Extension of Time on Saudi Government Projects: Preparing the Request

In brief: On Saudi government projects, extension of time is granted under the Government Tenders and Procurement Law and its Implementing Regulations, read with the contract. The process is formal and document-heavy. A contractor that submits programme updates on time, notifies delays in writing as they happen and supports each request with a clear delay analysis is in a much stronger position.

The legal framework

Public works contracts in Saudi Arabia are governed by the Government Tenders and Procurement Law, issued by Royal Decree No. M/128 in 1440H (2019), and its Implementing Regulations. Many contracts are based on the standard public works contract issued under that law, and tenders and contract administration increasingly run through the Etimad platform.

Some giga-project developers and government-owned companies use their own forms, often based on FIDIC with heavy amendments. Before preparing an extension of time request, confirm which framework applies to your contract.

When the contractor can get more time

The law and the regulations allow the contract period to be extended in defined cases. These broadly include:

• additional work or variations instructed by the government entity;
• delay caused by the government entity, such as late handover of the site, late approvals or late payment;
• suspension of the work by the government entity for reasons not caused by the contractor;
• circumstances outside the control of the contractor, such as force majeure.

Delay penalties are applied if the contractor is late for reasons attributable to it, subject to the maximum set out in the regulations. A properly approved extension protects the contractor from those penalties.

What government entities expect to see

Extension requests are usually reviewed by the project consultant and then a committee within the government entity. In our experience they look for:

• A timely written request. Raise the delay in writing as soon as it occurs, and follow the notice period in the contract if one is specified.
• An approved baseline programme. The baseline should be accepted by the consultant and loaded in Primavera P6, in line with the contract’s scheduling specification.
• Regular updates. Monthly updates that show actual progress and the effect of each delay as it happened.
• Clear cause and effect. Evidence that the event delayed activities on the critical path and pushed out the completion date.
• Supporting documents. Letters, site handover records, approval dates, minutes of meetings and site diaries.

Choosing a delay analysis method

For a delay that is still happening, a time impact analysis is usually the clearest method. A fragnet for the event is added to the current programme update and the effect on the completion date is measured. Consultants on Saudi government projects generally accept this approach when the baseline and updates are reliable.

Where the request is made after the event, or the programme updates are weak, a windows analysis based on the monthly updates, or an as-planned versus as-built comparison, may be more appropriate. The method should be stated and explained in the request so the consultant can check it.

Common reasons requests are rejected or reduced

• the baseline programme was never approved, so there is no agreed starting point;
• programme updates were not submitted each month, or were submitted only as PDFs;
• the request describes the event but does not show its effect on completion;
• the contractor’s own delays during the same period are not addressed;
• the request was raised long after the event, with little contemporary evidence.

Practical steps for contractors

1. Get the baseline programme approved early and keep a copy of the approval.
2. Submit monthly updates in native P6 format with a short narrative.
3. Keep a delay register and raise each delay in writing when it happens.
4. Prepare a time impact analysis for each significant event.
5. Submit the extension request with the analysis and all supporting documents in one package.
6. Track the response and escalate in writing if the review stalls.

Disputes

If an extension is refused, the contractor’s options depend on the contract and the identity of the employer. Disputes under government contracts are generally heard by the Board of Grievances, while some contracts with government-owned companies provide for arbitration, for example under the rules of the Saudi Center for Commercial Arbitration (SCCA). In either case, the quality of the original submission matters.

This article is general guidance, not legal advice. The applicable law, the contract and the facts of each project decide the outcome.

Related: EOT claims consultants in Riyadh · P6 baseline programmes in Saudi Arabia · Solvix in Saudi Arabia