Saudi Ministry Approves New Contractors Classification System
The Minister of Municipal, Rural Affairs, and Housing, Majed Al-Hogail, has approved an amendment to the Executive Regulation of the Contractors Classification System.
This new regulation replaces the previous one issued in November 2021.
As reported in the latest issue of the official newspaper Umm Al-Qura, the new regulation stipulates that the classification certificate will be issued electronically.
Project owners are required to verify the authenticity of these certificates through the Ministry’s website.
Article 4 of the regulation outlines that the areas, activities, and grades of classification will be determined, modified, and updated by a ministerial decision.
The classification will cover various sectors, including construction and building, operations and maintenance services, telecommunications and information technology, nutrition and catering, exhibitions and conferences, and real estate development.
These fields and activities will align with the National Guide for Economic Activities.
The contractors’ classification certificate will be issued for the relevant field and activity or fields and activities along with the deserved grade, based on available information, data, and the points achieved in the evaluation. The certificate will be valid for two years.
Contractors are required to maintain commercial books and documents that verify the accuracy of their financial position statement (balance sheet) and income statement (profit and loss account) for the latest year, certified by a licenced accountant and filed in the programme.
These records should be well organised and in Arabic. Contractors operating within the Kingdom must adhere to the terms and conditions stipulated in the Commercial Book System.
Article 9 states that contractors wishing to reclassify can submit a request to the agency within 90 days before the expiration of their current certificate.
