Purchase of books authored by them

whether directly from them or frompublishers or bookstores.

$c% 'ommissioning them to do artisticworks or buying their intellectualproperty rights or works.

$d% Participating in public auctions if thearticles to be purchased are for theirpersonal use.

$8% Persons imprisoned for crimes duringcontracting procedures.

$:% Persons boycotted in accordance with the9aw until they are rehabilitated.

$;% #ankrupts or those who le for bankruptcy

or proven insolvent or an order has beenissued to put them under receivership.

$


9/74

or delivered by hand, using original forms receivedfrom the Government AuthorityGovernmentAuthority and carrying its stamp so as to ensuretheir condentiality and non2opening. (ach biddershall be given a receipt showing the date and timeof submission. #ids submitted or received by theGovernment AuthorityGovernment Authority after

expiration of the period specied for submission ofbids shall not be considered.

/rticle &1

1se of electronic means for preparation of tenderdocuments and submission of bids referred to inArticle of the 9aw shall be in accordance with

the following$a%Preparation of complete tender documents or

any part thereof such as bills of quantitiesshall be on compact discs or Boppy discs orthe like, which can be opened, read and theirdata completed but their contents can not bechanged.

A tenderer shall prepare his bid on the copy

he received, put his prices on the bill ofquantities and deliver the same to theGovernment AuthorityGovernment Authorityalong with the other documents of his bid.

$b%Preparing tender documents and receivingbids electronically, using electronicsignatures.

$c% (lectronic means shall be used in matters

referred to Paragraphs $a% and $b% of thisArticle, in accordance with the electronicsignature rules approved by the 7inistry of6inance for inviting and receivinggovernment tenders.

/rticle

9


10/74

A tenderer shall observe the classication of workssubect of the tender, taking into consideration thenancial limits of his classication degree. 0on2complying bids shall be excluded.

/rticle &,

Prior to submitting his bid, a bidder proposing toexecute the works shall explore the nature of theworks subect of the tender and the executioncircumstances. Ce shall be aware of all informationand details pertaining to the works and what maya)ect the categories of his tender as well as therisks of his obligations. !he GovernmentAuthorityGovernment Authority shall furnish

tenderers with necessary clarications andinformation about the works to be executed andinform each tenderer, upon his request, of thevolume of the proect and of some of the generalinformation about it, which would enable him toassess the works before buying the tenderdocuments.

/rticle &A bid may be submitted ointly by severalcontractors in accordance with the terms of'lassication of Doint 'ontractors referred to in the'ontractor 'lassication 9aw, taking intoconsideration the following

$% !he oint relationship shall exist prior tosubmission of the bid and in accordance

with an agreement among the parties andcertied by an authority having the powerof authentication and certication, such asthe 'hamber of 'ommerce and *ndustry.

$8% !he oint agreement shall include anobligation by the oint parties to execute

ointly or severally all works and servicesput up for tender.

10


11/74

$:% !he oint agreement shall specify the legalrepresentative of the two parties before theGovernment AuthorityGovernment Authorityfor completion of contracting procedures,conclusion of the contract and theresponsibility for signatures andcorrespondence with the Government

Authority.$;% #id documents and papers shall be stamped

and signed by all oint parties. !he originalagreement shall be enclosed with the bid.

$


12/74

$b%1nit and total bid prices shall be recorded inthe bills of quantities in gures and words inthe local currency unless it is provided foranother currency.

$c% A bidder may not amend, erase or blot outany thing on the price list. Any correctionmade by the bidder shall be rewritten ingures and words, signed and stamped.

$d%*f the price categories amended, erased orblotted out exceed E of the price list, thebid may be excluded.

$e%A bidder may not omit or leave out any of thetender items un2priced unless permitted bythe tender terms.

/rticle $&

A bidder shall state in his bid whether the items tobe procured are nationally manufactured orproduced or are the products of another country./rticle $$

$a%A bid shall be submitted in an o"cial letterspecifying total prices and any increase ordecrease thereon.

$b%A bid shall carry the signature of the bidder.*f the bidder is a company or anestablishment, it shall carry the signature ofits legal representative. !he bid and all itsattachments shall carry the stamp of the

bidder.$c% !he bid shall be accompanied by the

preliminary guarantee. Any inconsistent bidshall be excluded.

$d%!he bid shall be accompanied by copies of alldocuments referred to in Article 8 of these-ules-egulations.

$e%*f a bidder fails to submit with his bid any of

the documents referred to in Paragraph $d% of

12


13/74

this Article, despite being in his possession atthe time of submitting his bid or if thedocument submitted has expired, he may begranted a period determined by the #id(xamination 'ommittee to submit suchdocuments within the time specied forresting the bidawarding the bid. *f they are

not submitted within the specied time, hisbid shall be excluded.

$f% An additional copy of the bills of quantities aswell as total and unit price lists identical tothe original and carrying the stamp of thebidder shall be submitted with the bid,provided that such copy remains with the #id(xamination 'ommittee pending completion

of tender analysis.

/rticle $"

A bidder may withdraw his bid before theexpiration of the bid submission period.

-+apter Four.pening of 4ealed7Bids

/rticle $'

$a%!he minister or head of the independentagency shall issue a decision to form a

committee or more for opening sealed2bids inaccordance with the provisions of Article ;of the 9aw.

!he decision shall designate a vice chairmanto act on behalf of the chairman in hisabsence.

$b%!he minister or head of the independent

agency may delegate the power to formcommittees for opening sealed2bids at

13


14/74

branches and departments a"liated with theministry or the independent agency.

/rticle $1

4ealed2bids shall be opened on the specied time

and date, provided that the Authority takes intoconsideration receipt of the daily mail regular andelectronic delivered to it on the last date forsubmission of bids.

!he date of opening sealed2bids may not be laterthan the day following the deadline for submittingbids. !he committee shall complete opening of allsealed2bids in the same meeting.

/rticle $#

+ithout preudice to the provisions of Article 8< ofthese -ules-egulationsand Article < of the 9aw,the period for accepting bids may be extended andopening of sealed2bids may be postponed in thefollowing cases

$%*f it appears that the statutory period forsubmission of bids as specied in Article Paragraph $e% of these -ules-egulations isnot given in full. !he Authority shalladvertiseannounce the extension of theperiod for accepting bids and thepostponement of the opening of sealed2bidsso as to complete this period in accordancewith the procedures of announcing publictenders, provided that buyers of the bid

documents are notied of that in writing.$8%*f there are acceptable grounds for extending

the period for accepting bids as whenmaterial errors in the bills of quantities or inthe tender terms are discovered or there is a

ustied request by the maority of buyers ofthe bid documents acceptable to theGovernment AuthorityGovernment Authority

or in case no bids are submitted.

14


15/74

(xtension of the period for accepting bidsand postponement of the opening of sealed2bids for a suitable period shall beadvertiseannounced in accordance with theprocedures for advertiseannouncing publictenders, provided that buyers of the biddocuments are notied of that in writing.

$:%*f the 4ealed2bid /pening 'ommittee is notable to perform its duties for acceptablereasons, the time of opening sealed2bidsshall be postponed for the required andnecessary period. !he tenderers shall benotied of that in writing. *n this case, nonew bids may be accepted during the periodof postponement.

/rticle $,

$a% !he 4ealed2bid /pening 'ommitteeshall ensure the integrity of the sealed2bidsand their conformity with the form speciedby the 9aw and these -ules-egulations. *tshall state in its minutes the number of bids

submitted and give to each bid a serialnumber in the form of a normal fraction, thenumerator of which is the number of the bidand denominator is the sum of bidssubmitted.

$b% !he 'ommittee shall announce to thebidders present or their representatives, thename of the bidder, his total price and any

increase or decrease thereon in the originalbid letter.

