Parties Benefits From
Contractors License and Classification

Gaining a Contractors license in Saudi Arabia is essential for any company or establishment wishes to work in the sanitation field as a sewer contractor. The reason is to be "independence": meaning that you are not limited to a specific area, but you can bid for various parties in different sectors (public and private).

Some countries like Saudi Arabia requires some experience (you can grant a work permit for a specific period of time), and three balance sheets before you can apply for the license. Other countries do not allow unlicensed entities to do any construction work before they obtain the required certificates.

License (Classification):
It is an indication to discover the capacity and competence of the company in line with its self-potential matters (Financial, Technical, Administrative and Operational).

Main Functions:
1) To identify areas and degrees of classification and financial limits, and develop it as the need arises.

2) To Lay the foundations of a unified scheme and follow the appropriate method for classification in different grades and disciplines through applying the common standards.

3) To prepare the statistical and classified list for entrepreneurs.

4) To issue the "Classification" certificate, by areas and by grades.

Main objectives:
To evaluate the contractor's ability from different aspects, such as "Financial, Technical, Administrative and Operational" related to their field and competence to provide qualified contractors in the various fields.

Benefits:
Businesses in general, benefits from the classification services and mostly the public sector for mastering of work. Also, who wishes to benefit from the classification services from the private sector in specific, and the construction sector in general, can be seen through the following points:

A) The construction sector in general:
1) To regulate this profession, and develop controls and standards for classification.

2) Improve the performance and effectiveness and productivity of the local construction sector, which includes implementation, operation, maintenance, subsistence and mainstreaming the principle of specialization in this business.

B) Projects Owners in public and private sector:

1) To provide a qualified entities in various fields and specialties.

2) Prepare a detailed list.

3) Broaden the base of equal competition among the qualified ones, and thus reduces the cost of performing of projects.

4) They must implement projects according to the specifications agreed upon in the time limit and to preserve grades classified.

C) Contractors:
1) Who gain a certificate from an official accredited to the government and other agencies reflect their abilities and potential.

2) Protect them from unequal competition by identifying the areas and levels of classification for each one.

3) Prevent them from performing a work more than their abilities and potential, to avoid failure in performing of projects.

4) Urge them to the continued development of their business through the reclassification process, and to be keen on developing their abilities.

5) They should establish their businesses on a proper base through achieving the requirements of the classification.
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