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The Saudi Electricity Company [SEC] recognizes contractors as its business partners in

providing safe and reliable electric power that is vital to the rapid and sustainable
development of the Kingdom of Saudi Arabia.
In order to enhance the contractors
business and bidding system of SEC, with the primary objective of establishing a fair and
well rounded business relationship with the contracting community, SEC is pleased to
provide its contractors this manual
procedures as well as general information that will assist and guide them not only in
seeking to do business with SEC and in preparing competitive bids but also in
implementing their contracted work or service to SEC.
SEC is constantly updating and automating its contracting procedures, which you will find
on our website. Contractors are encouraged to visit the SEC Website (Business
Contracting) in order to obtain relevant information regarding new contractual
procedures, projects, and announced contracts.
I am confident that contractors will benefit from this manual and provides answers to their
questions about the bidding and contracting system of SEC.
Contractors are encouraged to familiarize themselves with the information provided in this
This manual is published for informational
purposes only, and SEC reserves the right
to delete or change any or all parts of this
manual at any time without prior notice.

Title Section


Definitions 1

Contracting Sector Responsibilities and Organization 2

Contracting Information System & SEC Website 3

Contractors Registration 4

Forms of Contracts Used by SEC 5

Payment Methods Used by SEC 6

Methods of Procurement 7

Overview of Contract Development Process 8

Advertisement of SEC Contracts 9

Bid Slates of SEC Contracts 10

SEC Bid Packages 11

Submission of Bids 12

Review and Evaluation of Bids 13

Awarding and Signing SEC Contracts 14

Bank Guarantees Requirements (Bid Bonds / Performance Bonds) 15

SEC Short Form Contracts 16

SEC Service Order Contracts 17

Change Orders for SEC Contracts 18

Amendments to SEC Contracts 19

SEC Contract Disputes and Claims 20

Subcontracting SEC Contracts 21

Performance of SEC Contractors 22

Applicable Laws, Rule of Employment of Saudi Nationals 23

Visa Requests 24

ID Request Authorization for Main and Sub Contractor Employees 25

Final Receipt and Release Agreement for SEC Contracts 26

SEC Contract Completion Certificates 27

SEC Contracting Department Reception 28

SEC Contract Representatives 29

SEC Contracting Department's Offices 30

Contracting Sector Organization 31

Forms of Interest to Contractors 32


The Saudi Electricity Company [SEC] was incorporated on April 5, 2000. The constituent companies of SEC include the following
four [4] major electric companies and six [6] independent power-producing companies in the Northern Region plus the eleven [11]
operating projects managed by the General Electricity Corporation that merged with SEC:
1. Saudi Electric Company in the Eastern Region
2. Saudi Electric Company in the Central Region
3. Saudi Electric Company in the Southern Region
4. Saudi Electric Company in the Western Region
6. Domatil Jandal Electricity Company
7. Haqal Electricity Company
8. Rafha Electricity Company
9. Tabuk Electricity Company
10. Taima Electricity Company

y providing safe and reliable electric Services, to meet the

s partners with clear and risk free contracts

SEC Operating Areas. SEC Headquarters is located in Riyadh with the four [4] operating areas namely: Eastern Operating Area
(Dammam); Central Operating Area (Riyadh); Southern Operating Area (Abha); and the Western Operating Area (Jeddah).
SEC Contracting Manual. The SEC Contracting Manual was written to
contracting activities, and strictly governs the development and procurements of SEC contracts. The SEC Contracting Manual
contains policies that guide SEC contracting efforts and detailed procedures and controls for the various contracting processes.

Section 1

The words listed below are used in SEC bid packages, contract documents and in this Manual as defined:

1. Contract Procurement: means the process of developing a contract, and normally starts from the approval of a Contract/
Amendment Request stage until signature of the contract by SEC and the successful bidder.
2. Short Form Contract ("SFC"): means the standard abbreviated SEC contract developed by the Proponent Department,
and used for projects that are not considered as long form contracts, with value up to SR 1,000,000 and a duration of up
to six [6] months, and is non-recurring.
3. Long Form Contract: means an SEC contract that does not conform to the SFC requirements, and is prepared by the
Contracting Departments upon receipt of a request from the requesting department.
4. Contract Proponent: means the SEC Department requesting the development and procurement of a contract and which
is responsible for administration and implementation of the contract.
5. Pro-forma Contract: means the complete contract proposed to be entered into between SEC and the successful bidder
consisting of the signature pages, General Terms and Conditions including Special Terms and Condition -if
any-, Scope of Work and Technical Provisions [S ,] and the Contract Price and Payment Provisions [Schedule

6. Competitive Bidding: means bids are requested from several bidders. Bidders are placed in the same plane of equality
and all bid on the same terms and conditions.
7. Job Explanation Meeting [JOBEX]: means the meeting conducted by SEC for all contracts wherein the bidding and
contract requirements are explained and allow bidders to ask questions to be answered by the SEC Bid Review Team in
the presence of all the bidders.
8. Service Order Contract: means a contract used by SEC for recurring services or work and implemented through the
issuance of Service Orders at any time during the term of the contract, whenever a service or work is required by SEC.

Issue Date: April 2015 Replaces : June 2010
9. Unified Contracts: means two [2] or more concurrent SEC Service Order contracts with the same scope of work and
uniform unit prices.
10. Multiple Contracts: means two [2] or more concurrent SEC Service Order contracts with the same scope of work but
different unit prices.
11. Letter of Intent into a formal
contract with the contractor at a later date and also authorizing commencement of the work.
12. Bid: means the offer to perform a certain contract at a specified price. It may include both Commercial Proposal and a
Technical Proposal or Commercial Proposal only.
13. Best Bid: means one that is not necessarily the lowest, but rather serves the best interest of SEC.
14. Sealed Bid: means one submitted under seal and is not to be opened until a specified time at which all bids are to be
opened and read.

Section 2
and Organization

1. Responsibilities: Generally, SEC Contracting Sector [CS] is fully responsible for managing the development and procurement
or bidding of Long Form Contracts required by SEC, settlement of contract claims and the development of SEC contracting
policies, procedures and controls, in coordination with other SEC concerned organizations.

2. Organization: Contracting Sector includes five [5] contracting departments [one in each operating area] who are the contact
organizations concerning all contract development, procurement and bidding efforts of SEC. The fifth department is the
Contracting Policies, Claims, and Systems Department.

Section 3
Contracting Information System & SEC Website

1. Contracting Information System (CIS). SEC maintains a Contracting Information System that contains on-line up to date
information regarding all contractors registered with SEC and all contracts and the performance of contractors on SEC
contracts. In order for SEC to have up-to-date information about each contractor registered in the CIS, it is important that
contractors update additional information or changes in their organizations such as changes in contract signatories name and
address, telephone or fax numbers and other changes permitted by the system. Information
resources that are available from the CIS are treated as confidential and could be accessed only by persons duly authorized by
SEC for specific purposes.

