The conditions for classifying contractors in Saudi Arabia, the new classification 1443, are specified in the executive regulations and the approved classification system. These conditions aim to verify that the contractor meets the minimum requirements that qualify him to carry out his work. Classification requests and inquiries about the classification of companies.
Classification of contractors in Saudi Arabia
It is imperative for contractors to obtain classification certificates in the Kingdom of Saudi Arabia in order to be able to carry out their various works to the fullest extent. Submitting paperwork for classification takes a long time compared to electronic applications.
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Conditions for classifying contractors in Saudi Arabia, new classification 1443
The following conditions and requirements must be fulfilled in order for the contractor to submit applications for the classification certificate electronically in 1443 AH:
- Provide the following documents:
- A certificate from the owner of the institutions that own the projects implemented by the company or the projects being implemented outside the Kingdom.
- An analytical statement of the revenues and expenses of private sector projects after their approval by a certified public accountant.
- Commercial registry certificate, statutory license certificate, or both certificates with valid validity.
- The notarized and notarized memorandum of association of the company, with any amendments made to the contract.
- Clearances or permits for projects implemented for the benefit of the private sector.
- An original copy of the company’s balance sheet with its profit and loss account statement for the previous three years, with both certificates being accredited and certified by one of the licensed chartered accountants, for companies that have been licensed for more than three years.
- A budget of at least one year for companies that have not been licensed to practice contracting for three years.
- Contracts for projects that have been implemented by the contractor or are currently being implemented within Saudi Arabia or any of the Gulf countries.
- Submit a classification request through the Ministry of Municipal and Rural Affairs and Housing website.
Contractors classification degrees in Saudi Arabia 1443
Contractors in the Kingdom of Saudi Arabia are classified into five degrees based on many factors, in order to determine the projects and contracts that the contractor can undertake according to the system in force in 1443 AH, and the following are the details of the new classification factors.
Standards for Classification of Contractors in Saudi Arabia 1443
Contractors are classified according to the new system for the year 1443 AH as follows:
- The financial capacity of the contractor according to its financial statements.
- The technical, administrative and executive ability of the contractor.
- The total number, type and value of projects implemented by the contractor.
Registration in the contractor classification portal 1443
Registration on my gateway to classify contractors for the year 1443 AH is as follows:
- Go to my gate “from here” directly.
- Click on the option to create a new account.
- Write the Saudi ID number, then specify the date of birth.
- Enter the security code, then click the Confirm button.
- Type the code and then click on the Verify icon.
- Follow the instructions until you finish creating the account.
Contractors classification site login 1443
We can log in to my country portal to classify contractors in 1443 AH as follows:
- Go to my portal “from here” directly.
- Enter the ID number, then enter the password.
- Enter the code and then click on Login.
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Obtaining contractors classification certificate 1443
The following are the steps for obtaining the contractors classification certificate for the year 1443 AH in Saudi Arabia:
- Visit my portal “From Here” directly.
- Click on the start service icon.
- Agree to the undertaking and then click on the Start Service button.
- Complete the login registration at the Baladi portal.
- Continue adding data, uploading attachments, and following up.
- Submit the application after completing the data entry.
Inquire about the classification of contractors in Saudi Arabia 1443
The following steps are to be followed to inquire about the classification of contractors in Saudi Arabia in 1443 AH:
- Go to my gate “from here” directly.
- Choose to search by classification certificate number.
- Enter the certificate number in the provided field.
- Click on the green search button.
- View the contractor’s classification status.
New Contractors Classification System 1443
The following are the details of the new contractor classification system in Saudi Arabia for the year 1443 AH:
- Article One: The following terms, wherever they appear in this system, shall have the meanings indicated before them, unless the context requires otherwise:
- The Ministry: The Ministry of Municipal and Rural Affairs and Housing.
- Minister: The Minister of Municipal and Rural Affairs and Housing.
- The System: The Contractors Classification System.
- Regulations: the executive regulations of the system.
- Classification: Assessment of contractor capabilities: financial, technical, administrative, and operational; To place him in the field, activity, and degree due in accordance with the provisions of the Law and Regulations.
- Contractor: A natural or legal person who is legally authorized to undertake – individually or jointly – to implement a contract in one of the areas specified in the Regulations.
- Scope: The type of work in which the contractor is classified.
- Activity: a type of subsidiary business in a field.
- Score: The score a contractor gets when grading.
- Standard: The set of items used for classification.
- Article Two: The Ministry, in coordination with the relevant authorities, undertakes the classification, issuing, amending, suspending and canceling classification certificates, in accordance with the provisions of the system and the regulations, provided that the classification application or its amendment is decided upon within a period specified by the regulation.
- Article Three: Government agencies, bodies, institutions and bodies with public legal personality may not award or accept any offer or bid for any project subject to classification unless the contractor is classified, and the project falls within the field, activity, and degree to which the contractor has been classified.
