City Service Provider Classification (Formerly Contractors Classification)
Qualification and certification service for contractors classification and financial and technical evaluation
Qualification Service
Qualification service to obtain City Service Provider Classification Certificate
What is the City Operators Regulation Agency?
The Ministry of Municipal and Rural Affairs and Housing, represented by the Ministry's Agency for City Operators Regulation Affairs, launched the new City Service Providers Classification Program in line with Vision 2030, according to the Contractors Classification System issued by Royal Decree No. M/9 and the Executive Regulations issued by Ministerial Resolution No. 4300274450 dated 09/04/1443H.
The Ministry, represented by the Ministry's Agency for City Operators Regulation, aims through launching this developed system to:
- 1
Evaluate the financial, technical, administrative and executive capabilities of establishments to implement government projects related to their field of work and specialization to provide qualified establishments in various fields.
- 2
Create greater competitiveness in government tenders.
- 3
Ensure the stability of establishments that serve cities and support the economy and development of the Kingdom's cities.
- 4
Contribute to raising the quality of services in the Kingdom's cities.
- 5
Encourage establishments to continuously develop through periodic renewal of the classification certificate.
- 6
Contribute to the qualitative development of business sectors including (construction and building sector - exhibitions and conferences sector - information and communication technology sector and other sectors).
- 7
Develop the agency and make appropriate organizational changes to enable it to perform the tasks entrusted to it in a way that contributes to raising efficiency and productivity.
City Service Providers Classification Mechanism
Definition of Contractors Classification Certificate
At 'Management & Quality' for Business Services, we excel in providing specialized self-consulting services in the field of contractor classification, including issuance, renewal, and upgrading of contractor classification certificates in all sectors.
We make all the necessary arrangements for establishments to obtain the highest grades in credit and technical assessment for the new contractors classification system, to qualify them to obtain the highest grades in contractors classification certificates. Thanks to this specialization, we are the only ones providing self-service programs in city service providers classification (contractors classification).
The contractors classification certificate is considered an indicator adopted by the Contractors Classification Agency to evaluate the ability and specialization of contractors. The City Service Providers Classification Agency has issued a mechanism for credit and technical assessment aimed at measuring contractors' capabilities from financial, technical, administrative and executive aspects to qualify them to obtain a contractors classification certificate at a grade appropriate to their capabilities. This is included in what we offer through the self-advisor program to qualify establishments to obtain a city service providers classification certificate.
Evaluation Mechanism According to the New Contractors Classification System
Credit Assessment
It is a system approved by the City Operators Regulation Agency based on assessing credit capabilities and determining the degree of financial risk of the establishment, which reflects its ability to manage available working capital in project management according to a number of criteria in four axes.
The credit assessment rating in the new contractors classification system is expressed in grades ranging from (AAA the highest grade to D the lowest grade)
Credit Assessment Pillars
Financial Status of the Establishment
- Liquidity Analysis
- Leverage Analysis
- Gross Profit Analysis
- Profit Margin Analysis
- Asset Turnover Rate Analysis
- Cash Cycle Analysis
- Debt and Overdue Payments Analysis
Governance Ratio
- Administrative Governance
- Risk Management Mechanism
- Publication of Periodic Performance Reports
Establishment Comparison with Peers
- Establishment Income Sources
- Fixed and Variable Assets
- Technologies Used in Project Monitoring
- Equipment
Total Number, Type and Value of Projects
- The total number and value of projects executed by the contractor applying for the contractors classification certificate or currently being executed inside or outside the Kingdom, provided that the project completion rate is not less than 50% for implementation projects, and 30% for maintenance, operation and services projects.
Technical Assessment
The limits of these criteria differ according to the size of the establishment, where establishments are divided into:
Micro
Number of Employees: 1 – 5
Small
Number of Employees: 6 – 49
Medium
Number of Employees: 50 – 499
Large
Number of Employees: 500 and above