2. SEC Website. SEC maintains a Website ( that contains SEC profile, contact addresses and information
about SEC services including but not limited to information about contracts or projects for bidding and signed contracts.
Contractors are encouraged to visit the SEC Website (Business Contracting) from time to time in order to obtain relevant on-
line information particularly for projects or contracts for bidding.

Section 4
Contractors Registration
1. Objective: of doing business with SEC since the CIS is the source
of information on contractor capabilities and resources that may be required by the different SEC organizations or branches.
SEC uses the CIS for searching for contractors who are able to perform specialized jobs and to develop Bid Slates in cases
where projects are bid based on selective bidding method of procurement [Refer to Paragraph 1.2, Section 7] or when SEC
decides to increase the number of bidders for a particular project, giving that registration does not make a contractor eligible
to enter into a contract with SEC unless it submits the required qualification documents for each individual contract or the
prequalification process.
2. Registration: The Contractor Registration is available online from the SEC Website (Business Contracting).

Issue Date: April 2015 Replaces : June 2010
3. Contractor Authorized Signatories: As part of SEC registration requirements, contractors are required to register their duly
authorized contract signatories and to submit their specimen signatures by filling the Signature Authorization Card. This Card
is to be signed by the owner of the company or his duly designated officer.

Section 5
Forms of Contracts Used by SEC

The standard Forms of Contracts used by SEC as described below vary in format from the single page Short Form Contract [refer to
Section 16] to the turnkey contracts for major projects. SEC also uses non-standard contracts, which are developed on an individual
basis to satisfy the requirements of a particular situation when none of the standard forms is suitable for the work to be contracted.
1. Turnkey Contracts. Used for major construction projects or facilities such as buildings, power plants, transmission lines and
substations. Under these forms of contracts, contractors are required to design, construct, procure materials, test and
commission the work or project.
2. Construction/Repair Contracts. Used for new construction works or projects and for the upgrading or major repairing of
existing facilities. Under this form of contract, SEC or others have done the design work.
3. Consultant Contracts. Used when companies or firms are required to provide or perform professional services of a
specialized nature. The two (2) kinds of consultant contracts used in SEC are:
3.1 Employer of Consultant Contracts. Used to secure the services of consultants.
3.2 Consultancy Contracts. Used to secure the services of a consulting firm.
4. Equipment Repair Contracts. Used for repairing or overhauling (normally referred to as T&I {Testing and Inspection}) of
SEC equipment.
5. General Service Contracts. Used for such services as janitorial, landscaping, catering, design and engineering,
transporting, painting, testing and inspecting, repairing of office machines and other small equipment, and other types of
6. Lease Agreements. Used for leasing properties required by SEC, or properties leased out by SEC to others.
7. Medical Services Contracts. Used for medical services, both inpatient and outpatient, for SEC personnel and their eligible
dependents. It is also used for Pharmacy services.
8. Water Supply and Transportation Contracts. Used for supply and transportation of water to various sites within the
Operating Areas.
9. Recruitment Contracts. Used when SEC requires the services of recruiting agencies to hire from out-of-kingdom certain
category of personnel to work for SEC.
10. Work Order (Distribution) Contracts. Used for the operation, maintenance and construction of distribution systems
handled by the various SEC Operating Areas.

Section 6
Payment Methods Used by SEC

SEC uses only two [2] basic payment methods as described hereunder, although there are other types falling under each basic
type. It is important that contractors understand them in order to be able to prepare a more competitive bid.
1. Fixed Price Contracts. Under this type of contract, a specific contract price is fixed for the work to be contracted. SEC does
not entertain price increases due to inflation or other causes that may arise during the implementation of the contract. SEC
uses the following two [2] types of Fixed Price Contracts.
.1 Lump Sum Contracts. Used whenever the work can be well defined; the quantity of work can be accurately
determined; the specifications and kind of materials and equipment as well as the category of labor to be used or to be
incorporated into the work can be clearly described; the duration of work can be fairly determined; and the risks are
nominal (or at least predictable) so the bidders will feel confident that they can accurately estimate the cost of the work
without encountering excessive contingencies or assuming inordinate risks when making their bids.
.2 Unit Rate Contracts Used only in cases where the quantity of work as well as the duration of work cannot be
ascertained or guaranteed, even if the scope of work can be accurately defined. In all such cases, SEC uses Service
orders or Work orders to require the contractor to perform a particular item of work as described in Section 17.
Basically, SEC uses the following two (2) types of Unit Rate Contracts:
Issue Date: April 2015 Replaces : June 2010
.2.1 Work Quantity Unit Rate Contracts. Payments are based on unit price for each measurable item or unit of
work (e.g. per linear, cubic meter, square meter, per piece or unit, etc.). SEC uses these types of contracts
when specific items of work can be clearly defined but the quantity for each item of work cannot be
ascertained or guaranteed. Bidders will be supplied with estimated quantities for the required work items in
order for them to submit competitive prices, and to enable SEC to determine the rankings.

.2.2 Time Unit Rate Contracts. Payments are based on labor and equipment rates (e.g. hourly, daily, weekly or
monthly rate per category of labor or type of equipment). SEC uses these types of contracts when specific
items of work cannot be defined (except in general terms) and both the quantity and duration of work cannot
be ascertained.
2. Cost Reimbursable Contracts. Under this type of contract, the cost of the work is not fixed. SEC reimburses contractor for
the actual cost incurred plus the agreed fee or compensation. SEC does not normally prefer this type of contract. SEC uses
these types of contracts only when the scope of work cannot be clearly defined; and early completion of certain portions of the
work is especially important, e.g. to meet commitments or because of a high rate of return from use of a facility or obtaining a
2.1 Reimbursable and Non-reimbursable Costs. When SEC uses this type of contract, SEC identifies the reimbursable
and non-reimbursable costs, which normally include the following:
2.1.1 Reimbursable Costs such as salaries and wages of contractor personnel; payroll taxes and fringe benefits;
cost of materials, supplies and equipment incorporated into the work; premiums for all bonds and insurance;
transportation charges; rental charges and maintenance charges for equipment to be used in performing the
work; permit fees; temporary facilities; and losses and expenses not compensated by insurance, which result
from causes other than the fault of the contractor.
2.1.2 Non-reimbursable Costs
capital and costs due to negligence of contractor or subcontractor or anyone directly employed by the
2.2 Types of Cost Reimbursable Contracts. SEC uses the following two (2) types of Cost Reimbursable Contracts:
2.2.1 Cost Plus Fixed Fee. Under this type, SEC reimburses the contractor the actual and necessary cost of the
work plus a fixed amount of fee that normally represents the profit of the contractor.
2.2.2 Cost Plus Percentage Fee. Under this type, SEC reimburses the contractor the actual and necessary cost
of the work plus a certain fee that is based on a fixed percentage of total actual cost of the work.

