Termination of Administrative Contracts and Settlement of their Disputes in Light of the New Saudi Government Tenders and Procurement Law and its Executive Regulations

Abstract

This research provides an in-depth study of administrative contracts and their termination, explaining that the termination of administrative contracts is similar to civil contracts, as they end naturally when both parties fulfill their contractual obligations. For instance, a supply contract concludes when the agreed goods are delivered and the financial payment is received. Similarly, a public works contract ends when the contractor completes the required tasks and the administration fulfills its obligations. Additionally, contracts that expire upon the completion of a specified duration may automatically be renewed, forming a new contract that concludes upon the expiration of the renewal period. The research also discusses the disputes arising from the termination of administrative contracts in light of the new Saudi Government Tenders and Procurement Law, issued by Royal Decree No. M/128 on 13/11/1440, and its executive regulations issued by Ministerial Decision No. 1242 on 21/3/1441.

The research adopts an analytical approach, dividing the study into an introduction, two chapters, and a conclusion. The first chapter addresses the termination of administrative contracts, while the second chapter explores the various types of disputes arising from the termination of administrative contracts and the methods of their resolution, whether through administrative committees, administrative courts, or arbitration. The research aims to clarify the concept of disputes related to the termination of administrative contracts, review their different forms, and identify the legal methods available for their resolution, with a focus on the effectiveness of the Saudi Government Tenders and Procurement Law in addressing these disputes.

The analysis draws on relevant regulations and rulings from the Saudi Board of Grievances. In conclusion, the research presents a set of findings and recommendations that highlight the jurisdiction of the administrative judiciary in addressing disputes related to the termination of administrative contracts and their settlement. It emphasizes that termination decisions are subject to judicial review by the administrative courts of the Board of Grievances. The research also points out that administrative contracts may be terminated prior to their scheduled end in certain cases, and stresses that arbitration is considered an exceptional means for resolving disputes related to administrative contract termination, provided that specific conditions are met, while maintaining the validity of the arbitration clause in the contract.