Rights of tenderers and contractors under Saudi public procurement contract regulations: a comparative study with England and Wales

• Main Author: Alhudaithy, Ibrahim Mohammad
• Published: Durham University 2006
• Subjects: 346.538023
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.550082

This thesis is a comparative study in which the rights of tenderers and contractors and related procurement regulations are discussed and compared under Saudi public procurement contract regulations and those of England and Wales. This thesis does not aim to be a comprehensive comparative study, but presents examples to illustrate the issues under discussion. A central aim of the study is to consider whether Saudi public procurement contract regulations are suitable to protect the rights of tenderers and contractors and to solve their problems in the rapid development of the country. Is the Purchasing Law, in particular, able to cover the rapid development in procurement and the economy in Saudi Arabia and the world? This question is asked in order to examine the weaknesses of current procurement regulations and to explore procurement claims that the Purchasing Law fails to address tenderers' and contractors' rights and concerns. Many criticisms have been raised regarding Saudi public procurement contract regulations, especially the Saudi Purchasing Law. Although the Saudi government has called for the procurement sector to play a greater role in national development, the Purchasing Law does not support this aim. It has remained unchanged since it was enacted in 1979, despite rapid economic changes in the country. Contractors, traders, banks, and Saudi Chambers of Commerce have complained that they are too constrained by the provisions of the Purchasing Law. The ten chapters of this thesis examine the rights of procurement tenderers and contractors throughout the procedures to prepare and award a public procurement contract. In addition to identifying the principles of procurement regulations, this study investigates the rights of tenderers and contractors from the first steps of tendering procedures to the awarding of the contract and afterwards. Once the contracting authority selects a successful contractor this study highlights his rights to obtain his financial payment and to obtain remedy if the contracting authority breaches its contractual obligations. The study examines case law, procurement regulations, circulars and governmental procedures in procurement. The study results indicate that Saudi public procurement contract regulations in general and the Purchasing Law in particular are inadequate to keep pace with development requirements in the country. More specifically, the findings show that current Saudi procurement regulations are in fact obstacles to the development of the procurement sector, and a main reason for contractors' unwillingness to enter the governmental procurement market.