Section 7
Methods of Procurement Used by SEC

SEC uses mainly two (2) methods to procure its contracts; one is Competitive Bidding among qualified bidders and the other is
Negotiation (bidding without competition) with a single qualified contractor.
1. Competitive Bidding Method. SEC uses the following two (2) methods in obtaining bids through competition.
1.1 Open Bidding. Under this method, any interested contractor undergoes the prequalification process described in
Section 10. Only those contractors who meet both the commercial and technical requirements of a contract or project
are invited to submit bids.
1.2 Selective Bidding. Under this method a List of Pre-qualified Contractors is prepared in advance, after which
contractors in the list are invited to bid. This method is used in cases of rush or emergency jobs and for customer
funded projects where there is not sufficient lead time to procure and complete the project within the customer's
schedule requirement, and for other special reasons and considerations.
1.2.1 Selection of Contractors. Selective bidding does not require the advertisement described in Section 9. SEC
selects and invites those contractors it determines to be both commercially and technically qualified to perform
the work to be contracted. Normally, SEC prefers those who have experiences on similar jobs with SEC and
who have no recent record of unsatisfactory performance ratings.
1.2.2 Selection or Screening Criteria. When SEC decides to short-list the selected bidders to include only those
contractors who are best qualified to perform the work and ensure that those selected will actually submit a bid,
SEC conducts a screening process wherein a certain screening criteria is established and sends to all selected
contractors a screening inquiry where the contractor are informed about the project and their intentions to bid,
preliminary plans, current workloads and other relevant information are solicited.
Issue Date: April 2015 Replaces : June 2010
2. Negotiated Method (Single Source). It is SEC policy not to negotiate contracts with any one contractor except in situations
where consideration of all relevant factors makes negotiation as the only logical method to procure the contract and therefore
SEC uses this method of procurement only in exceptional circumstances and when adequately justified by the absence of
current market forces and shall be approved by the authorized Contract Signatory.

Section 8
Overview of SEC Contract Development and Procurement Process

SEC develops and procures its contracts in seven [7] stages as listed below:
1st Stage-Contract/Amendment Request Approval. To initiate the development and procurement of any contract, a Contract
Request (or Contract Action Plan, if applicable), is prepared and approved by the SEC authorized Contract Signatory.
2nd Stage - Bid Slate Development. The project is advertised in the SEC Website (Business Contracting) and local and
international publications as required, and then Prequalification Forms are issued to interested contractors.
3rd Stage - Bid Package Development. For every contract, SEC develops a Bid Package [refer to Section 11] including the Pro-
forma Contract, [see Section 1 for definition] for issuance to all bidders. SEC will charge bidders a certain non-refundable fee for
each bid package. The amount depends on the magnitude of the project.
4th Stage Bidding. During this stage SEC conducts the Job Explanation Meeting [Site Visit is also conducted when deemed
necessary or requested by bidders]. Bidders are invited to attend these meetings; failure to do so may cause SEC to reject the bid.

questions and provides the same answers to all the bidders. All bids are required to be prepared and submitted in accordance with
the Invitation for Bids and the Instructions to Bidders.
5th Stage - Bid Evaluation. Promptly after the opening of bids SEC evaluates the bids as shown in paragraph 1-1 of section 13,
regardless of the bid opening method used (Single or Multi-stage). During the evaluation of bids, SEC conducts bid clarification
meetings to obtain clear understanding of the bids,.
6th Stage - Award Recommendation Development & Approval. After evaluating the bids, SEC prepares the Award
Recommendation for approval of the Contract Signatory. After approval of the Award Recommendation, SEC prepares the Notice of
Award and issues it to the successful bidder.
7th Stage - Finalizing and Signing the Contract. Promptly after approval of the Award Recommendation, SEC finalizes the
contract in two [2] duplicate originals. CD endorses the final contract for signature of the duly authorized Contract Signatory and
then obtains the successful bidders signature. SEC issues one [1] duplicate original to the successful bidder.

Section 9
Advertisements of SEC Contracts

It is the policy of SEC to publicly advertise its contracts procured through open bidding. The advertisements are made as described
1. Long Form Contracts. SEC advertises its long form contracts at the SEC Website (Business Contracting), local newspapers
and at selected International Magazines [for major projects only].
2. Short Form Contracts. SEC advertises its Short Form Contracts at the SEC Website (Business Contracting) .
3. Issuance of Prequalification [PQ] Forms. SEC issues Prequalification [PQ] forms only to contractors whose Commercial
Registrations includes the work to be contracted.

Section 10
Bid Slates for SEC Contracts
The purpose of prequalification is to identity contractors who have the technical and financial resources to satisfactorily perform a
particular project or contract within the prescribed period. SEC normally develops the Bid Slates for its contracts/projects one [1]
year in advance of the start of work. In order for any contractor to be able to participate in bidding SEC projects procured through
competitive bidding, it must pass a certain criteria on both technical, financial, and commercial considerations, however, SEC may,
at its discretion, include in the Bid Slate those existing contractors for the same types of work without undergoing the prequalification
process, provided that they have no record of unsatisfactory performance.
Issue Date: April 2015 Replaces : June 2010
1. Prequalification Criteria. SEC uses the following general criteria in developing bids slates:
1.1 Technical Considerations
1.1.1 Experience on Similar Works. A bidder must have sufficient experience in the work to be contracted.
1.1.2 Present Organization. A bidder must have a clear and functional organization.
1.1.3 Manpower Resources. A bidder must have adequate and qualified manpower that is ready to be mobilized
within the required period.
1.1.4 Proposed Equipment. A bidder must have adequate equipment that is ready to be mobilized within the
required period.
1.1.5 Performance on SEC Contracts. A bidder must not have any "Unsatisfactory" Performance Rating on any
of its recent contracts (not to exceed one year) with SEC.
1.2 Commercial and Financial Considerations
1.2.1 . A bidder must possess a valid Commercial
Registration that covers the work to be contracted.
1.2.2 Contractor Classification Certificate (CCC). A bidder's CCC, if required, must be valid, covering the work

1.2.3 Zakah and GOSI Certificates. A bidder must possess valid Zakah and GOSI Certificates (if applicable).
1.2.4 Certificate of Saudization: A certificate issued by the Labor Office attesting to adherence of Contractor to
the official Saudization percentage.
1.2.5 Financial Resources. A bidder must have adequate financial resources that meet the annual requirements
1.2.6 A contractor may not submit more than one bid to perform similar work within a bid, either as a partner or
the owner of separate qualified bidders (please refer to section 11- paragraph 3 "Conflict of Interest").
2. Debriefing Contractors
SEC clarifies the basis for their disqualifications. Contractors are encouraged to request
for Debriefings in order to know their deficiencies and be able to correct them in similar future projects. SEC provides
such clarifications in a meeting referred to as "Debriefing".
2.2 SEC conducts Debriefings before the job explanation for the particular contract/project has been done. During
Debriefings with any contractor, it is the policy of SEC not to discuss or disclose to the contractor the submittals of
other contractors.
3. Tips for Preparing Good PQ Documents
In order to allow SEC
are encouraged to fill out the PQ forms completely; comply with all written instructions; submit all documents required; provide
complete and accurate information; describe in detail their plans to perform the work and means of providing the required
resources; and provide any necessary additional information that will help assess their capabilities; and to submit a well
organized package. It is of utmost importance for contractors to be able to show their experiences on similar jobs. [When in
doubt, always ask for clarifications; do not assume].

