Many business owners believe that winning a tender marks the end of the competition journey, and that the award decision means the project is ready for execution. In reality, the award represents the beginning of a new phase no less important than preparing the technical and financial proposal — as the company transitions from competition to contractual commitment and actual implementation.
After the award announcement, the company may need to submit a performance bond, complete regulatory approvals, sign the contract, prepare the project team, submit an implementation plan, and fulfill insurance and local content requirements — depending on the nature and conditions of the tender.
In this article, we review the most important post-award requirements in Saudi government tenders, with practical steps companies should prepare for to ensure a successful transition from winning to project execution.
First: What Does the Award Decision Mean?
The award decision is the government entity’s announcement of selecting the winning bid according to the competition procedures and approved evaluation criteria. However, it is important to distinguish between three things:
- Award Notification: Informing the bidder that their offer has been selected.
- Completing Contracting Procedures: Submitting the performance bond and completing required approvals and documents.
- Contract Signing: Concluding the binding agreement between the government entity and the winning company.
This distinction is important because the award decision does not necessarily mean the company can immediately begin executing works. Article (45) of the Regulations states that the award letter does not create a legal or financial obligation on the government entity until the contract is signed by all parties.
Second: Submitting the Performance Bond After the Award
One of the first procedures the winning company should prepare for is submitting the Performance Bond — a financial guarantee aimed at protecting the government entity and ensuring the contractor fulfills its contractual obligations.
According to Article (59) of the Government Tenders and Procurement Law, the winning bidder is required to submit a performance bond of 5% of the contract value within 15 working days from the date of being notified of the award decision. This deadline may be extended for a similar period according to the Regulations. Tender documents may also specify a higher percentage in legally permitted cases.
What happens if the company does not submit the performance bond?
Failure to submit within the statutory deadline may result in the preliminary guarantee not being returned and moving to the next offer. Additionally, failure to complete contracting requirements after a warning notice may lead to cancellation of the award decision and forfeiture of the performance bond. The performance bond should not be treated as a mere banking procedure — it must be included in the project’s cash flow and financing plan.
Third: Completing Regulatory Approvals and Signing the Contract
After submitting the performance bond, the government entity completes the required regulatory approvals and procedures for concluding the contract. The Implementing Regulations of the Government Tenders and Procurement Law were amended in an update published in Umm Al-Qura on June 5, 2026, including an update to Article (88) on contract signing procedures.
According to the amended text:
- The entity sets the contract signing date, not to exceed 30 working days from completing regulatory approvals.
- If the company fails to complete the required procedures without acceptable reason, the entity issues a written warning notice.
- If the company does not fulfill requirements within 10 working days of the warning, the award decision may be cancelled and the performance bond forfeited.
- If the entity does not conclude the contract within 35 working days of the performance bond submission, the winning bidder may notify their wish to withdraw, with consequences and timelines set out in the Article.
Important Notice: Work cannot begin before the contract is signed, per the amended Article (88). The company should not start supply or execution based solely on the award notification.
Fourth: Reviewing the Contract and Verifying Obligation Details
Before signing, the company should not limit itself to reviewing the contract value and duration. It must verify that all obligations in the contract align with the technical and financial proposal submitted during competition. It is best to review the contract from legal, financial, technical, and operational perspectives before signing — as some obligations may directly impact execution costs and project profitability.
Fifth: Submitting the Implementation Plan and Preparing the Project Team
After signing the contract, the company moves to the operational readiness phase, converting the winning technical proposal into a realistic implementation plan with defined responsibilities. Key actions include:
- Prepare a project management plan: Define execution phases, timelines, task distribution, required resources, a progress monitoring mechanism, and risk management plans.
- Appoint a project manager and team: Identify who is responsible for communicating with the government entity and ensure required professional qualifications and certifications are available.
- Complete licenses and permits: Site access permits, work permits, approvals from relevant authorities, and technical licenses related to the project type.
- Prepare equipment and materials: Verify supplier and manufacturer readiness, shipping and delivery schedules, conformity certificates, and inspection and testing requirements.
- Hold a Kick-off Meeting: To align the company and government entity on scope of work, timelines, communication mechanisms, reports, KPIs, responsibilities, and points of contact.
Sixth: Complying with Local Content Requirements
Local content requirements are an important post-award consideration, especially in government contracts that include mechanisms preferring national products or targeting local content ratios. Local content is not limited to purchasing Saudi products — it includes spending within the Kingdom through workforce participation, goods, services, assets, technology, and other national elements. Tender documents may include a target local content ratio, a minimum required percentage, or a gradual plan to reach the specified ratio.
What is required from the company after the award?
According to the Local Content and Small and Medium Enterprises Preference Regulations:
- Submit the local content gradual plan within 60 days of the award date, when this plan is required under the applicable mechanism.
- Submit periodic reports showing progress toward the target percentage, according to the conditions in the tender documents.
- Submit a final report showing the achieved local content percentage at contract completion.
Therefore, the company should develop a local content plan from the start of the project, identifying local supply sources, workforce, and services that can be relied upon — rather than waiting until the final stages of implementation.
How Does Edaaat Help You Prepare for Post-Award Requirements?
Winning a tender is an important step, but maintaining that achievement and turning it into a successful contract requires administrative, financial, and technical preparation. At Edaaat Business Development, we help companies and vendors prepare for competitions and projects by reviewing post-award requirements, organizing files and documents, preparing for contracting procedures, and supporting the preparation of technical and financial proposals within the agreed scope of services.
Contact the Edaaat team today to discuss your project needs and identify post-award requirements!