Legal Compliance & Regulations
Legal Compliance & Regulations
Aligned with KSA Construction Laws, Mega Project Frameworks & International Best Practices
1. Introduction
The Legal Department at BEC Arabia is responsible for ensuring full compliance with all regulatory, contractual, and legal obligations related to the company’s operations, including procurement, contracting, labor laws, taxation, dispute resolution, and risk management.
Compliance with KSA regulations, Public Investment Fund (PIF) mega project requirements, and international legal standards (FIDIC, ISO, HSE, and anti-corruption laws) ensures BEC Arabia operates legally, ethically, and securely while mitigating legal risks.
📂 Stored in SharePoint – Legal Compliance & Regulations
2. Regulatory Authorities & Governing Laws
The Legal Department ensures compliance with the following regulatory bodies and legal frameworks:
Regulatory Authority
Applicable Laws & Regulations
Key Compliance Requirements
Ministry of Commerce (MOC)
Saudi Commercial Law
Business registration, licensing, contracts
Saudi Contractors Authority (SCA)
Contractor licensing & regulatory compliance
Prequalification, contractor classification
Saudi Public Procurement Authority (Etimad/NUPP)
Government project procurement laws
Bidding, public tenders, government contracting
Ministry of Labor & Social Development (MLSD)
Saudization (Nitaqat), labor laws & contracts
Employee contracts, workforce Saudization
General Authority of Zakat & Tax (GAZT)
VAT, Zakat, Withholding Tax compliance
Corporate tax reporting & VAT compliance
Saudi Investment Authority (SAGIA)
Foreign investment & business regulations
Licensing for foreign construction companies
KSA Arbitration Center & Commercial Courts
Arbitration, contract disputes, legal claims
Dispute resolution, mediation, arbitration
📂 Stored in SharePoint – Regulatory Framework
3. Contractual Compliance Regulations
3.1 KSA Public Procurement Law (Etimad & NUPP Guidelines)
Governs all public tenders and government contract bidding processes.
Ensures fair competition, transparency, and legal accountability in mega project tenders.
Requires strict financial and technical compliance for prequalification.
BEC Arabia Compliance Process: ✅ Prequalify for tenders on Etimad & NUPP platforms. ✅ Submit legally vetted contracts before engaging in government projects. ✅ Maintain compliance records & bid documentation for audits.
📂 Stored in SharePoint – Public Procurement Compliance
3.2 FIDIC Contract Compliance
All construction contracts must follow FIDIC (International Federation of Consulting Engineers) guidelines.
Includes compliance with:
General Conditions of Contract (GCC)
Change Orders & Variations Protocol
Payment & Performance Bond Requirements
BEC Arabia Compliance Process: ✅ Use FIDIC-approved contract templates for projects. ✅ Conduct contract compliance audits before finalizing agreements. ✅ Establish legal risk assessments for high-value contracts.
📂 Stored in SharePoint – FIDIC Contract Guidelines
3.3 Joint Venture (JV) & Subcontracting Compliance
Ensures all JV partnerships & subcontractor agreements comply with Saudi licensing laws & financial obligations.
Legal verification of subcontractor prequalification, Saudization adherence, and performance obligations.
BEC Arabia Compliance Process: ✅ Conduct legal due diligence on all JV partners. ✅ Verify subcontractor licensing & Saudization (Nitaqat) compliance. ✅ Include liquidated damages & dispute resolution clauses in contracts.
📂 Stored in SharePoint – JV & Subcontractor Compliance
4. Corporate & Financial Compliance
4.1 Tax & Zakat Compliance (GAZT Regulations)
Corporate Tax Compliance:
VAT Registration & Reporting (5% VAT on services)
Withholding Tax (WHT) for foreign suppliers
Annual Zakat Filing for corporate tax compliance
BEC Arabia Compliance Process: ✅ Maintain tax records & VAT invoices for financial audits. ✅ Ensure accurate withholding tax deductions on international contracts. ✅ Conduct annual Zakat & tax reporting in line with GAZT requirements.
📂 Stored in SharePoint – Tax Compliance Reports
4.2 Saudization (Nitaqat) & Labor Law Compliance
Minimum Saudi workforce requirements under Nitaqat program.
Compliance with Saudi labor contract laws, employee benefits, and work permits.
BEC Arabia Compliance Process: ✅ Hire qualified Saudi employees to meet Nitaqat thresholds. ✅ Ensure all employee contracts comply with Saudi labor law. ✅ Conduct quarterly audits of HR compliance records.
📂 Stored in SharePoint – Labor Law Compliance
5. Anti-Corruption & Ethical Business Compliance
5.1 Anti-Bribery & Anti-Corruption Laws
Strict compliance with KSA Anti-Bribery Law (Royal Decree No. M/36).
Ensures no facilitation payments, illegal commissions, or unethical dealings.
BEC Arabia Compliance Process: ✅ Implement zero-tolerance anti-corruption policies. ✅ Conduct legal due diligence on all suppliers & subcontractors. ✅ Ensure all financial transactions are recorded for audit purposes.
📂 Stored in SharePoint – Anti-Corruption Compliance
6. Dispute Resolution & Legal Risk Compliance
6.1 Dispute Resolution Framework (KSA Arbitration & Mediation)
All contractual disputes must be resolved through mediation or arbitration before litigation.
Follows the KSA Arbitration Law (Royal Decree No. M/34) and FIDIC dispute resolution mechanisms.
BEC Arabia Compliance Process: ✅ Establish mediation & arbitration clauses in contracts. ✅ Maintain detailed contract records to defend legal claims. ✅ Utilize the KSA Arbitration Center for commercial disputes.
📂 Stored in SharePoint – Dispute Resolution Framework
7. Legal Compliance Audits & Reporting
7.1 Compliance Audit Procedures
Quarterly legal compliance audits to ensure contract & regulatory adherence.
Annual tax, labor law, and corporate governance audits.
Automated risk assessments for contract breaches and litigation risks.
BEC Arabia Compliance Process: ✅ Conduct compliance checklists before signing contracts. ✅ Perform monthly legal risk reporting for high-value projects. ✅ Store audit reports & compliance certifications in SharePoint.
📂 Stored in SharePoint – Legal Compliance Audit Reports
Conclusion
The Legal Compliance & Regulations Framework at BEC Arabia ensures full regulatory adherence, legal risk mitigation, and structured dispute resolution. By aligning with Saudi laws, PIF project standards, and international best practices, BEC Arabia ensures a legally secure and compliant operational framework.
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