SCA Launches Electronic Standard Contracts

Minister of Commerce Dr. Majid bin Abdullah Al-Qasabi and Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail launched SCA's Standard Contracts initiative today.

Al-Qasabi chairs the supervisory committee of the National Program to Combat Commercial Concealment, while Al-Hogail oversees the Saudi Contractors Authority.

In the presence of Board members, SCA Secretary-General Eng. Thabet bin Mubarak Al-Suwaid outlined the initiative's objectives and its links to Saudi Vision 2030. It aims to improve quality of life and urban services, raise contracting service standards, reduce construction disputes and strengthen transparency.

The initiative provides concise, easy-to-use electronic contracts covering the legal and technical needs of contractors, project owners and subcontractors.

Legal provisions clearly define each party's obligations, payment methods and delay penalties. Technical provisions specify materials, their requirements and the correct construction methods based on manufacturers' instructions or engineering standards.

Users select from electronic options. An accompanying schedule sets out conditions, including payments linked to work completion.

The contracts aim to reduce delays caused by disputes, ease pressure on the courts and lower the cost of financial and contractual disagreements. They also make contracting, payment and work guarantees fully electronic, using international best practices.

SCA launched 25 building contracts, structured to give owners and contractors flexibility. They include full construction, structural works, plumbing, electrical work and painting, as well as additional services such as audio systems, gardening and irrigation.

The contracts will be available to all contractors registered with SCA. Contractors can create an agreement through their Muqawil account and enter the project owner's civil ID number. National Single Sign-On verifies identity and helps confirm the parties' legal capacity and representation.

Standard Contracts is one of 22 initiatives overseen by the Ministry of Municipal and Rural Affairs and Housing and delivered through SCA. They support Saudi Vision 2030 by building a vibrant contracting sector, strengthening economic development and international competitiveness, and creating an attractive investment environment.