Article (113) of the Implementing Regulations of the Government Tenders and Procurement Law sets out, except for fixed profit margin contracts, the provisions for adjusting contract prices upward or downward upon changes in customs tariffs, fees or taxes, or changes in the prices of materials, services or contract items after the bid submission date, subject to conditions specified in the article. These conditions include that the price change results in an increase in the total contract cost exceeding (3%), while compensation for changes in customs tariffs, fees or taxes is made in the amount of the change without being restricted by this percentage. The difference is deducted from the contractor when fees, taxes or item prices decrease, unless the contractor proves that it paid them at the rates applicable before the reduction. The article also sets out the repricing mechanism and sources, and the procedures and timelines for reviewing and deciding on adjustment requests.
Source: Umm Al-Qura (Official Gazette) — Source publication date: 2026-09-25