- Article Four: The fields, activities, and degrees of classification are determined and amended by a decision of the Minister, in accordance with controls determined by the regulations, provided that the identification of classification fields and activities is based on what is stated in the National Directory of Economic Activities.
- Article Five: The financial limits for each degree are determined and amended by a decision of the Minister after agreement with the Minister of Finance and the Minister of Economy and Planning.
- Article Six: The contractor shall be classified in the degree he deserves in one or more of the classification fields or activities, in accordance with the following criteria and conditions with any other criteria or conditions specified by the regulation:
- Financial capacity: the financial statements.
- Technical, administrative and executive capacity: organizational structures, administrative and technical cadres.
- Total number, type and value of projects.
- Article Seven: The contractor may request the amendment of his classification certificate by raising, adding or deleting any field or activity from it, provided that his request is supported by information and data that support this, in accordance with the conditions specified by the regulation.
- Article Eight: The Minister or whomever he delegates shall issue a decision to classify the contractor in the field, areas, activity or activities, and the degree to which he is entitled, based on the available information and data, and he shall be granted a certificate according to the period specified in the regulation.
- Article 9: If two or more contractors jointly implement a project, each of them must be classified in the field of project implementation and at least one of them must be classified in the field and the degree required for its implementation, and the degree of classification of the remaining joint partners must be the same degree required for the implementation of the project or only one degree lower.
- Article Ten: If there is any legal change in the contractor’s status that affects his classification, he must submit a request to amend the classification certificate in accordance with the cases specified by the regulation.
- Article Eleven: The contractor licensed to work is classified according to the foreign investment system, according to the procedures in force in classifying the Saudi contractor. The Council of Ministers may make an exception according to the regulations it sets for this.
- Article Twelve: The Ministry shall charge a fee for the services it provides in accordance with the provisions of the Law, provided that these services and the financial compensation for them shall be determined in agreement with the Ministry of Finance.
- Thirteenth Article: Governmental agencies, bodies, institutions and bodies with public legal personality shall provide the Ministry with the information, data and notes it requests about contractors for classification purposes, as well as projects implemented by contractors or under implementation, as specified by the regulation.
- Fourteenth Article: Inspectors – named by a decision issued by the Minister – shall jointly or individually detect and prove violations of the provisions of the Law and Regulations, review records and information, and obtain copies of necessary documents. The regulation defines the rules and procedures for their work.
- Article fifteen: Article fifteen stipulates the following items:
- Without prejudice to any more severe penalty stipulated in any other law, anyone who violates the provisions of the law or regulation shall be punished with one or more of the following penalties:
- Rating downgrade.
- Suspension of the classification, and a ban on renewing it for a period not exceeding five years.
- Classification cancelled.
- The Minister shall, by a decision, issue a classification schedule for violations and specify penalties within the limits stipulated in the system, taking into account the nature and severity of each violation, and the aggravating and mitigating circumstances thereof.
- Without prejudice to any more severe penalty stipulated in any other law, anyone who violates the provisions of the law or regulation shall be punished with one or more of the following penalties:
- Sixteenth Article: The following are the provisions of Article Sixteen of the new contractors classification system:
- Contractors’ objections to classification decisions, violations of the provisions of the Law and the Regulations, and to decide on them, and to approve the penalties stipulated in Article 15 of the Law, shall be handled by a committee or more consisting of at least three members, provided that one of them is a legal or legal specialist.
- The committee – stipulated in the first paragraph of this article – is formed by a decision of the Minister for a renewable period of three years.
- The regulation determines the rules and procedures for the work of the committee – stipulated in the first paragraph of this article – and the team supporting it, and the remuneration of their members.
- The committee’s decision – stipulated in the first paragraph of this article – may be appealed to the Administrative Court.
- Seventeenth Article: The Minister issues the regulation within ninety days from the date of publishing the system in the Official Gazette.
- Eighteenth Article: The system shall be published in the Official Gazette, and shall come into force after the lapse of ninety days from the date of its publication.
- Article Nineteen: The system replaces the contractor classification system issued by Royal Decree No. (M/18) dated 3/20/1427 AH, and cancels all provisions that contradict it.
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Download the list of contractor classification system PDF
Download the list of the new contractors classification system in PDF by following the following steps:
- Go to the category list page “from here” directly.
- Click on the document from the page.
- Right-click inside the list document.
- Click Save As from the drop-down menu.
- Choose a course to save, then click on Save.
All conditions for the classification of contractors in Saudi Arabia must be met, the new classification 1443 so that the contractor can issue the approved certificate through the website of the Municipal and Rural Affairs and Housing Authority, including: Submitting an analytical statement of revenues and expenses for private sector projects in addition to an original copy of the company’s budget with the submission of the companies’ contract and changes that occurred to him.