$c% !he 'hairman of the 'ommittee and allmembers shall list the samples, thespecications of the equipment andmaterials catalogues submitted with thebid, sign the original bid letter, the bills ofquantities, the bank guarantee, the

certicates accompanying the bid and the

15


16/74

minutes in which the 'ommittee record itsprocedures.

$d% !he 'ommittee shall record thecontents of sealed2bids opened by it andany amendment, correction or blotting outof prices. *t shall list the un2priced items orthose whose total and unit prices are notrecorded in gures and words.

$e% !he 4ealed2bid /pening 'ommitteemay not exclude any bid or request biddersto correct errors or set right the commentsmade on their bids.

*t may not accept any bid, envelopes,letters or samples submitted by the bidders

during the meeting for opening sealed2bids.$f% 1pon completing its works, the 4ealed2

bid /pening 'ommittee shall refer itsminutes and the tender documents to the#id (xamination 'ommittee within a periodnot exceeding the period specied underArticle < of the 9aw.

-+apter Five89amination of Bids

/rticle $

$a%!he minister or head of the independentagency shall issue a decision to form acommittee or more for examination of bids in

accordance with the provisions of Article =of the 9aw. 4aid decision shall designate avice chairman to act on his behalf in hisabsence.

!he meeting of the committee shall not bevalid unless attended by the nancialcontroller.

$b%!he minister or head of the independent

agency may delegate the power to formcommittees for examination of bids at

16


17/74

branches and departments a"liated with theministry or the independent agency.

/rticle $2

!he #id (xamination 'ommittee shall recommendawarding the work to the lowest bidder and thebest in technical terms, which complies with theterms and specications, and it shall exclude bidsnot complying with the terms and specications inaccordance with the provisions of the 9aw andthese -ules-egulations.

/rticle "%

!he #id (xamination 'ommittee, the otherprocurement committees and the technicalanalysis committees shall be bound by thetechnical and statutory standards of tenderanalysis, and shall determine the technical andnancial ability of the tenderer, as stipulated underthe provisions of the 9aw and these

-ules-egulations.0o bid shall be excluded on technical grounds aslong as it complies with the terms andspecications and conforms to the provisions of the9aw and these -ules-egulations.

/rticle "&

$a%+ithout preudice to equal opportunity andtreatment of tenderers, the #id (xamination'ommittee may request tenderers to clarifyany data or obscurity in their tenders,provided this does not result in a change ofsubstantial matters including price or inrendering a tender inconsistent with theterms and specications into an acceptableone.

17


18/74

$b%!echnical Analysis 'ommittees ordepartments in charge of tenders andprocurements in GovernmentAuthoritygovernment authorities may notcommunicate with bidders with respect tothe provisions of Paragraph $a% of this Articleexcept with the prior approval of the #id

(xamination 'ommittee.

/rticle "$

$a% *f the tenderer does not provide prices forsome items, the #id (xamination 'ommittee,without preudice to its right to exclude thebid, may consider the unpriced items

covered by the total value of the bid, and thetenderer shall be deemed to have acceptedthis condition when submitting his bid.

$b%*n supply contracts, a tenderer shall beconsidered not having submitted a bid for theunpriced items and his bid shall be excludedif splitting of the tender is not permittedunder the tender terms.

$c% *n case the contractor fails to execute theitems covered by the total value of the bid,they shall be executed at his expense or anamount equal to their cost shall be deductedon the basis of the tenderersF average priceof item or the price estimated by the #id(xamination 'ommittee in case of a singlebid tender or in case all tenderers fail to pricethe items in question.

$d%*f a Government AuthorityGovernmentAuthority decides not to execute any of theitems covered by the total value of thecontract, an amount equal to its cost shall bededucted in accordance with the method ofpricing referred to in Paragraph $c% of thisArticle.

18


19/74

/rticle ""

$a%!he #id (xamination 'ommittee shall reviewthe bill of quantities and prices stated in thebid, whether unit or total prices, and make

necessary material corrections.$b%*f there is a discrepancy between prices

stated in words and price stated in gures,the prices stated in words shall prevail, andin case of a discrepancy between the unitprice and the total price, the unit price shallprevail.

$c% *f there is evidence that the price is not

correct in accordance with the correctionmethod provided for in Paragraph $b% of thisArticle, the #id (xamination 'ommittee, afterascertaining the nancial equilibrium ofprices of the items and comparing the pricewith similar prices in the bid and other bids,the market price and the estimated prices,shall adopt the price stated in the bid provento be correct.

$d%!he #id (xamination 'ommittee mayrecommend the exclusion of a bid ifmiscalculation in prices, after being correctedin accordance with the provisions of thisArticle, results in an increase or decrease ofmore than E of the total value of the bid.

/rticle "'

$a%!he #id (xamination 'ommittee shallascertain that the price of the lowest bidcomplying with the terms and specication isfair, guided by previous prices, market pricesand estimated guiding prices of the tender.

$b%*f the bid prices exceed the allocated funds

because the prices exceed the estimatedprices and market prices, negotiations shall

19


20/74

rst be made to reduce the bid to theprevailing price and then negotiations shallbe made to cancel or reduce some items inaccordance with Article 8 of the 9aw.

/rticle "1

A bid based on reducing a percentage or a certainamount from the lowest bid shall be excluded.

/rticle "#

*f two bids or more become equal in prices aftercorrection, a Government AuthorityGovernment

Authority may split the tender among equal bids ifsplitting is permitted under the tender terms. *fsplitting is not provided for, the lowest price amongequal bids shall be determined through a closedsealed2bid tender.

/rticle ",

+ithout preudice to provisions of Article 8 of the9aw, the #id (xamination 'ommittee, beforerecommending the exclusion of under priced bids,shall take the following into consideration

$a%Ascertaining that the estimated guidingprices of the works are fair and compatiblewith prevailing market prices at the time ofbidding.

$b%Ascertaining the technical expertise of thebidder and the similar works executed byhim.

$c%-eviewing the nancial position of the bidderto ensure his ability and nancial capacity.

$d%*nquiring about the bases and standardsupon which prices are determined by thebidder.

20


21/74

(e) *f the #id (xamination 'ommittee isunanimously convinced of the inability of thebidder, or if his bid is under priced as toa)ect the fulllment of his obligations, it shallrecommend the exclusion of the bid.Cowever, if it appears that the bidder isqualied and experienced and the prices

submitted by him, albeit low, cover the costof execution, a recommendation to rest thebidaward the bidto him shall be made.

/rticle "

+ithout preudice to provisions of Article 8: of the9aw, the #id (xamination 'ommittee shall, before

recommending the exclusion of a bidder whosecontractual obligations appear to be beyond hisnancial or technical capabilities, take thefollowing into consideration

$a%Ascertaining the volume of the bidderFsobligations in relation to the contracts he isexecuting for the Government Authority orother authorities, the standard of execution

and whether he can execute the proectsubect of the tender in addition to existingcontracts.

$b%Ascertaining his technical expertise andnancial capabilities in accordance with theprovisions of Paragraphs $b% and $c% of Article:> of these -ules-egulations.

$c%!he exclusion shall be based on acceptable

substantial grounds, taking into account theinterest of the GovernmentAuthorityGovernment Authority, pursuant toa technical report prepared by it.

$d%*f the #id (xamination 'ommittee isconvinced that the abilities of the bidder donot permit assigning him other works thatmay a)ect the execution of his obligations, it

21


22/74

may recommend his exclusion from thetender.

/rticle "2

$a%Amounts paid for tender documents shall be

refunded to bidders if the tender is cancelledfor a reason attributable to the GovernmentAuthorityGovernment Authority, as when thetender is cancelled for public interest beforeresting the bidawarding the bidor becauseits procedures violate the provisions of the9aw or because of errors in the terms andspecications, and also if the GovernmentAuthority nds the bids submitted to be over

priced or exceeding the funds allocated forthe proect.

