Amongst its main purposes, Saudi Tender Law aims at promoting ’integrity and competitiveness, maintain equality, ensure fair treatment of bidders, in fulfilment of the principle of equal opportunity.’

Are you a foreign contractor considering participating in government tenders in Saudi Arabia?

Engaging in public procurement in the Kingdom of Saudi Arabia offers a wealth of opportunities, but it also comes with specific regulatory requirements that you need to be aware of. Navigating the legal framework effectively can be the key to getting government contracts.

The Performance Bond is a guarantee which secures the Employer from the risk of possible breaches by the Contractor during the execution of the works. It can be risky for the Contractor for several reasons and above all because it is a guarantee which remains in force for the entire life of the construction project.

In international construction projects, it is rather standard that the Contractor starts the mobilisation/procurement just after an advance payment has been paid by the Employer. But how does it work and how can you negotiate it at your best?

In construction contracts, disputes are extremely  frequent  especially in international projects. The claiming is almost inevitable and controversies concerning extra works,  extension  of time, liquidated damages for (alleged or actual) delay of the Contractor, or for the calling of the bonds issued by the Contractor for (alleged or actual) default from the Contractor itself are almost the ordinary course of a project.

The Bid Bond guarantees the Employer that the bidder will sign the contract, if awarded, or will comply with other specified obligations (such as to issue other bonds as provided in the bidding documentation). They are rather frequent, especially in mid/big size projects.