Contractors must provide cost comparisons to justify sourcing decisions if choosing non-local options. Materials Management System
Schedule G explicitly forbids engaging individuals as "independent contractors" when they function as employees (i.e., using company tools, working set hours, being directed in detail). This provision mirrors the UK’s IR35 rules but is enforced more aggressively by Aramco. Violation results in being deemed an employee of the prime contractor, triggering back-pay of Saudization penalties, GOSI (General Organization for Social Insurance) contributions, and fines. saudi aramco schedule g
Would you like a side-by-side comparison of Schedule G vs. a typical FIDIC or NEC contract clause? Violation results in being deemed an employee of
| Level | Example | Penalty | | :--- | :--- | :--- | | | Missing a fire extinguisher inspection tag; dirty restroom | $1,000 - $5,000 fine; 24-hour notice to correct | | Level 2 | Working at height without a lanyard; stacking pipes improperly | $10,000 fine; Stop Work Order; Supervisor sent for retraining | | Level 3 | Bypassing a lockout/tagout; entering a confined space without a permit | $50,000+ fine; Immediate termination of contract; Blacklisting of the company | | Level | Example | Penalty | |
| Schedule | Content | |----------|---------| | A | Scope of Work / Specifications | | B | Price & Payment Schedule | | C | Delivery / Performance Timeline | | D | Special Conditions (project-specific) | | | General Commercial Conditions |
Reading Schedule G is passive. Implementation is active. Here is a five-step checklist for project managers.
Even though these are general materials, Aramco’s Vendor Inspection Group (VIG) may assign a or Cat-IV inspection level.