Section 11
SEC Bid Packages
It is the policy of SEC to put all its bidders for a specific contract on the same plane of equality; therefore, SEC issues each bidder
the same and complete Bid Package on which they prepare their bids.
1. Contents. Generally, while the complexity and details of a bid package vary with the size and nature of the work, SEC bid
packages normally include Invitation for Contract Proposal; Instructions to Bidders for Commercial Proposal (and Technical
Proposal if applicable); Bid Forms for Commercial Proposal and Technical Proposal, if applicable; and the Proforma Contract,
consisting the Contract Signature Document and the standard documents listed below.
Issue Date: April 2015 Replaces : June 2010
1.1 Schedule "A" - General Terms and Conditions, and, if any, special terms and conditions to suit a particular contract.
1.2 Schedule "B" - Scope of Work and Technical Provisions, including Technical Specifications and drawings.
1.3 Schedule "C" - Payment provisions including special terms and conditions (for compensation, if any), and pricing
1.4 Ancillary documents like Performance Guarantee and Warranty Certificates format.
2. Confidentiality
2.1 SEC Proprietary Information. SEC Bid packages and contracting standard forms contain provisions for ensuring the
confidentiality of proprietary information or technology provided by or developed by SEC. Bidders are requested not to
disclose any prop
Confidentiality Agreement because the Bid Package discloses or reveals SEC's proprietary information or technology,
it is to be executed by the bidder before it is issued the Bid Package. For Cost Reimbursable Contracts, Confidentiality
Agreements are not executed until the contracts are awarded. In this case SEC informs the bidders during the bidding
stage that the successful bidder shall be required to sign a Confidentiality Agreement.
2.2 Bidders/Contractor Submittals. Other than the total bid prices that are announced during the opening of bids, SEC
keeps all contractor submittals confidential, including those documents that are submitted during the prequalification
process or screening inquiry described in Sections 10.
3. Conflict of Interest
A Contractor may not have a conflict of interest in competing for the contract as provided for in the Instructions to Bidders for
Commercial Proposal and shall not have a conflict of interest in executing the contract. A contractor may be considered to
have a conflict of interest in the execution of the contract with one or more parties, if:
3.1 Bidder has an interest in another bidder in the same bid. If during the submission and opening of bids it appears that
the Bidder own or is an owner of another bidder in this bid, SEC shall have the right to reject such bids (totally or
3.2 Bidder has received any information that directly or indirectly affects bids from any bidders in this bid.

3.3 Bidder is represented by the same legal representative as other bidders for purposes of this bid.
3.4 Bidder has a direct relationship with other bidders, directly or through common third parties, that puts them in a
position to have access to information about or influence on the bid of another Bidder, or influence the decisions of
COMPANY regarding this bidding process.
3.5 Bidder participates in more than one bid as a principal bidder in this bidding process. SEC shall have the right to
totally or partially reject all Bids in which such Bidder is involved. Exception shall be the inclusion of the same
subcontractor in more than one bid, and a Bidder may submit a subcontract bid or quote prices on materials or
equipment to other Bidders and also submit a bid as principal bidder for the contract either by itself, or as a partner in a
joint venture or consortium.
3.6 Bidder participated as a consultant in the preparation of the design or technical specifications of this bid, or the Bidder
is associated or affiliated with the firm or organization that participated in the preparation of the design or technical
specifications of this bid.
3.7 Any Contractor's director, officer, agent, employee, appointed representative or independent consultant has a
conflict of interest in the bidding and award of a subcontract for a portion of the work, or a purchase order for supply of
material or equipment for the contract.
3.8 Where any Contractor's director, officer, agent, employee, appointed representative or independent consultant has
interest (personal, professional, financial or otherwise), directly or indirectly, in a subcontractor being considered for a
subcontract or purchase order for a portion of the work under the contract. In such a case, the Contractor shall present
relevant evidence to SEC demonstrating that no conflict of interest has occurred in bid solicitation and award of the
subcontract or purchase order, and that competition was fair and transparent.
4. Bid Package Fee
4.1 Amount of Bid Package Fee. The fee charged for a Bid Package is determined in accordance with SEC established
guide-lines. Only the Contracting Department is authorized to collect bid package fees.
4.2 Refund of Bid Package Fee. SEC does not refund bid package fees charged to bidders. However, under special
circumstances, the Manager of Contracting Department can authorize a refund as follows:

Issue Date: April 2015 Replaces : June 2010
4.2.1 The full amount of the fee is to be refunded to all the bidders when the project is cancelled. In this case, the
bidders are required to return the Bid Package, if possible, as a condition of refund.
4.2.2 A proportionate amount may be refunded to all the bidders when the scope of work awarded was
substantially reduced from the scope of work included in the Proforma Contract. The Manager of Contracting
Department determines the amount of such refund.
5. Modifications to Bid Packages [Addenda]. If, during the bidding stage, additional information or changes to the Bid Package
are necessary due to changes in SEC requirements, such additional information or changes are issued to all the bidders in the
form of an Addendum to the Bid Package.

Section 12
Submission of Bids

SEC conducts its biddings in accordance with SEC established guidelines and with generally accepted international bidding
procedures. Due to the sensitive nature of bids, it is SEC policy to maximize security in the handling of bids, and as a deterrent to
irregularities, to make such security measures visual. SEC gives sufficient time for bidders to review bid packages and to prepare
their bids. Described below are some SEC bidding procedures and guidelines.
1. Job Explanation Meetings. In all cases SEC conducts a Job Explanation Meeting (JOBEX), except for contracts for which the
Manager of Contracting Department has waived such meetings because the bidding requirements are so clear that no benefit
would be obtained by holding such meeting. The purpose of JOBEXs is to explain in detail SEC bidding and contract
requirements and to answer or clarify any questions the bidders may have. All contractors are required to attend the JOBEXs.
Where a contractor cannot attend, it is required to submit a written explanation to SEC. Failure by any contractor to attend a
JOBEX may cause SEC . SEC, for its own purposes, records JOBEXs for the record
and to refer to it when necessary.
2. Answers to Bidders Questions. Except questions raised during the JOBEX, SEC requires that any question about the
project be made in writing. SEC answers each question and provides the same replies to all the bidders.
3. Receipt of Bids. SEC requires that bids be delivered to the Bid Opening Committee [BOC] at the time and place specified in
the Invitation for Contract Proposal. The BOC first receives all the bids before starting the bid opening. SEC does not allow any
bidder who does not submit a bid to witness the opening of bids. The BOC opens and reads the bids in accordance with SEC
established guidelines.
4. Bids to be Opened. In competitive bidding, the only bids that are to be opened and read are those that are delivered to the
BOC on or before the Bid Closing Date and time. SEC does not accept any bid sent to Contracting Department through mail
and not received on or before the Bid Opening Date/Time. Such bid is to be returned promptly to the bidder unopened. SEC
rejects outright and returns to the bidder any bid that is not accompanied with a Bid Bond, if required.
5. Handling Late Bids. Late Bid BOC on or before
the Bid Opening Time. It is a policy of SEC not to accept Late Bids. Therefore, it is important that contractor submit their
bids on time.