$b%Amounts paid for tender documents shall notbe refunded if cancellation takes place afterthe opening of sealed2bids, except to atenderer who has submitted a bid. *n allcases, the amount paid shall not be refundedto a tenderer until he returns the purchased

documents.

/rticle '%

An excluded bidder shall be informed of thegrounds for exclusion by an o"cial letter upon his

request.

/rticle '&

$a% *f a Government AuthorityGovernmentAuthority is unable to rest the bidaward thebidduring the validity period of tenders, itshall notify bidders of its desire to extend the

validity period of their bids for another ninetydays.

22


23/74

$b%#idders who agree to the extension shallextend their guarantees and inform theGovernment AuthorityGovernment Authorityaccordingly within two weeks from the dateof the extension notice. Anyone who fails torespond during this period shall beconsidered not agreeing to extend his bid

and his preliminary guarantee shall bereturned to him.

-+apter 4i9-onclusion of -ontracts and 89ecution

Periods

/rticle '$

$a%!he execution period of service contracts ofcontinuing execution shall be proportionatewith the costs allocated for the contract inthe budget, provided that the contract termdoes not exceed ve years in accordancewith provisions of Article 8@, Paragraph $a% ofthe 9aw.

$b%Agreement shall be made in advance withthe 7inistry of 6inance in relation to contactswhose execution requires more than veyears.

$c% !he summer vacation period shall beexcluded in contracts of cleaning,maintenance and other services in relation toeducational institutions and the like. !henumber of workers and unnecessaryelements of the contract shall be reduced ifthese institutions carry out limited activitiesduring such period.

/rticle '"

$a%After submission of the nal guarantee, theGovernment Authority shall x a date for

23


24/74

signing the contract. *f the contractor fails toappear on the specied date withoutacceptable ustication, he shall be notiedby a registered letter. *f he fails to sign thecontract within fteen days from thenotication date, the works shall bewithdrawn from him in accordance with the

provision of Article


25/74

work site shall be preliminarily handed overbefore the expiration of the period of thecurrent contract to enable the contractor toprepare and be ready for the works incoordination with the contractor of thecurrent contract, and then the site shall behanded over for commencement of execution

of the contract after expiration of theprevious contract.

/rticle '#

$a% *n public work contracts, if the contractordelays, procrastinates or refuses to receivethe work site, he shall be notied by a

registered letter. *f he fails to receive the sitewithin fteen days from the notication date,the Government Authority shall prepareminutes of constructive hand2over of the siteand notify the contractor, warning him of theneed to start execution within fteen daysfrom the notication date. *f this periodexpires without him starting work, the worksmay be withdrawn from him in accordance

with the provisions of Article


26/74

Prior to approving the assignment of a contract orany part thereof, a GovernmentAuthorityGovernment Authority shall take thefollowing into consideration

$a%-easons for assignment and whether thereare other contracts previously assigned bythe contractor, pursuant to a statement to besubmitted by the contractor to theGovernment AuthorityGovernment Authority.

$b%Assignment shall be in accordance with anagreement concluded by the two parties tospecify their obligations towards theGovernment AuthorityGovernment Authoritythat owns the proect.

!he agreement shall not be deemed validunless the Government AuthorityGovernmentAuthority approves the agreement andassignment.

$c% Assignment shall not be detrimental to theproect, as a result of executing it at undulylow prices.

$d%!he contractor to whom the assignment is

made shall satisfy the terms of contractingwith the Government and shall be classiedin the eld and category of the worksassigned to him.

/rticle '

*n public work contracts, a contractor shall be

responsible for reviewing the architectural andtechnical designs in details. Ce shall, immediatelyupon discovering them, notify the GovernmentAuthority of technical errors a)ecting safety ofconstructions or errors he nds in specications orplans. Ce shall also review the reports andrecommendations relating to soil tests. Cowever,this shall not relieve the consultant designer or

supervisor from their contractual obligations.

26


27/74

/rticle '2

A contractor may not refuse to carry out hisobligations on grounds that the GovernmentAuthorityGovernment Authority is in default of itsobligations.

-+apter 4evenBan: Guarantees

First0 Terms of Preliminar6 Guarantees

/rticle 1%

$a%!he tender terms shall provide for thepercentage of the preliminary guarantee.

$b%A bid accompanied by an incompletepreliminary guarantee may not be acceptedregardless of the percentage of the shortage.6ractions of a riyal shall not be considered ashortage in the guarantee, and the

guarantee shall be in ratio to the total valueof the contract before review and correction.

$c% !he preliminary guarantee shall be valid for aperiod not less than ninety days from thedate specied for the opening of sealed2bids.*nconsistent bids shall be excludedregardless of the period of shortage.

$d%!he Government Authority shall request the

extension of the preliminary guarantee of thesuccessful bidder in case its validity periodexpires before submitting the nalguarantee.

$e%!he preliminary guarantees shall be returnedto excluded bidders after resting thebidawarding the bid and also in case ofcancellation of tender or upon expiration of

the tender validity period, unless the bidderexpresses his desire to continue to be bound

27


28/74

by his bid in accordance with Article ; ofthese -ules-egulations.

$f% !he Government AuthorityGovernmentAuthority, at its discretion and at the requestof bidders, may release their preliminaryguarantees before resting the bidawardingthe bidif it appears, after the sealed2bids are

opened and prices are revealed, that theprices of these bids are high or inconsistentwith the terms and specications, in amanner that precludes their awarding.

4econd0 Terms of Final Guarantees

/rticle 1&

$a%!he period specied for submission of thenal guarantee referred to in Article ::,Paragraph $a% of the 9aw shall be observed.

!he submission of the nal guarantee shallnot be necessary if the contractor delivers allitems awarded to him and the GovernmentAuthorityGovernment Authority makes a nal

acceptance of them within the nalguarantee submission period or delivers partof them and this part is accepted and itsprice is su"cient to cover the value of thenal guarantee, provided that the partcovering the value of the nal guarantee isnot paid except after the contractor performshis obligations.

$b%*n public work contracts, the nal guaranteevalidity period shall be extended if thecontractor delays the execution ofmaintenance works and the warranty untilthe expiration of the warranty year referredto in Article > of these -ules-egulations.

$c% !he contractor shall not be required tosubmit a nal guarantee in case he is

assigned additional works.

28


29/74

T+ird0 Terms of /dvance Pa6ment Guarantees

/rticle 1$

!he advance payment guarantee shall be equal toits value and valid until recovery of the full

payment. !he Government Authority shall notifythe bank issuing the guarantee to reduce its valueby a percentage equal to the amount of theadvance payment recovered in accordance withthe claims for payment and on the date ofdeduction, without the request of the contractor.

Fourt+0 89tension of Guarantees

/rticle 1"

$a%!he Government AuthorityGovernmentAuthority shall extend the guarantee validityperiod prior to its expiration if the groundsspecied for extending the validity of theguarantee exist, in accordance with the 9aw,

these -ules-egulationsand the terms of thecontracts.

$b%!he Government AuthorityGovernmentAuthority shall address the extension requestdirectly to the bank and provide thecontractor with a copy thereof. !he extensionshall be for the necessary period required.

!he extension request shall state that if thebank fails to complete the extensionprocedures prior to expiry of the guaranteevalidity period, it shall immediately pay thevalue of the guarantee to the GovernmentAuthority.

Fift+0 -on5scation of Guarantees

29


30/74

/rticle 1'

$a%+here there are causes ustifyingconscation of the contractorFs bankguarantee in accordance with the 9aw, these-ules-egulationsand the contract terms, theGovernment AuthorityGovernment Authority

shall refer the matter to the #id (xamination'ommittee or the Procurement 'ommittee asthe case may be to study the case andsubmit a reasoned recommendation to theo"cial authori&ed to rest the bidaward thebid, taking into consideration theconsequences of conscation and theguarantee validity period.

