The Contractors’ Classification System (CCS) in the Kingdom prevents government agencies, authorities, institutions and bodies from dealing with unclassified contractors. The dealings include awarding or accepting any offer or bid for any projects that are subjected to classification. As per the system, the Ministry of Municipal and Rural Affairs and Housing will undertake the classification, and issue the classification certificate, as well as amend, suspend and cancel it in coordination with the relevant authorities. The fields, activities, and degrees of classification of contractors will be determined and modified by a decision of the minister, provided that the identification of classification fields and activities is based on the national guide for economic activities. The system prequalifies contractors to ensure their capability and performance. The contractor will be classified in the degree he deserves in one or more fields and activities of the classification on the basis of a number of criteria in terms of financial capacity based on the lists of contractors; technical, administrative and executive capabilities such as organizational structures and administrative and technical cadres, and the total number, type and value of projects. The contractor shall amend his classification certificate by raising, adding or deleting any field, provided that his request is vindicated by information and data that are supportive to it. The system allows one or more contractors join hands in implementing the same project, provided that each one of them is classified in the field of project implementation, and at least one of them is classified in the field and degree that are required for its implementation. The degree of classification of the remaining joint partners is required to be the same degree for the implementation of the project or only one degree lower. According to the system, anyone who violates the provisions of the law will face punitive measures with lowering of his classification, with the possibility of suspending his classification or preventing its renewal for a period not exceeding five years, as well as the possibility of canceling the classification. It is noteworthy that the total number of establishments specialized in the contracting sector reached 175,500 by the end of 2020.