- Supply Contract: Official Template for Goods and Services Procurement in Saudi Arabia

Introduction

The Supply Contract is one of the most widely used agreements between Saudi government entities and suppliers. Etimad has issued an official contract template for this purpose that ensures full compliance with the Government Tenders and Procurement Law, while clearly defining the legal relationship between both parties.

🔗 Download General Supply Contract PDF

Scope of the Contract

The contract obliges the supplier to deliver specific materials, equipment, or products that meet approved technical specifications. The template includes:

• Detailed identification of the required goods
• Delivery timeline and receipt schedule
• Delivery location (to government warehouses or project sites)

Key Clauses in the Contract Template

1. Contract Duration

The delivery duration is defined in days or months from the contract signing date, with provisions for limited extensions under specific conditions.

2. Contract Value

The total contract amount, including VAT, is stated clearly, along with the payment method (lump sum or in phases based on milestones).

3. Payment Terms

Payment is conditional upon submission of an official invoice and a performance certificate from the government entity. Payment is due within 30 days of invoice approval.

4. Penalties

A delay penalty of 1% per week is applied, with a maximum of 6% of the total contract value, unless the delay is due to acceptable reasons.

5. Modifications

Adjustments to quantity or specifications may be made post-signing, provided both parties agree and the changes are officially documented.

6. Contract Termination

The government entity has the right to terminate the contract in case of supplier breach or significant execution delays.

7. Warranty

The supplier must provide a warranty on the delivered goods for a period of no less than 12 months from the final delivery date.

When Should You Use This Template?

• When contracting for the supply of office, medical, or electronic supplies.
• For small- to medium-scale projects that don’t involve operations or construction.
• When a government entity requires a fast, standardized, and official agreement.

Benefits of Using the Etimad Template

• Clear legal protections for both parties
• A recognized format that facilitates review by oversight bodies
• Compliance with the regulations of the Expenditure and Projects Efficiency Authority

Conclusion

The official Supply Contract from Etimad is a legally sound and well-structured tool for government procurement activities. It ensures transparency, fairness, and regulatory compliance—making it a highly recommended option for all supply-related government agreements.