$b%!he conscation request shall be limited tothe guarantee relating to the proect in whichthe contractor defaults to carry out hisobligations and shall not extend toconscation of guarantees relating to otherproects whether with one or severalgovernment authorities. !he guarantee maynot be conscated for reasons other thanthose for which the guarantee is submitted.

$c% +hen the preliminary guarantee isconscated in split tenders, the conscationshall be limited to part of the value of theguarantee proportionate to the value of theworks awarded to the contractor.

$d%*f the Government AuthorityGovernmentAuthority decides to conscate theguarantee, it shall explicitly instruct theissuing bank to conscate the guarantee,using the expression conscation of theguarantee. !he conscation request shall beaddressed to the bank directly, and the bankshall immediately respond to the request.

4i9t+0 General Provisions Relating toGuarantees

/rticle 11

30


31/74

$a%*f the guarantee is issued by a foreign bankthrough a local bank in accordance withArticle :;, Paragraph $b% of the 9aw, theGovernment AuthorityGovernment Authorityshall instruct the local bank to observe theterms and rules of the bank guaranteesspecied by the 9aw and these

-ules-egulations.$b%!he guarantee may be issued by several

banks, provided that each bank pays acertain percentage of the value of theguarantee.

$c% !he guarantee shall be payable at the rstrequest by the GovernmentAuthorityGovernment Authority, with no need

for a udicial ruling or a resolution by anarbitration tribunal.

$d%!he guarantee shall be unconditional andirrevocable and its value shall be free fromany deductions relating to taxes, fees orother expenses.

$e%!he Government AuthorityGovernmentAuthority shall maintain registers formonitoring guarantees submitted bycontractors and following up procedures forrequesting extension of their validity,conscation or releasing.

/rticle 1#

$a%Provisions, forms and terms of guarantees,referred to in the 9aw and these-ules-egulations, shall apply to allguarantees required by governmentauthorities in accordance with theirprovisions, including guarantees required inpublic auctions for the sale of movables orlease of real properties or investmentthereof, in cases not regulated by a special

provision.

31


32/74

$b%!he form and wording of bank guaranteesapproved by the 7inistry of 6inance inaccordance with the provisions of the 9awand these -ules-egulations shall beobserved.

4event+0 -as+ Guarantees

/rticle 1,

!he cash guarantee referred to in Article :;,Paragraph $c% of the 9aw shall be submitted inaccordance with the following

$a%!he amount of the cash guarantee shall bedelivered to the cashier of the Government

Authority against a receipt for the amount.$b%!hese amounts shall not be deposited into

the cash account or entered into the nancialrecords and shall be ready at the request ofthe 'ommittee 4upervising (xecution of+orks which shall expend such amounts withthe approval of the head of the departmentat the Government Authority subect of the

contract.$c% !he Government Authority shall notify thecontractor to immediately o)set the amountexpended. *f he procrastinates, the sum shallbe deducted from his entitlements.

$d%!he cash guarantee may not be used orconscated for purposes other than those forwhich it is allocated.

$e%!he cash guarantee or the remainder thereof

shall be refunded to the contractor aftercompletion of the contract execution againstthe receipt delivered to the contractor.

$f% !he amount of the cash guarantee may bedeposited in an account with the 4audiArabian 7onetary Agency or in a bank inaccordance with the nancial instructions ofthe budget and accounts.

-+apter 8ig+t

32


33/74

Increase and Decrease of -ontractor;s.3ligations

/rticle 1

!he Government AuthorityGovernment Authority in

exercising its powers to increase or decrease thecontractorFs obligations or make any amendmentor change in the works contracted for, shall takethe following into consideration

$% !he additional works shall be subect of thecontract and not outside its scope.

$8% !he amendments or changes necessary forthe works shall serve the interest of the

facility, provided that this does not result inviolation of the terms and specications orin a change in the nature of the contract orits nancial equilibrium.

$:% (nsuring availability of funds necessary tocover the value of the additional worksbefore instructing the contractor to executethem.

$;% *f the additional works have no similar itemsor quantities in the contract, they shall bereferred to the #id (xamination 'ommitteeor the Procurement 'ommittee, as the casemay be, to study the assignment of theseworks and the reasonableness of the pricessubmitted by the contractor. *f thecontractor disagrees with the decision of the

committee, said works shall be contractedfor with other contractors, in accordancewith the provisions of the 9aw and these-ules-egulations.

$


34/74

change orders shall be issued by the o"cialauthori&ed to rest the bidaward the bid.

/rticle 12

!he contractor may not execute any works orservices not covered by the quantities and items of

the contract unless instructed to do so in writing./therwise, the contractor shall not be entitled tothe value of works executed.

/rticle #%

!he term of service contracts of continuing

execution such as maintenance, cleaning operationand catering services may be extended by notmore than E of the total contract value,provided that this percentage is not exhausted inexecuting additional items or quantities under thecontract.

/rticle #&

*n direct purchase contracts provided for in Article;; of the 9aw and contracts exempted from publictender provided for in Article ;> of the 9aw, thecontractor may be assigned additional works of notmore than E of the contract value, inaccordance with the terms governing additionalwork orders.

-+apter inePa6ment of 8ntitlements

/rticle #$

!he advance payment of contractorsF entitlementsshall be paid in accordance with the provisions ofArticle :@ of the 9aw, taking the following into

consideration

34


35/74

$% Ascertaining the availability of thenecessary cash in the allocated fundbefore stipulating for payment of theadvance payment in the tender terms.

$8% !he advance payment shall be paid afterthe contractor submits the advancepayment guarantee and shall be deductedfrom his entitlements in installments at arate equal to the percentage of theadvance payment from the value of eachclaim for payment, starting with the rstclaim.

$:% An advance payment may not be paid atthe renewal or extension of existingcontracts or when assigning additional

works.

$;% 'riteria relating to the advance paymentguarantee referred to in Article :@ of the9aw and Article


36/74

*n public work contract, settlement shall be madeon the basis of actual measurements of quantities,items and numbers executed.

/rticle ##

+ithout preudice to provisions of Article ; of the9aw, the nal claim for payment shall be paid afterthe contractor executes all his contractualobligations and submits the following certicates

$8% A certicate from the ?epartment of Zakatand *ncome proving payment of zakator taxdue.

$:% A certicate from the General /rgani&ation

of 4ocial *nsurance proving the registrationof the establishment with the /rgani&ationand payment of insurance contributions.

$;% !he certicates to be submitted inaccordance with the approved contractforms.

/rticle #,

!he contractor may assign payments due to himunder the contract with the approval of thecontracting Government Authority and inaccordance with the form of assignment approvedby the 7inistry of 6inance without preudice to theprovisions of the contract and the rights of theGovernment Authority or other government

authorities against the contractor.

-+apter TenRules of Direct Purc+ase

/rticle #

+ithout preudice to provisions of Articles ;;, ;


37/74

of public tender procedures, taking intoconsideration the interest of the facility, thecircumstances of execution and the quantity andtype of works required to be performed.

/rticle #2

+orks of continuing execution such as contracts ofmaintenance, cleaning, operation and catering,transport services, all works procured periodicallyand repeatedly and public works for whichpreparation, terms, specications and plans areworked out before their execution shall not beconsidered urgent cases which may be procured bydirect purchase except where such works satisfy

the direct purchase terms specied under theprovision of the 9aw and these -ules-egulations.

/rticle ,%

*n case of direct purchase, the opportunity shall begiven to as many dealers as possible, so as not torestrict the transactions of the Government

Authority to a limited number of them or dealcontinuously with certain companies orestablishments. !he Government Authority shallkeep lists of establishments and companiesinterested in registering to provide their services indi)erent works.