Section 13
Review and Evaluation of Bids

1. The nature and emphasis of the bid review and evaluation by SEC depend on the nature of the work to be contracted and the
type of the contract. SEC takes into consideration several factors and rules in determining the contractor that meets SEC
requirements and could serve the best interest of SEC. SEC emphasizes the use of high standard of ethics and fairness at all
times during the review and evaluation of bids.
1.1 Technical Proposal of the Lowest Bidder is the First to be evaluated. When bids are required to include both
Commercial Proposals [CP] and Technical Proposals [TP] and to be opened simultaneously, SEC first reviews the bid
of the lowest bidder. If the bid of the lowest bidder is determined to be non-complying and/or is not acceptable, then the
bid of the second low bidder shall be considered. This procedure is followed until an acceptable bid is determined.
However, there are cases where the CPs and TPs are not to be opened simultaneously, wherein the TPs are to be
opened and evaluated first; and all the CPs are kept with the bidders until the evaluation of all the TPs is completed.
Only the CPs of bidders whose TPs are determined to be acceptable are to be opened.
1.2 Bid with Exception or Deviation may be Disqualified. SEC disqualifies bids that include exceptions or deviations
from the contract or work requirements.
Issue Date: April 2015 Replaces : June 2010
1.3 Alternative Bids that are not called are rejected. SEC rejects any "Alternative Bid" that is not called for in the Bid
Form or Instructions to Bidders.
1.4 Lowest Price shall prevail. It is the policy of SEC to have the lowest price prevail whenever there are discrepancies in
the bid prices of any bidder.
1.5 Bid Prices shall not be changed after Bid Opening. SEC does not allow, under any circumstance, a bidder to
change its bid price after the opening of bids.
2. Debriefing Contractors. SEC recognizes the fact that bidders incur expenses in preparing their bids and normally, the greater
the magnitude of
SEC procedures for debriefing unsuccessful bidders are the same as described in Paragraph 2 of Section 10.
3. Tips for Preparing Responsive Bids. In order to be able to submit a responsive bid, contractors are encouraged to: strictly
comply with the Instructions to Bidders; bid only for what is required; submit all documents required together with bids; fill out
the bid forms
submit alternate bids when it is not solicited; not submit unnecessary and unsolicited documents; and to not revise the forms
received from SEC. When in doubt, contractors are advised to always seek clarifications and not make assumptions. Also in
order that they may be able to prepare competitive bids, it is always helpful for contractors to know their competitors and not to
underestimating them.

Section 14
Awarding and Signing SEC Contracts

SEC applies the procedures described below in awarding and signing contracts.
1. Notice of Award. SE ".
2. Letter of intent. Letter of Intent Notice of Award. Refer to
Section 1 for definition.
3. Awarding Unified Service/Work (Unified Rated) Contracts. SEC normally awards two [2] or more Unified contacts for
operation and maintenance services such as Construction and Maintenance of Overhead and Underground Distribution
Systems for the various SEC Operating Areas. Refer to Section 1 for definitions and also to Section 17.
4. Awarding Multiple Service Order Contracts. Similar to Unified Contracts, SEC also normally awards two [2] or more
Multiple Service Order contracts for general services. Refer to Section 1 for definitions and also to Section 17.
5. Contract Signing. After SEC has signed the contract, two [2] duplicate originals of the contract are presented to the
successful bidder for signature by duly authorized signatory. Contractors are encouraged to ensure that their duly authorized
signatories are recorded with the SEC CIS. Contractor signatories that are not listed in the CIS are required to submit their
authorizations during contract signing.
6. Notification to Unsuccessful Bidders. After both parties have signed the contract, a general announcement to all
unsuccessful bidders is posted in the SEC Website (Business Contracting) , that the contract has been awarded indicating
the name of the successful bidder.

Section 15
Bank Guarantees Requirements ( Bid Bonds / Performance Bonds )

SEC requires assurances from third parties on behalf of the contractors, in order to reasonably protect SEC from the risk of various
types of losses, which could occur while dealing with contractors.
1. Bid Bonds (BB). For those contracts requiring bid bonds, SEC indicates the following Bid Bond :
1.1 Amount - not less than two percent (2%) of the bidder's total bid price.
1.2 Validity - throughout the validity period of the bids as indicated in the Bid Forms. In cases where the evaluation of bids
is prolonged, SEC requires bidders to extend the validity of their bids and corresponding BBs.
1.3 Forms - unconditional and irrevocable Bank Guarantee that conforms to the format prescribed by the Saudi Arabian
Monetary Agency (SAMA). SEC will not, under any circumstance, accept BBs in the form of Cash or Checks.
Issue Date: April 2015 Replaces : June 2010
1.4 Release - after the successful bidder has posted its Performance Bond (see paragraph 2 of this section). Only
Contracting Department is authorized to release Bid Bonds. Please note that as per directive of the Ministry of Finance,
The BB may be extended after issuance of the Notice of Award and without the Bidder's approval, if the contract is
awarded and the successful Contractor delays or fails to submit the requisite Performance Bond mentioned in
paragraph 2 of this section.
1.5 Forfeiture - SEC forfeits BBs in the following cases:
1.5.1 a bidder declines to accept the contract award or sign the contract, or
1.5.2 a bidder withdraws its bid prior to contract award, even if that bidder is not among the three (3) lowest
bidders, or
1.5.3 a bidder withdraws its bid
1.5.4 prior to offering the SEC's Working Unit Rates in Unified Contracts, even if the bidder is not among the initial
prospective awardees of one of the Unified Contracts.
2. Performance Bonds (PB). SEC normally indicates the following Performance Bond requirements in its applicable contracts:
2.1 Amount - not be less than five percent (5%) of the total estimated contract value.
2.2 Validity - throughout the duration of the contract and until all the contractor's obligations are met, including its contract
warranty obligations, if applicable.
2.3 Form - unconditional and irrevocable Bank Guarantee that conforms to the format prescribed by SAMA. PBs in the
form of Cash or checks are not acceptable.
2.4 Release after the contractor has fully fulfilled its obligations under the contract. Only Contracting Department is
authorized to release PBs.
2.5 Forfeiture
event that the contractor fails to perform or complete any corrective work or any of its contract warranty obligations, as
defined in the contract.
3. Performance Guarantees (From Manufacturers). When applicable, SEC stipulates in the Bid Package, that if the successful
bidder is a Joint Venture company between a Saudi contractor and a foreign manufacturer, it is required to submit a
Performance Guarantee (PG) signed by the manufacturer (or parent company) before such bidder may sign the contract
4. Bank Guarantee for Advance Payments. In cases where SEC provides the contractor with an advance payment under a
particular contract, SEC requires the contractor to provide an unconditional Bank Guarantee to cover the entire amount of the
advance payment. SEC releases Bank Guarantees for advance payments only after it has recovered the full amount of the

