Analytical Study of the Reformation of the Saudi Public Procurement Contract Legal Framework and Its Success in Promoting the Saudi Construction Contractor Sector

Abstract

The construction contracting sector in Saudi Arabia has long faced challenges in tendering and executing Public Procurement Contracts (PPCs) due to inherent issues within the legal framework of these contracts. These challenges have led to project delays, stoppages, and cancellations, negatively affecting national development, contractor performance, and contractor-government relationships. In response to these problems, and as part of the broader Vision 2030 initiatives, the Saudi legislature introduced a new law for PPCs. This research critically examines the reforms to PPC legal framework, focusing on the former and current Government Tenders and Procurement Law (GTPL) from the perspective of construction contractors. It evaluates whether these reforms effectively address the contractor’s systemic challenges during the tendering and execution phases of PPCs. While recognizing the significant progress achieved under the current GTPL, this study offers targeted recommendations to address persisting issues and further enhance the legal framework of PPC, ensuring better alignment with contractor needs and sustained development in the construction sector.