/rticle ,&

*n case the Government AuthorityGovernmentAuthority desires to meet its needs that areprocured by direct purchase through electronicmeans of purchase in accordance with Article ;


38/74

-+apter 8levenProcurements and ,Paragraph $d% of the 9aw which are not foundexcept with one supplier, contractor or producer

shall take the following into consideration

$% !he Authority is in an urgent need to obtainthe goods, services or constructions andthere is no reasonable substitute which canbe obtained from other sources.

$8% !he advertiseannouncement shall be made inaccordance with the procedures of

advertising public tenders to make sure thatthe goods, services or constructions are notavailable except with one producer orsupplier and also through o"cial commercialsources, data and information basesavailable with government authorities orother related authorities.

$:% !he price is reasonable otherwise,acceptable substitutes shall be sought.

/rticle ,"

1nless otherwise provided for by a specialprovision, works exempted from public tendersreferred to in Article ;> of the 9aw shall begoverned by the procedures of public tenders

provided for in the 9aw and these-ules-egulations.

38


39/74

-+apter TwelveMeeting eeds 36 Renting or

Trading in of Mac+iner6 and 8=uipment

First0 Renting of 8=uipment> Mac+iner6 andPrograms

/rticle ,'

Government authorities desiring to meet some oftheir needs, such as equipment and computerhardware and software, by renting shall take thefollowing into consideration

$% -enting shall be more benecial to the

Government AuthorityGovernment Authoritythan purchasing.

$8% Assessment of the need for renting shall bebased on a technical report prepared by atechnical speciali&ed committee andapproved by the o"cial authori&ed toresting the bidaward the bid.

$:% (quipment and requisites rented shall be

insured by the renter or under his guaranteeduring the rent period. *n all cases, he shallbe obliged to maintain them during the rentperiod.

$;% !he rent period shall be proportionate to thecontract costs allocated in the budget,provided that it does not exceed ve years.

4econd0 Trading in of Mac+iner6 and8=uipment

/rticle ,1

Government authorities desiring to trade inequipment and machinery in their possession fornew ones and pay the di)erence in value shall take

the following into consideration

39


40/74

$%(xpiry of the presumed life2span of theequipment or that they are either subect tocontinuous upgrading or the cost of theirmaintenance and spare parts are highcompared with the cost of the newequipment and their maintenance.

$8%(xchange shall save more funds for the

public treasury than sale.$:%A technical committee shall be formed from

the Government Authority to examine theold equipment and prepare a technicalreport on them covering the pointsmentioned in Paragraphs $a% and $b% of thisArticle, stating their purchase date,purchase price, present condition andestimated value.

$;%!he terms and specications of the newequipment put up for tender shall guaranteethe estimated value of the old equipmentand tendering shall be in relation to thevalue of the new equipment.

$


41/74

Penalties

/rticle ,,

*n supply contracts, if the supplier delays executionof his obligations, a penalty of E of the value ofdelayed items for each week shall be deducted,provided that the total penalty does not exceed =Eof the contract total value.

/rticle ,

$a%*n case of purchase orders of immediatedelivery which do not specify a certainperiod, the delay penalty shall be imposed

after one week lapse from the date of thepurchase order.

$b%!he penalty may not be imposed for delayperiods of less than one week.

/rticle ,2

*n supervision contracts, if a consultant delays

provision of a supervision team or defaults inexecution of his obligations, he shall be subect toa penalty to be determined in the contract,provided that the total penalty does not exceedE of the total value of the contract.

/rticle %

*f a contractor delays or defaults in execution of hisobligations in contracts of designs, preparation ofstudies, drafting of specications, plans, technicalworks and services of accountants, lawyers andlegal counselors, he shall be subect to a penalty tobe determined in the contract, provided that thetotal penalty does not exceed E of the totalvalue of the contract.

41


42/74

/rticle &

*f a contractor defaults in execution of hisobligations in contracts of service of continuingexecution such as maintenance, cleaning,operation, catering services, transportation andmanufacture, he shall be subect to a penalty to bedetermined in the contract, provided that the totalpenalty does not exceed E of the total value ofthe contract.

/rticle $

+hen assessing penalties in contracts referred to

in Articles >H, @ and @ of these -ules-egulations,government authorities shall provide in the tenderterms and in the contract terms for the method ofimposing the penalty in such a way as to cover allaspects of execution default or delay. *mposition ofthe penalty shall be gradual and proportionate tothe degree of violation, whether it is a lump sum orat a specied percentage of the value of the item

subect of the default or in another mannercompatible with the nature of said item.

/rticle "

*n addition to the imposition of the penalty incontracts referred to in Articles >H, @ and @ of

these -ules-egulations, the value of the items andservices not executed or executed in violation ofthe contract, regardless of their value, shall bededucted as if they were undelivered items. !hisincludes under performance, such as poorexecution and shortage in the number oftechnicians, workers, materials or equipmentrequired for execution.

42


43/74

/rticle '

*n public work contracts, if the contractor delayscompletion and delivery of work on the specieddate for delivery, he shall be subect to a delaypenalty calculated on the basis of the averagedaily cost of the proect, by dividing the value of

the contract by its period in accordance with thefollowing

$a%A penalty for the rst part of the delay periodat the rate of one quarter of the averagedaily cost for each day of delay until itamounts to fteen days or E of thecontract term, whichever is longer.

$b%A penalty for the second part of the delay

period at the rate of half the average dailycost for each day of delay until the two partsamount to thirty days or


44/74

*n mixed contracts, if a contractor defaults ordelays execution of his obligations, the penaltyshall be imposed on each part according to itsnature in such a way as not to exceed themaximum penalty under the 9aw, provided that theparts of the contract are separated from each otheras to the period of execution, delivery and total

value.

/rticle #

*n case a proect is withdrawn from a contractorafter expiration of the contract term, a delaypenalty shall be imposed for the period followingexpiration of the contract term until the date ofwithdrawal.

/rticle ,

!he delay or default penalty shall be deductedfrom the contractorFs entitlements when theybecome due. *n public work contracts, theGovernment AuthorityGovernment Authority maybe content with deducting not more than E from

the value of each claim for payment against thedelay penalty, and the remainder of the penaltyshall be deducted from the nal claim for payment.

/rticle

A contractor shall bear the supervision costs of theproect during the delay period in accordance with

the costs of the contract of the consultantsupervising execution. *f supervision is carried outby the Government AuthorityGovernment Authorityitself, the costs of supervision during the delayperiod shall be calculated in accordance with thefollowing formula

4upervision fees

during the

I Jalue of the

executio

K

K ?elayperiod

in days

44


45/74

delayperiod

ncontract

'ontractterm indays

/rticle 2

*f the consultant employees supervise more thanone proect for the GovernmentAuthorityGovernment Authority at the same time,the fees of said employees for the delayed proectshall be calculated in accordance with the followingformula

7onthlysupervisionfees for the

delayed proect

?

7onthly salary of theemployees K Proect value

!otal value of proectssupervised by the

consultant undelivered

After determining the full monthly supervision feesof the proect, the costs of supervision shall bededucted from the contractorFs entitlementsaccording to the delay period.

/rticle 2%

*f a contract is extended, the contractor shall berelieved from the supervision costs during theextension period.

/rticle 2&

*f the original contract term expires and thecontractor does not complete execution, theGovernment AuthorityGovernment Authority shallreconsider the number of the employees of theconsultant supervising execution and agree withhim as to the si&e and cost of the supervision teamaccording to the current stage of the proect andthe quantity and type of the remaining works.

45


46/74

-+apter Fourteen89tension of -ontracts and Relief from

Dela6 Penalt6

/rticle 2$

A Government Authority may not issue an orderextending the contract or notify the contractorthereof in cases other than those specied underArticle


47/74

$8%A copy of the site hand2over minutes orpurchase order in supply contracts.

