Amended Contractors Classification Legislation rules set standards for dividing main initiatives  

Saudi Gazette report

RIYADH — Minister of Municipalities and Housing Majid Al-Hogail has accepted new amendments to the manager rules of the Saudi Contractors Classification Legislation. The amendments grant the contractor the power to divide the venture in response to divisible areas, topic to particular circumstances, together with that the venture worth should be a minimal of SR600 million and that the worth of the half to be divided should not be lower than SR75 million.

Beneath the amended rules, requests for classification, reclassification, improve, addition, deletion, or modification should be determined inside not more than 60 working days after the contractor completes all necessities. Requests for extension of classification certificates validity ought to be processed inside 10 working days.

The amendments specify six circumstances beneath which contractors’ experience isn’t counted in implementing initiatives. These embrace circumstances beneath which the contract signing date precedes the industrial registration date, or if the venture’s scope doesn’t fall inside the contractor’s classification scope. These embrace circumstances beneath which the venture is withdrawn from the contractor or it’s confirmed that the contractor isn’t concerned in venture implementation. The amendments additionally embrace circumstances beneath which approval for subcontracting isn’t supplied or the monetary restrict for permitted work is exceeded, or the required paperwork and knowledge are usually not submitted.

Beneath Article 6, a contractor’s classification certificates is issued for the related area and exercise and the suitable grade, primarily based on out there data, knowledge, and analysis factors. In keeping with the amendments, classification certificates can be issued electronically, and that the proprietor should confirm its validity via the ministry’s web site. The validity might be prolonged for a single interval of 90 days. The contractor has the proper to request an modification to his certificates, whether or not by elevating the grade or deleting the exercise, inside 90 days of its issuance.

The Ministry’s Company for Regulating Metropolis Operators might cancel a contractor’s classification request if necessities are usually not fulfilled inside 90 days after notification. The rules emphasize the contractor’s obligation to replace his knowledge if any authorized change happens to his standing within the industrial register inside 30 days. He additionally has the proper to object to classification choices earlier than the competent committee inside 60 days, after which to file a grievance earlier than the Administrative Courtroom.

It’s noteworthy that the Saudi Contractors Classification is a system carried out by the Ministry of Municipalities and Housing that categorizes contractors primarily based on their monetary, technical and administrative capabilities. By means of an analysis course of, contractors obtain a classification grade from 1 (highest) to five (primary), which determines the dimensions and kind of presidency and main initiatives they’re certified to undertake. The classification certificates serves as a compulsory requirement for taking part in authorities tenders.

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