When does a progress payment become due?

Reconcile the application, certification and receipts to establish the current payment due.

Sources reviewed

The Saudi legal rule

Payment is ordinarily due on receipt unless agreed otherwise. For sectional or unit-priced work, payment corresponds to inspected and accepted work where the completed part is distinct or significant to the whole. [1]

What the records establish

Reconcile the application, engineer’s certificate and acceptance under the approval matrix. Separate cumulative value from the current period and account for advances and previous payments under the contract. If the court appoints an expert, ask it to define the technical question in the order. The expert can reconcile measured quantities to acceptance certificates and unit rates and identify uninspected stages. [4]

Likely defence and next step

If the owner says certification was provisional, examine reservations, payment dates and retention terms. Ask for a line-by-line rejection and payment of the reconciled portion.

Applicability on 2026-10-30

Published on 19 June 2023, the law took effect on 17 December 2023. [2][3] It applies to commercial transactions where compatible with their nature and no special commercial provision governs. For earlier events, check whether a party invokes a conflicting applicable provision or judicial principle, or a time bar had already begun to run before commencement. [2]

Sources

  1. نظام المعاملات المدنية | Saudi Civil Transactions Law 469
  2. مرسوم الإصدار ونفاذ النظام | Promulgation and commencement Royal Decree M/191, clauses V–VI; Civil Transactions Law, art. 721
  3. أم القرى | Official Gazette Cabinet Resolution 820, publication on 1444-12-01 AH
  4. نظام الإثبات | Evidence Law 110–111

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