$:%!he original letter of completion ofworks submitted by the contractorshowing the number and date of recordwith the GovernmentAuthorityGovernment Authority.

$;%All documents submitted by thecontractor or relied upon by theGovernment AuthorityGovernmentAuthority in its study, accompaniedwith a copy of the technical reportreferred to in Paragraph $a% of thisArticle.

$%7inutes of the #id (xamination'ommittee referred to in Paragraph $a%of this Article, provided that theyinclude the grounds cited by the'ommittee in its recommendations,approved by the competent minister orhead of the independent agency.

/rticle 21

/rders to suspend works or part thereof shall beissued by the o"cial authori&ed to award the bid.

!he suspension order shall be concurrent with theactual suspension period. !he contractor shall benotied accordingly by a letter specifying the dateof commencement of suspension of works or partthereof. Ce shall also be notied to resume workswhen the causes of suspension cease to exist.

47


48/74

/rticle 2#

+ithout preudice to Article


49/74

cover the Government AuthorityFs claims againstthe contractor until the nal settlement of accountsfor the proect is made./rticle &%%

*f a Government Authority decides to execute theworks at the expense of the contractor, execution

shall be in accordance with the terms andspecications agreed upon with the contractorfrom whom works are withdrawn. !he workswithdrawn shall be executed at the expense of thecontractor by one of the following methods

$a%!o agree with the second next bidder toexecute the works for the same pricesagreed upon with the rst bidder. *f he

disagrees, negotiations shall be conductedwith other bidders in sequence. *f contractprices are not reached, negotiations shall beconducted with all bidders in sequence toexecute the works for not more than theprevailing prices.

$b%*f the Government Authority is unable toexecute the works in accordance with

Paragraph $a% of this Article, it shall beexecuted by direct purchase, if their value iswithin the limits of such power and for notmore than the prevailing prices.

$c% *f the Government Authority is unable toexecute the works in accordance withparagraphs $a% and $b% of this Article,withdrawn works shall be put up for publictender in accordance with the provisions ofthe 9aw and these -ules-egulations.

$d%*f the withdrawn works relate to procurementcontracts which are exempted from publictender, they shall be executed at theexpense of the contractor in accordance withthe method of their purchase specied underArticle ;> of the 9aw.

$e% *f the value of withdrawn works does notexceed one hundred thousand riyals, the

49


50/74

Government AuthorityGovernment Authoritymay procure them in the manner it deemsappropriate for not more than the prevailingprices.

/rticle &%&

$a%7inutes shall be prepared ointly with thecontractor from whom the works arewithdrawn or his representative to record thestate of the proect at the time of withdrawaland the tools, materials and equipment onthe site. *f the contractor or hisrepresentative fails to attend after beingnotied, he shall not have the right to obect

to the contents of the minutes.

$b%!he contracting Authority shall have the rightto sei&e the materials and equipment on thesite. !he contractor from whom works arewithdrawn may recover his equipment andmachinery after settlement of his accountand payment of the amounts due.

$c%!he contracting Authority shall have the rightto use the materials and equipment tocomplete execution of withdrawn works afterestablishing their state in accordance withthe provisions of Paragraph $a% of this Article,provided that the value of the materials andthe equivalent rent for using the equipmentare assessed in accordance with prevailingprices.

/rticle &%$

!he contractor from whom works are withdrawn

shall bear all resulting di)erences in cost, in casethe works are executed at his expense.

50


51/74

/rticle &%"

A Government AuthorityGovernment Authority maymanage the proect or works contracted for byitself or assign them to a consultant o"ce, if itdeems it to be more in the interest of the proectthan withdrawal.

/rticle &%'

*f a contractor dies and his heirs do not desire tocontinue with the execution of the contract inaccordance with the provisions of Article


52/74

notice of completion. !he GovernmentAuthorityGovernment Authority shall form acommittee to commence inspection and hand2overwithin fteen days from the date of receipt of thecontractorFs notice. *f the Authority fails to acceptthe proect for reasons not attributable to thecontractor, such as factors that prevent operation

or testing or the unavailability of electric power orfor other reasons that fall within the AuthorityFsresponsibilities, then inspection minutes shall beprepared ointly with the contractor or hisrepresentative to list all completed works of theproects.

/rticle &%,

+ithout preudice to provisions of Article >= of the9aw, a proect in public work contracts shall remainunder the contractorFs warranty for not less thanone year as from the preliminary hand2over. !hisperiod shall begin as to the unnished works of theproect if any from the date of their acceptance.

/rticle &%

$a%A contractor shall, during the warranty yearreferred to in Article > of these-ules-egulations, maintain, repair andreplace defects that appear in the materialsused or defects in execution. !he AuthorityFsacceptance of works without reservations ordiscovery of shortcomings or materials

inconsistent with the specications and notrectied during the preliminary hand2overshall not relieve the contractor from hisobligation to guarantee and maintain them. *fhe fails to adhere to such obligations, theworks shall be executed at his expensewithin the prevailing prices after being givena notice in the manner the Authority deemsappropriate.

52


53/74

$b%!he warranty and maintenance referred to inParagraph $a% of this Article shall not coverperiodical or normal maintenance worksresulting from use, unless this is attributableto a defect in materials or execution inaccordance with technical principles.

/rticle &%2

*n public work contracts, nal acceptance of worksshall take place after expiration of the warrantyand maintenance period referred to in Article >of these -ules-egulations and after thecontractorFs fulllment of his obligations and hand2over of plans and specications of equipment and

machinery as well as documents relating to theproect in accordance with the public work contractform.

/rticle &&%

*n contracts of continuing execution, the Authorityshall form a technical committee for inspecting

works and accepting them after expiration of thecontract term, using minutes signed by thecontractor or his representative. *f there is anydefault or shortcomings in the execution of works,the contractor shall complete their execution. *f hefails to comply, the works shall be executed at hisexpense within prevailing prices, after being givena notice in the manner the Authority deemsappropriate.

-+apter 4eventeenReceipt of 4upplied Items

/rticle &&&

+ithout preudice to the -ules and Procedures of

Government +arehouses, the contractor shalldeliver items to the Government AuthorityFs

53


54/74

warehouses or locations specied for deliveryunder the contract.

/rticle &&$

!he Authority shall provisionally receive itemsrequiring inspection against a provisional receiptshowing the items supplied. !he date of theprovisional receipt of items, when accepted, shallbe considered the date of nal receipt.

/rticle &&"

!he supplier shall be notied of the meeting dateof the *nspection and -eceipt 'ommittee in order

to attend the procedures of inspection and nalreceipt. !he 'ommitteeFs decision to accept orreect the items shall be considered e)ective assoon as it is approved by the authori&ed o"cial./rticle &&'

*f the *nspection 'ommittee reects one or more ofthe items supplied, the supplier shall be notied bya registered letter of the reected items, groundsfor reection and the necessity to remove themwithin seven days and shall supply a substitute.

!he Authority shall not be responsible for loss ordamage to the items after expiration of the periodspecied for their removal.

/rticle &&1

*f a supplier requests a repeat of the analysis of theitems reected for non2conformity withspecications or the approved sample and hisrequest is accepted, he shall bear the cost ofanalysis, unless the result is in his favor.

-+apter 8ig+teen

4ale of Mova3les

54


55/74

/rticle &

+ithout preudice to the provisions of Articles


56/74

its minutes to the authori&ed o"cial toapprove the awarding of the bid.

$d%*n case of public auction, the committeeshall, at the end of the auction, prepareminutes showing the bidding procedures,price of the successful bidder and theguarantee submitted by him and shall referits minutes to the authori&ed o"cial toapprove the awarding of the bid.

