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ARTICLE · 27 DECEMBER 2019

New Saudi Procurement Law Will Create Favourable Market For Construction Projects In 2020

2020 begins just a month into the Saudi Government's new Government Tenders & Procurement Law (GTPL), which came into effect on 1 December 2019,...

Saudi ArabiaGovernment, Public Sector

2020 begins just a month into the Saudi Government's new Government Tenders & Procurement Law (GTPL), which came into effect on 1 December 2019, and government and contractors will be keeping a close eye on how the law works in practice in the market over the next year.

Foremost among the changes in the GTPL, which applies to all appointments by government entities,  are the new provisions for centralised tendering and contracting. These provisions mean a designated Central Entity may request tenders for works it deems to be required by more than one government entity, and engage contractors / consultants on the basis of framework agreements or its own contract forms. This increased focus on centralised processes is designed to promote greater transparency, predictability and efficiency in tendering.

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