Section 16
SEC Short Form Contracts

SEC uses Short Form Contracts ("SFC") as defined in Section 1 of this Manual. Some of the procedures and guidelines applied by
SEC are described below.
1. SFC Payments
1.1 One Time Payment. SEC normally does not allow progress payments in SFCs except as described Paragraph 1.2 of
this Section. SEC makes full financial settlement of the SFC after completion of the work by the contractor and
acceptance by SEC.
1.2 Partial Payments. If the work is not completed within six (6) months due to delays attributable to SEC, then SEC and
the contractor agree on the amount of work completed up to the 6 months period, so that payment could be made. In
this case, SEC terminates the existing SFC and executes a new SFC, with a new SFC number, to cover the
uncompleted work at the previously agreed price.
1.3 Payment for Unit Rate SFCs. Since the exact amount of Unit Rate SFCs cannot be determined until after the
completion of the work, SEC clearly indicates in the pricing Section of the SFC, that the total value is "approximate

1.4 Scope of Work Changes (SFC Revisions). SFCs do not include a change order provision; therefore the scope of
work cannot be changed through the use of change orders. Should changes in value occur due, for example, to an
unanticipated change in the scope of work, whether for a less or greater amount, SEC cancels the existing SFC and
then issues a new one, bearing the same SFC number and incorporating the necessary changes.

Issue Date: April 2015 Replaces : June 2010
Section 17
SEC Service Order Contracts

SEC may from time to time need certain recurring services from contractors. To be able to quickly acquire such services as and
when required, SEC may enter into contracts ahead of time, which define the agreed rate of compensation and other matters, and
then issue "Service Orders" when a specific item of work is needed as per the basic contract.
1. Service Order Forms. SEC uses several work authorization forms of Service Orders (SOs)" including forms #s SEC 15052
[Service Order]; SEC 16295, 16298, 16299 & 16300 [Work Orders]; SEC 15371 [Service Work Order] or SEC 15295 [On/Off
Hire Form].
2. Forms of Service Order Contracts. When SEC requires more than one (1) SO contract for the same type of services to be
rendered concurrently by more than one (1) contractor, SEC uses any one of the following forms of SO contracts:
2.1 Unified Contracts. Used when the scope of work, the terms and conditions and unit prices are the same for all the
individual contracts.
2.2 Multiple Contracts. Used when the scope of work and the terms and conditions are the same for all the contracts but the
unit prices (and in some cases the work locations) are different for each of the individual contracts.
3. Bidding for Multiple Contracts. All SEC Multiple Contracts wherein the basis of payments include Labor Rates and/or
Equipment Rates, include a provision that the SOs may be competitively bid upon by the contractors. The bidding establishes
the total number of man-hours and/or equipment utilization period by category that each contractor anticipates will be utilized
for the particular SO. SEC may then issue the SO to the contractor who offered the lowest total estimated value based on the
contract unit rates and estimated man-hours or equipment utilization period, which is to be set as the maximum SO price.
4. General Guidelines on the Issuance of Service Orders. SEC SOs are indicated in each
applicable SO contract. An example of these guidelines is that SEC issues SOs before commencement of the work, except in
emergency situations, wherein SEC issues after-the-fact SOs during or after completion of the work. It is important that
contractors complete the work covered in each SO to avoid penalty assessments.
5. Changes to Service Orders. SEC SO are clearly indicated in each applicable SEC SO
contract. An example of these guidelines is that SEC may revise a SO when the scope of work needs to be changed in order to
reflect the work that will be actually performed by the contractor. For example: for the repair of equipment, SEC may initially
issue a SO to cover only the inspection portion, and then after inspection, SEC revises the SO to include the repair work
required and identified during inspection.

Section 18
Change Orders for SEC Contracts
unforeseen field conditions by using the standard form (SEC 15036A). These changes are normally within the general scope of
the contracts. By SEC
SEC applicable contracts stipulate the Change Order Request (COR) requirements. e
(COA) shall be duly filled and signed.
1. Application of Change Orders. Normally, SEC may issue CORs to accomplish certain objectives including, but not limited to,
any one or more of the following:
1.1 To add, modify or delete work or services to be accomplished under the contract.
1.2 To add, modify or delete standards, drawings or technical specifications.
1.3 To change the Project Execution Requirements, if any, contained in the contract.
1.4 To modify a portion of the work already completed while the work is in progress.
1.5 To perform repairs, or to correct deficient work required by SEC for which the contractor is not responsible by warranty or
otherwise under the contract.
1.6 To modify the sequence of work performance, as a result of alteration of work or change in the scope of work.
1.7 To authorize other types of contractual modifications that SEC determines are to be accomplished by a COR.
1.8 To implement changes requested by the contractor and agreed by SEC to be treated as changes.
Issue Date: April 2015 Replaces : June 2010
2. General Guidelines on Use of Change Order Requests. In general, SEC applies the following guidelines on the use of
Change Order Requests:
2.1 SEC uses COAs only in accordance with the terms of the contract. If the contract does not have a CO provision, SEC
does not use COAs.
2.2 SEC does not use COAs for changes to the Final Acceptance Date or Critical Milestone Dates of a contract due to Force
Majeure events or delays caused by SEC. SEC normally makes such changes through an Amendment to the contract as
described in Section 19.
2.3 SEC may issue a single COA to cover multiple changes.
2.4 SEC issues COAs before the contractor is allowed to perform the changed work,
3. Modification or Cancellation of Change Order Agreements. Normally, SEC contracts specifies that when circumstances
require that a COR be changed or modified, SEC cancels the COA and issues a new one bearing the same number of the
canceled COA.
4. Payment for Change Order Request. COA.
4.1 SEC pays contractors only after completion of the COA work. However, for COA work that continues over a long period,
SEC may allow progress payments if the corresponding contract provides for such progress payments.
4.2 SEC uses the Settlement for Contract Change Order (SCCO), Form No. SEC 15037, that serves as the authorization to
pay the contractor for the completed COA work, except Cost Reimbursable Contracts where SCCO is not required.
4.3 SEC may settle more than one COA under a single SCCO form. However, the value of each COA is to be clearly
4.4 For COAs that allow progress payments, a separate SCCO form for each progress payment is not required. The
certification of each invoice is sufficient to allow payment of the work completed. However, SEC uses the SCCO form in
making the final payment of the COA.