/rticle &&2

*f the bidding prices fall short of price estimates by

more than


57/74

/rticle &$$

!he successful bidder shall pay its value within tendays from the day on which he is notied of theawarding of the bid. *f he fails to pay, he shall benotied by a registered letter. *f he fails to paywithin fteen days from the notication date, his

guarantee shall be conscated and negotiationsshall be made with other bidders in sequence toreach the price of the successful bidder. *f saidprice is not reached, the tender shall be announcedagain.

/rticle &$"

After payment of the price of the items andmovables sold, the purchaser shall remove what hepurchased within a period not exceeding fteendays from the date of payment. *f he fails to do so,he shall be notied by a registered letter to removethem within a similar period, and if he fails toremove them, the guarantee submitted by himshall not be released until he removes them inaccordance with the provisions of Article of the

9aw. Ce may be required to pay storage fees.!he Government AuthorityGovernment Authorityshall not bear any responsibility for the loss ordamage to the items and movables sold, after theexpiration of the period specied for their removal.

/rticle &$'

Assistance of licensed intermediaries may besought to carry out public auction against acommission paid by the purchaser which does notexceed the customary commission and not morethan 8.


58/74

-+apter ineteenRules for Leasing and Investment of

Government Real 8states

/rticle &$1

Government authorities may lease or investgovernment real estates, whether lands orbuildings, that fall within their urisdiction, such ascommercial stores, residential buildings,advertiseadvertisement sites and sites of vendingmachine, automatic teller machines and others.

!he Government AuthorityGovernment Authorityshall determine the investment location ininvestment proects in coordination with the7inistry of 6inance ?epartment of 4tate Properties.

/rticle &$#

*n case of a maor investment proect or a proect

of technological and technical nature, leasing andinvestment shall be advertiseannounced inaccordance with the -ules and Procedures ofAnnouncing Public !enders, in addition to invitingrelevant investors and notifying the 4ecretariat ofthe 'ouncil of the 'hambers of 'ommerce and*ndustry.

/rticle &$,

!he Government AuthorityGovernment Authority,prior to announcing public tenders, shall preparedocuments, terms and specications of leasing andinvestment which shall include all informationrelating to bidding, such as general terms of thecontract, quantities and type of works,constructions and facilities to be erected on the

site as well as the period of the lease orinvestment.

58


59/74

/rticle &$

9ease or investment contracts may not beconcluded with persons boycotted in accordancewith the provisions of Article : of these-ules-egulations.

/rticle &$2

A Government AuthorityGovernment Authorityshall assess the minimum rent or returns ofinvestment in accordance with prevailing prices,taking into consideration factors a)ectingassessment of rent or investment returns based on

minutes prepared by a speciali&ed technicalcommittee formed by the Authority for thispurpose, of not less than three members inaddition to a member from the 7inistry of 6inance?epartment of 4tate Properties. !he assessmentshall be placed in a sealed envelope to be openedonly by the 'hairman of the 9ease and *nvestment#id (xamination 'ommittee in the presence of all

its members.

/rticle &"%

4ubect to the provisions of the 9aw and these-ules-egulations, government authorities mayconclude lease and investment contracts with eachother as well as with public institutions andcompanies owned by the 4tate or which the 4tate

owns not less than


60/74

Government AuthorityGovernment authorities may,after agreement with the 7inistry of 6inance,designate spaces on their premises for publicbenet associations and charities to carry on theiractivities or o)er humanitarian services.

/rticle &"$

9ease or investment o)ers shall be submitted onthe original documents received from theGovernment AuthorityGovernment Authority insealed2bids. !he bidder shall satisfy all terms of thelease or investment o)ered for public bidding.

/rticle &""

$a%!he bid shall be accompanied by a bankguarantee equal to


61/74

/rticle &"1

$a%Government authorities shall form acommittee of not less than three members inaddition to its chairman whose rank shall notbe lower than LGrade !welveM or itsequivalent to examine lease and investmentpublic bids. /ne of the committeeFs membersshall be from the 7inistry of 6inance. 4aidcommittee shall be responsible forexamination and analysis of bids and shallsubmit its recommendations to the o"cialauthori&ed to rest the bidaward the bid.

$b%!he decision forming the committee shall be

issued by the minister or head of theindependent agency or whomever hedelegates. !he committee shall bereconstituted every three years.

$c% !he committee shall carry out its duty andissue its recommendations in accordancewith the procedures specied for the #id(xamination 'ommittee in public tenders.

/rticle &"#

*f a public bidding is advertiseannounced but onlyone bid is submitted, the advertiseannouncementshall be repeated. *f still only one bid is submitted,the procedure for resting the bidawarding the bidshall be completed with the approval of the

authori&ed o"cial./rticle &",

$a%9easing may be carried out by public auction,either at the location of the real estate or onthe premises of the GovernmentAuthorityGovernment Authority. 4aidGovernment Authority shall form a

committee to conduct the auction, of not less

61


62/74

than three members including a memberfrom the 7inistry of 6inance.

$b%!he committee shall prepare minutesrecording the procedures of the bidding andthe highest bid and refer the minutes to the9ease and *nvestment #id (xamination'ommittee. *n public bidding, cash or bankdrafts may be accepted as guarantees.Awarding the bid shall be carried out inaccordance with 4ealed #idding -ules.

/rticle &"

*f a potential investor or lessee submits an o)er to

invest or lease a site not yet put for investmentand the Authority deems the investment or leasingof the site suitable, a tender shall beadvertiseannounced and the investor shall beinvited to submit his bid in accordance with thebidding terms. *f no other bids are submitted, thetender the advertiseshall be re2announced, and ifstill no other bids are submitted, the resting thebidbid shall be awarded in accordance with the

4ole #id Provision referred to in Article := of these-ules-egulations.

/rticle &"2

+hen determining the lease and investment term,the si&e of the proect and the returns to bereali&ed for the Authority therefrom shall be taken

into consideration, provided that the term does notexceed the following

$a%6ive years for leasing without investment.

$b%6ifteen years for sites the investment ofwhich requires constructions.

$c%!wenty years for maor investment proects,with the approval of the 7inistry of 6inance.

62


63/74

/rticle &'%

*f the investor or lessee withdraws after theawarding of the bid, his guarantee shall beconscated after notifying him by a registeredletter and the lapse of fteen days from thenotication date. 0egotiations shall be carried out

with the next bidders in sequence in order to reachthe price of the successful bidder. *f such price isnot obtained, the tender shall be re2announced.*f the investor or lessee withdraws after theopening of the sealed2bids and before awarding thebid, a portion of his guarantee equal to 8E of thetotal bid value shall be conscated.

/rticle &'&

!he annual rent shall be fully paid within ten daysfrom the beginning of each contracting year.Agreement may be made to pay the rent of theyears specied in the contract in one payment.

/rticle &'$

Prior to concluding lease or investment contractswhose annual returns amount to fty thousandriyals or more, the 7inistry of 6inance shall beprovided with a copy of such contracts for review.

/rticle &'"

!he guarantee submitted by the lessee or investorshall not be released until the expiration of thecontract term and the hand2over of the real estatein accordance with the contract terms.

/rticle &''

63


64/74

!he lessee or investor shall bear the cost of water,electricity, telephone and services provided by theAuthority, such as cleaning, maintenance andsecurity. *f the site is connected with the servicesof the leasing Authority and it is not possible toseparate such service from those of the publicfacility, the Authority, when o)ering the site for

investment or lease, shall assess the cost of theseservices and provide for them in the bidding termsupon announcement as well as in contract terms soas to be paid along with the annual rent or monthlyas the case may be.

/rticle &'1

*f leasing or investment is in return for constructingfacilities whose ownership reverts to theGovernment AuthorityGovernment Authority afterthe expiration of the contract term in accordancewith provisions of Article =8 of the 9aw, then inaddition to the rules governing lease andinvestment referred to in these -ules-egulations,the following shall be taken into consideration

$% !he Government AuthorityGovernmentAuthority shall set the terms,specications, plans and quantity of workso)ered for investment.

