Government Contract Lawyer in Saudi Arabia After a Tender Award: Your First 30 Days
Updated: Oct 6
A tender award in Saudi Arabia starts a legal clock: your company has 15 working days to submit a performance bond of 5% of the contract value, and every obligation signed after that carries a penalty. Companies that bring in a government contract lawyer in these days start the project with a contract they understand and risks they have priced.
Why legal support becomes urgent after award
Before award, the risk is losing the bid. After award, the risk is financial: a bank guarantee that can be called, delay penalties of up to 6% on supply contracts and 20% on other contracts under the current law, and work withdrawn and completed at the contractor's expense. In private-sector tenders the terms can be harsher, because the contract alone sets the limits.
Which law governs your contract: the current one or the new one?
The new Government Tenders and Procurement Law was issued by Royal Decree M/76 and published in the Official Gazette (Umm Al-Qura) on 4 September 2026. It takes effect 120 days after publication, in early January 2027. Until then the current law, issued by Royal Decree M/128, continues to apply.
Tenders launched before the new law takes effect remain governed by the current law, even if the contract is still being performed after January 2027, although the Minister of Finance may apply some provisions of the new law to them. A tender awarded to you today is therefore governed by the current law.
Delay penalty on non-supply contracts: up to 20% under the current law, up to 15% under the new law. On supply contracts, up to 6% under both.
Increase of the contractor's obligations: up to 10% under the current law, up to 20% under the new law. Reduction up to 20% under both.
Standstill period before signing: 5 to 10 working days under the current law, 3 to 10 under the new law.
Performance bond: 5% within 15 working days under both.
What a lawyer does in the first 30 days
First days, standstill and challenges: monitor the standstill period (5 to 10 working days under the current law) and respond to any grievance a competitor files against the award.
Days 1–15, performance bond: review the guarantee wording with the bank, its validity and its release or reduction terms.
Before signing, contract review: check the contract against the tender documents and your bid, and flag risks that were not priced.
Days 15–30, contract chain: draft subcontracts and supply agreements that mirror your obligations, and obtain the written approval required for subcontracting.
Before mobilisation, paper trail: set up templates for notices, extension requests and change orders. An undocumented claim is a lost claim.
Call a lawyer immediately if
You received the award notice and nobody has reviewed the contract.
The bank is asking for changes to the guarantee wording.
The entity wants work to start before the contract is signed.
The project depends on a subcontractor or foreign supplier.
This is your company's first or largest government contract in the Kingdom.
FAQ
How long do we have to submit the performance bond?
15 working days from the award notice, at 5% of the contract value, with limited exemptions. This rule is the same under the current law and the new law.
When does the new Saudi Government Tenders and Procurement Law take effect?
120 days after its publication in Umm Al-Qura on 4 September 2026, which is early January 2027. Tenders launched before that remain governed by the current law.
Can a Saudi government contract be negotiated before signing?
Government contracts use standard forms with little room to amend. The review tells you what to price, insure and pass down to subcontractors. Private-sector contracts are far more negotiable.
Do you serve projects outside Riyadh?
Yes. Mahmoud Adel Al-Thumali Law Firm has offices in Riyadh, Jeddah, Taif and Khobar and serves other Saudi cities remotely.
Won a tender? Book an appointment and have your award notice and tender documents ready for an initial risk assessment.
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