Section 19
Amendments to SEC Contracts

SEC contracts normally stipulates that SEC and its contractors may, at any time, during the contracts periods, agree to amend or
modify any of the contracts terms and conditions, provided that the modifications are made in a manner permitted by the contracts.
Unless the desired modification is one that can be accomplished by a CO as described in Section 18, the modification is made
through a formal contract amendment, signed by both parties.
Application of Contract Amendments. SEC contracts clearly specify that SEC and the contractor may agree to amend a particular
contract to accomplish certain objectives including but not limited to, any one or any combination of the following:
1. To add, change or delete any of the contract terms and conditions.
2. To extend the Final Acceptance Date or any of the Critical Milestone Dates indicated in the contract as a result of Force
Majeure events or SEC delays.
3. To assign the contract to another contractor, when requested by the original contractor.
4. To change any of the contractor's legal information, such as its name and Commercial Registration Number.
5. To settle a claim or dispute where the SEC determines that the disputed work or compensation should have been covered by a
contract amendment.

Section 20
SEC Contract Disputes and Claims

SEC normally treats a written request to obtain monetary recovery from the other party as either a dispute or a claim and both
parties have the contractual obligation to settle them amicably.
1. Filing of Claims. SEC contracts clearly stipulate the procedures and requirements for handling disputes and claims.
Contractors must file claims according to the terms and conditions of their specific contracts.
Issue Date: April 2015 Replaces : June 2010
2. Evaluation of Claims. It is the policy of SEC to provide for the fair resolution of disputes or claims that may arise between
SEC and its contractors in accordance with SEC established procedures. Resolution of claims are done through the SEC
Claims process and approved by the SEC contract signatory or the SEC Chief Executive Officer when the amount of
settlement exceeds a certain level.
3. Claims Settlement. SEC uses the following instruments to execute a claim settlement with its contractors:
3.1 Contract Claim Settlement Form [form # SEC 15035].
3.2 Final Receipt and Release Agreement [form # SEC 15076].
3.3 Contract Change Order Agreement as described in Section 18
3.4 Contract Amendment as described in Section 19.
4. Claim Appeals. SEC contracts also clearly stipulate that contractors have the right to appeal the SEC decisions about their
claims. Contractors must submit their appeals according to the provisions of their specific contracts.
5. Evaluation of Appeals.
Board] who will further review an

Section 21
Subcontracting SEC Contracts
It is policy of SEC to allow its main contractors to subcontract any portion of their work contracted with SEC. SEC does not allow
equirements for subcontracting are clearly stipulated in SEC contracts. Described below
are the 6 steps in obtaining SEC approval of subcontractors.
1. or from the SEC
Website (Business Contracting) .
2. Fill out the form completely and correctly, have it signed by duly authorized signatory and stamped with
the main contractor's official seal.
3. Submit the duly filled out form to the SEC Contract Proponent Department [together with all documents required] for technical
and signature by the

4. If the qualified, submit the form duly signed by

commercial documents.
5. Collect from the CD Reception the original of
6. S No
Objection Letter

Section 22
Performance of SEC Contractors

It is the policy of SEC to monitor and evaluate the performances of its contractors in order that SEC may be able to determine the
corrective actions that are appropriate when a particular contractor is lagging on its performance. It also helps SEC to identify and
correct problems of its own that may contribute to the unsatisfactory performance of a contractor. SEC evaluates the performance of
its contractors in accordance with established procedures, using the SEC standard Contractor Performance Report [CPR] form.
1. Applicability and Frequency of CPRs. Contract Proponents accomplish a CPR for every contract every six [6] months or
one [1] year base on the contract duration with one [1] final CPR covering the entire contract duration. An exception is that if a
level, a CPR is prepared immediately, and every month
factory level or the contract is terminated or otherwise
the work is completed..
2. CPR Review Authority. CPRs are SEC proprietary information and are not shown to contractors. They are released to SEC
need to know partment keeps and controls all CPRs.
3. Contractor Performance Review Meetings. Whenever a contractor's performance falls to Unsatisfactory level, it is the
policy of SEC to determine the causes and corrective actions to be taken in order to improve the cont

corrective measures to be undertaken are agreed upon by both parties.

Issue Date: April 2015 Replaces : June 2010
4. Actions to be taken if Contractor Fails to Improve its Performance. If a particular contractor fails to improve its
performance despite the efforts taken as described in Paragraph 3 of this Section, SEC applies the following actions:
4.1 Six (6) Months Prohibition to Bid. A contractor is prohibited from bidding on all SEC contracts for a period of six (6)
months if within a given contract period, the contractor is given three (3) consecutive overall Unsatisfactory performance
ratings. However, if the reason for unsatisfactory performance is purely technical, as determined by SEC, the contractor is
only prohibited from bidding for contracts with similar scope of work. The six (6) months period commences on the date of
the third consecutive Unsatisfactory CPR. However, if within the six (6) months period, the contractor's performance
improves to at least Satisfactory level, the contractor may then be allowed to bid effective on the date of the
corresponding Satisfactory CPR.
4.2 Nine (9) Months Prohibition to Bid. A contractor is prohibited from bidding on all SEC contracts for a period of nine (9)
months if after completion of the work (or at the end of the contract duration), the contractor is given a final overall
Unsatisfactory performance rating. However, if the reason for unsatisfactory performance is purely technical, as
determined by SEC, the contractor is only prohibited from bidding for contracts with similar scope of work. The nine-month
prohibition period commences on the Final Acceptance Date or expiration date of the contract.
4.3 One (1) Year Prohibition to Bid. A contractor is prohibited from bidding for all SEC contracts for a period of one (1) year
if SEC terminates the contract for cause as a result of Unsatisfactory performance. However, if the reason for
termination is purely technical, as determined by SEC, the contractor is only prohibited to bid for contracts with similar
scope of work. The one (1) year prohibition period commences on the effective date of termination of the contract.
5. Delinquent Contractors. Contractors are encouraged to comply with Government regulations to pay their employees on time.
SEC applies the following administrative procedures [consistent with Government directives] in dealing with contractors, as
well as subcontractors, who are delinquent in paying the salaries and benefits of their employees. Upon receipt of a written
notice from the Contract Proponent or any other SEC organization
ducts a meeting with the contractor to instruct it to immediately comply
within thirty [30] days with the Government requirement to pay its employees and to advise its subcontractor to do the same,
as applicable. If, after the lapse of the thirty (30) days period, the contractor or its subcontractor failed to comply, CD notifies
the concerned authorities in the Ministry of Labor in writing.
6. Actions Normally Taken by SEC for Work Delays. Contractors are also encouraged to complete their SEC contracts on time
in order to avoid penalty. SEC normally includes in its contracts a provision that SEC assesses liquidated damages [penalties]
against contractors failing to meet their contractual obligations to complete the work within the specified completion date. The
maximum penalty that may be assessed against any contractor shall not exceed the amount equal to 10% of the estimated
total contract value plus the actual amount that may be paid by SEC to its construction-monitoring consultant who is contracted
to manage or supervise the project.