$8% !he Authority shall approve the designsand the detailed architectural plans of theproects prepared by the investor. *t shallhave the right to oversee execution wholly

or partly.$:% !he investor shall maintain the proect and

make repairs therein until handing theproect over upon the expiration of theinvestment contract.

$;% !he Authority shall receive the proectcompletely upon expiration of theinvestment term. !his shall include

64


65/74

facilities, buildings, xtures, furniture aswell as movable equipment and machinery.

/rticle &'#

/wnership of all facilities constructed by the

investor or lessee shall revert to the leasingAuthority which may instruct him to remove themat its discretion. +hat is invested in accordancewith provisions of Article =8 of the 9aw shall beexcepted, unless executed in violation of the termsand specications approved by the Authority.

/rticle &',

!he Government AuthorityGovernment Authoritymay rescind the contract and conscate the bankguarantee and claim compensation from theinvestor or lessee for damage in any of the

following cases$% *f the investor or lessee fails to perform his

obligations which require the provision of acertain service or the construction of somefacilities for the GovernmentAuthorityGovernment Authority after thelapse of three months or E of theinvestment or lease term whichever is

longer, without ustication acceptable tothe Authority.

$8% *f he fails to pay the rent within thespecied period after notication and thelapse of fteen days from the noticationdate.

$:% *f he uses the site for an activity other thanthe activity agreed upon in the investment

or lease contract or assigns it to a thirdparty without the written approval of the

65


66/74

Authority, after being notied to rectify thesituation and the lapse of fteen days fromthe notication date.

$;% /ne of the reasons provided for in Article


67/74

First0 /nnouncement of ames of Bidders

/rticle &1%

Government authorities shall announce the namesof companies and establishments which havesubmitted bids in public tenders and procurements

in accordance with the following$% !he Authority shall prepare a notice board in

the department in charge of tenders andprocurements in a prominent place toannounce the names of companies andestablishments which have submitted theirtenders. 4aid names shall also be announcedin the website of the Authority. !he

announcement shall remain posted for notless than fteen days.

$8% !he announcement shall be made afteropening the sealed2bids and disclosing theprices, provided that the announcementincludes the following

$a% 0ame, address and line of business ofthe bidding company or establishment

and the total value of the bid.$b% 0ame of tender, purpose and place of

execution.

$:% Announcement is not required for works thecost of which is one hundred thousand riyalsor less.

4econd0 /nnouncement of Results of Pu3licTenders and Procurements

/rticle &1&

Government authorities shall announce the resultsof public tenders and procurements carried out bythem if their value exceeds one hundred thousand

riyals in accordance with the following

67


68/74

$% Government authorities shallannounce statistics on the results of tendersand procurements whose value exceeds onehundred thousand riyals in accordance withits records of tenders and procurementsevery sixty days at most. !he data shallinclude the following

$a% !ype of contract and works awarded.

$b% 0ame and address of the Authorityawarded the contract and the addressof the contact person to obtaininformation about the contract.

$c% Place of execution of the contract, dateof concluding it and its total value.

$d% 0ame, address and line of business ofthe company or establishment whichwas awarded the contract

$8% *nformation of each contractshall be announced separately.

$:% !he Authority shall choose thesuitable means of announcement innewspapers and other media.

advertiseAnnouncement shall also be madein the website of the Authority in addition toproviding the 4ecretariat of the 'ouncil of'hambers of 'ommerce and *ndustry withan electronic copy of theadvertiseannouncement.

$;% Procurement of arms,ammunition, military equipment and

ordnance as well as procurements relatingto internal security and national defenseshall be exempted fromadvertiseannouncement referred to in thisArticle and Article


69/74

-+apter Twent6 .neProcedures of t+e -ommittee for Review of-ompensation and Bo6cott of -ontractors

/rticle &1$

!he work of Lthe committee for review of claims forcompensation and boycott of contractors andsuppliersM shall be regulated in accordance withthe following procedures

Firstl6 -onditions for Review of-ompensation -laims0

$% !he 'ommittee shall have urisdiction toreview compensation claims submitted inaccordance with the contracts concludedunder the Government !ender andProcurement 9aw and these-ules-egulations.

$8% A claim for compensation may not bereviewed except after the execution of thecontract and the nal hand2over of theworks.

$:% !he compensation claim shall besubmitted rst to the contracting Authority.*f the claimant is not satised with the

decision of the Authority or sixty days havelapsed from the date of submission of theclaim to the Authority, accompanied bycomplete supporting documents, withoutdeciding on it, said claim may besubmitted to the committee.

69


70/74

4econdl6 /dministrative Formation of t+e-ommittee;s .@ce

!he administrative formation of the secretariat ofthe committee and the required employees shall

be approved pursuant to a decision by the 7inisterof 6inance based on a recommendation by thechairman and members of the 'ommittee.

T+irdl6 Duties of t+e 4ecretariat of t+e

-ommittee0

$%Providing technical and administrativesupport to the committee, organi&ing itsmeetings and recording its minutes.

$8%'oordination between the committee andother authorities, receiving clients, deliveryof notices and decisions, recording ofincoming business les and referring them to

the chairman of the committee.

$:%!he secretary of the committee shall attendthe meetings of the committee and preparemeeting minutes, showing the date, placeand time of each meeting as well as itsproceedings.

$;%-ecording names of boycotted persons in aspecial register if the decisions issuedagainst them are nal, and preparing draftsof circulars to be signed by the 7inister of6inance to notify government authorities ofthe boycott decisions.

$


71/74

Fourt+l6 Procedures of t+e -ommittee0

$% !he 'ommittee shall obtain information anddocuments relating to the case. !hechairman of the committee shall equallydistribute cases among committeemembers, including himself, for review. Ce

shall discuss such cases with the rest of thecommittee members and issue theappropriate decision.

$8% !he 'ommittee may request anyinformation or documents relating to thecase. *t may summon representatives ofrelevant government authorities, hearwitnesses and conduct questioning, and

hear contractorsF defense and grievances inperson.

$:% !he 'ommittee may not issue the decisionbefore summoning the person concerned orhis agent in person to hear his statementsand present his defenses. !he personsconcerned shall be notied of the time ofthe session by an o"cial letter to be sent to

their addresses as recorded with the'ommittee or through the Governor or byany suitable means. *f a person fails toattend for the third time after being notiedtwice, the committee may issue a decisionagainst him in absentia.

$;% !he compensation claim shall be stricken o)if the claimant fails to attend for the thirdtime after being notied thereof or after thelapse of three months from the date ofabandoning his claim and failure to submitdocuments supporting his claim. !he claimmay not be re2submitted except for a

ustication acceptable to the 'ommittee. *fthe claim is re2submitted and he fails toattend after being notied twice, the claimshall be stricken o).

71


72/74

$% *f it appears to the 'ommittee during review

of a claim that there are indications of acrime punishable by law, it shall refer it tothe competent authority and proceed withthe claim unless the 'ommittee nds that itcannot review the claim until the other caseis decided.

$@% *f the claimant in a compensation claimseeks the assistance of an expert to provide

opinion in technical or accounting aspects,the 'ommittee may, at its discretion,comply with his request and refer thepapers of the case to any experts it deemst at the expense of the claimant.

$H% 'ommittee decisions shall be reasoned andshall include recitals and facts. !hedecisions shall provide for the right of either

party to the case to obect before the #oardof Grievances within sixty days from thedate of notication of the decision.

$%'ommittee decisions issued against thePublic !reasury shall not be nal until a nal

udgment is rendered by the #oard ofGrievances.

$%!he decision shall be communicated to the

parties of the claim by an o"cial n