This study is aimed to consider the guarantees of imposing sanctions on public works contracts according to the Saudi laws. The study sought to furnish a solid ground for these guarantees and analyze the relevant statutory provisions included therein. It aimed to consider the possible solutions for administrative problems including administrative institutions’ ignorance, and sometimes purposeful overlooking of the importance of such guarantees, resulting in their accountability and consequently erosion of their budgets.

The study is based on the analytical comparative approach that compares the statutory and judicial decrees. It was divided into three parts that dealt with the three guarantees, which must be considered when imposing sanctions on the contractor. The first part, which dealt with acceptance of contractors’ excuses before sanctions are imposed thereupon, was divided into two subsections: (1) excuses’ substantive and formal conditions, (2) excuses scope. The second part, which dealt with the contractor’s right to respond and defend himself included two subsections: (1) The grace period that must be given to the contractor before sanctions are imposing on him, (2) exemption from penalty. The final part dealt with the reasoning of sanctions-related decisions. This part showed how far the administration was committed to provide reasons for its decisions and set forth the conditions of their validity.

The study concluded that guarantees for sanctions imposition in administrative contracts seek to protect the contractor from getting into conflict with the broad administrative authorities. It also ensures administrative deliberation and reconsideration of the sanctions it plans to impose on contractors, as it has to delay such procedure until it has a proof of violation of contractual obligations.