Section 23
Applicable Laws, Rules and Employment of Saudi Nationals

SEC encourages its contractors to employ Saudi nationals to perform their contracts with SEC and comply with applicable laws and
regulations. SEC contracts stipulate the following requirements concerning applicable laws and contractors are encouraged to
1. Labor Law. By signing an SEC contract, contractors acknowledge their responsibilities to their personnel pursuant to the
Labor and Workmen Law and to comply with all applicable laws and regulations of the Kingdom of Saudi Arabia.
2. SEC Work Rules. Contract
rules and instructions issued by SEC to its own employees.
3. Employment of Saudi Nationals. Contractors are required to give priority to Saudi nationals when obtaining additional
personnel to supplement their permanent staff in the performance of the work and to ensure that its subcontractors do the
4. Restriction on Employment of SEC Personnel. The Instructions to Bidders of SEC Bid Packages specifies the restrictions
for employing SEC personnel. Contractors are advised to strictly comply with the restrictions.

Issue Date: April 2015 Replaces : June 2010
Section 24
Visa Requests

SEC normally provides assistance to its prime contractors in obtaining the required working visas when SEC finds it necessary and
justifiable for contractors to employ expatriates in perform
Ministry of Labor. Described below are the steps in obtaining SEC assistance.
1. Visa Endorsement Request for Main Contractor , or CD 039G Main Contractor Additional Manpower
Endorsement Request , or CD 039H Visa Endorsement Request for Sub-Contractor as applicable - from SEC Website
(Business Contracting) .
2. Fill out the form completely and correctly and then stamp it with your compa .
3. Submit the form to the Proponent Department.
4. Upon validation of the manpower requirements in accordance with the contract requirements and approval of the form by the
Proponent Department, SEC will issue .

Section 25
ID Request Authorization for Main and Sub Contractor Employees

For Security reasons, SEC requires the personnel of its contractors and subcontractors to wear SEC Contractor Identification Cards
[IDs] when working within any SEC premises or facilities. Costs for issuing such IDs shall be borne by the Contractor. Described
below are the steps
1. ID Request Authorization for Main Contractor Employees
1.1 tion for Main Contractor Employees from SEC Website (Business
Contracting) .
1.2 Fill out the form completely and correctly, have it

1.3 Submit the duly filled out form to the SEC Contract Proponent for filling out the Contract Information block of the form and
Division Manager or higher level.
1.4 Collect from the Proponent Department.
1.5 Present the approve Security Department [ISD] and obtain schedule and instructions
for processing the SEC IDs of your personnel. Your duly authorized legal representative indicated in the approved ID
Request is the one required to deal with ISD.
2. ID Request Authorization for Sub Contractor Employees
2.1 n for Subcontractor Employees from SEC Website (Business
Contracting) .
signature and have it stamped with the prime
2.3 Submit the duly filled out form to the SEC Contract Proponent for filling out the Contract Information block of the form and
signature of the Division Manager or higher level.
2.4 Proponent Department
for processing the SEC IDs of your personnel. Your duly authorized legal representative indicated in the approved ID
Request is the one required to deal with ISD.

SEC contracts specify that Contractors and subcontractors are obliged to keep and use SEC Contractor ID Cards in accordance
Contractor ID Card.

Issue Date: April 2015 Replaces : June 2010
Section 26
Final Receipt and Release Agreement for SEC Contracts

It is a policy of SEC to record all its contracts in its Contracting Information System [CIS] after signing and then closes them out by
Inactive CIS whereupon no further transaction, whatsoever, can be made. SEC closes out majority of
its contracts by requiring contractor to sign and submit form # SEC 15076,
accordance with the terms and conditions of the contracts. However, when there is a pending claim, SEC does not process the
FRRA until both parties settle the claim. Described below are the 2 steps in signing FRRAs.
Proponent for certification of the amount and preparation of the FRRA.
2. Sign the FRRA prepared by the Contract Proponent.

Section 27
SEC Contract Completion Certificates
SEC recognizes its obligation to issue Contract Completion Certificates to any of its contractors who successfully complete their
contracted work,. To obtain one, the contractor should visit the SEC Website (Business Contracting) to request a completion

Section 28
SEC Contracting Department Reception

SEC has a central point for the issuance of, and receipt of letters, bid packages and all other documents related to bidding and
contracts, which is the Contracting Department Reception Counter located at the Contracting Department Offices. SEC applies the
following rules/procedures and encourages contractor to follow:
1. Contractors are required to deliver and collect letters, bid packages and all other documents from the CD Reception Counter.
2. Contractors are not normally allowed to deliver or collect letters and documents directly to the Contract Representatives
3. In cases where the personnel assigned to the CD Reception Counter is not available, telephone is available at the counter and
the number to be called.

Section 29
SEC Contract Representatives

SEC assigns Contract Representatives to handle the development and procurement of SEC contracts. These professionals are the
official SEC contact individuals for specific contracts. Their names and contact telephone numbers are normally indicated in each
and every Invitation for Bids or Proposals for contracts, Contractors are encouraged to directly contact the Contract Representative
when inquiring about a specific contract assigned to them. However, other inquiries that are not related to specific contracts may be
referred to the CD Division Managers or to the Contracting Department Manager.

Issue Date: April 2015 Replaces : June 2010
Section 30
SEC Contracting Department's Offices

Contracting Department Offices of the four SEC Operating Areas are located at any of the following addresses:

Eastern Operating Area Southern Operating Area

Room 3-106W, Phase III, EOA - HQ Bldg. 2nd Floor, SOA - HQ Bldg.
Dammam Abha
Telephone No. +966(13)858-6788 Telephone No. +966(17)231-9880
Fax No. +966(13)858-6246 Fax No. +966(17)227-0273

Central Operating Area Western Operating Area

Bldg. 6 ; COA - HQ Building Complex 1st floor, WOA - HQ Bldg.
Riyadh Jeddah
Telephone No. +966(11)408-6170 Telephone No. +966(12)653-8300
Fax No. +966(11)408-6171 Fax No. +966(12)651-8325

Section 31
SEC Contracting Sector Organization Chart


Manager, Contracting
Planning & Performance Div.

Manager Contracting
Manager, Manager, Manager, Manager,
Contracting Dept.- EOA Contracting Dept.- COA Procedures, System &
Contracting Dept.- WOA Contracting Dept.- SOA
Claims Dept.

Manager, Manager,
Transmission Contracts Contracting Procedures Div.

Manager, Generation Manager,

& Distribution Contracts Div. Claims Div.

Manager, General Manager, Contracting

Services Contracts Information System Div.

Manager, Contracting
System Support Section

Issue Date: April 2015 Replaces : June 2010
Section 32
[Forms of Interest to Contractors]

Form No. Title

1. CD 039A Main Contractor Visa Endorsement Request
2. CD 039H Subcontractor Visa Endorsement Request
3. CD039G Main Contractor Additional Manpower Endorsement Request
4. CD 040A ID Request Authorization for Main Contractor Employees
5. CD 040B ID Request Authorization for Subcontractor Employees
6. CD 041 Subcontractor Approval Request

The above forms may be obtained from the SEC Website (Business Contracting) at the
following link:

Issue Date: April 2015 Replaces : June 2010