Licensing procedure

The Contractor Classification System and its regulations are key reform tools. It is one of the main standards used in selecting contractors for government project awards. The system aims to assess contractors’ financial, technical, administrative, and execution capabilities to place them in an appropriate classification grade and field. It is also closely linked to the Government Tenders and Procurement Law and its executive regulations.

Currently, the classification service does not include any fees or invoice generation within the Balady platform. However, there may be fees outside the platform for obtaining the credit rating or technical rating, and these vary depending on the sector, size of the entity, and the path selected by the beneficiary.

The criteria include:

Meeting the financial standards of the entity.

Meeting the technical standards of the entity.

The user submits a modification request through the “Modify Classification Grade and Field” service. The system processes the request and issues a new certificate upon meeting the requirements:
- Modifications are allowed once every 90 days starting from day 91 after the certificate is issued and up to 90 days before its expiration, or after 45 days from the last modification.
- A new version of the same certificate is issued with the same certificate number and expiry date (only the version number, activities, and classification grade per field are updated).
- A new financial and technical evaluation is required.

It is a service provided by the Ministry of Municipal and Rural Affairs and Housing that aims to support and qualify private sector entities and enhance their capabilities. This is done by meeting a minimum set of financial, technical, administrative, and operational standards to ensure the entity’s ability to deliver services in cities across the Kingdom by obtaining a Classification Certificate.

The user submits an update request through the “Update Classification Certificate” service or via the “My Requests” service, based on the beneficiary's needs:
1. Update Certificate Information: Allows updating the establishment name and owner name on the certificate.
2. Update Contact Information: Allows updating personal or establishment contact details.
3. Update Activities: Allows updating the activities reflected on the classification certificate (activities are retrieved based on the contractor's classified field).
A new certificate is issued with the same certificate number and expiry date in case of type 1 updates.

When the user clicks the “Request Contract with Office” button, the system redirects the user to the Saudi Council of Engineers to initiate the contract. Only engineering offices appear in the search results.

A contractor who is not classified cannot have their offer accepted, even if it results in savings for the public treasury. Article (3) of the Contractor Classification Law states: “Ministries, government agencies, and entities with legal personality may not accept any offer or bid for a project subject to classification unless the contractor is classified, and the project falls within the field and grade for which the contractor is classified.” Article (16) of the Executive Regulations of the Government Tenders and Procurement Law also requires bidders to adhere to the classification field and financial limits of their grade, otherwise their offer will be rejected.

The plots must be merged first, after applying for another cadastral decision.

You can amend the building permit after issuance by applying for the service of adding and amending building components.

You can visit the following link: https://balady.gov.sa/Services/Terms?id=23

It is possible to apply for the service of deleting a duplicate license through the support services.