Contracting & operations
Subcontracting: from invitation to retention release
Put your works out to subcontractors and invite the ones you want, then run the whole contract in one file: variation orders, extensions, partially certified claims, the advance payment, retention, and every payment the main contractor records and the subcontractor confirms.
Available in the dashboard · tenders and bids on Financial and Complete
- Variation orders approved by both parties
- VAT and retention calculated for you
- Payment records with confirmation of receipt
Invitations & clarifications
Like RFQs: invite the right subcontractors directly and answer their questions before the tender closes.
Direct invitations
Search companies that offer subcontracting and invite them to a draft tender (sent on publish) or an open one.
“Invite only”
Make the tender private so only invited companies see it, and follow each invitation: sent, viewed, declined (with the reason) and bid submitted.
Clarifications
Bidders ask while the tender is open and you answer; “Publish to all” shows the Q&A to every bidder without naming who asked.
Award & contract
Compare bids and award; the contract is created with its lines, advance and retention percentages and payment terms.
Saudi Contractors Authority membership on the contractor profile
A contractor records its membership number and certificate, the Ataam team reviews them, and a “verified by Ataam” badge appears on its card and bids.
“Verified by Ataam” badge
Shown after the Ataam team checks the uploaded certificate; it is Ataam verification, not an official endorsement.
“Verify membership” button
Opens the official public contractor search in a new tab so you can match the number yourself; nothing is copied from it.
A tender requirement
The tender owner can require valid, verified membership and/or a minimum classification grade on invitation, bid and award.
Expiry alerts
Reminders 60, 30 and 7 days before the membership expires and on the day; the badge disappears once expired.
Variation orders & time extensions
Contracts change during execution; every change has a number, a reason and the other party’s approval, and the original value stays visible next to the revised one.
Proposed by either party
The main contractor or the subcontractor proposes a VO with a number, reason and attachments; the other party approves or rejects it with a reason, and it can be withdrawn while proposed.
Add, omit or new line
Change the quantity of an existing line up or down (never below what was already claimed) at the contract rate, or add a new line with its unit, quantity and rate.
Original vs revised value
On approval the lines and contract value are updated and the extension days are added to the end date, showing “Original value” and “Revised value”.
Contract extension
The main contractor extends the contract with a new end date and a reason; the subcontractor asks for more time with a time-only VO. Every extension is logged.
Claim certification — even partial
The subcontractor submits the claim with the quantities done and its attachments; the main contractor certifies it fully or partially, and the amounts are computed on the certified quantities.
Certified quantity per line
Enter the certified quantity or a percentage of the claimed one, with a reason for every line certified below the claim.
The rest goes back to the contract
Uncertified quantity returns to the line balance and can be claimed again in a later claim.
Claim attachments
Measurement sheets and site photos (up to 10 files) on submit or revise, visible to both parties.
VAT on the full certified amount
15% VAT on the certified amount after advance recovery, before retention is withheld.
A worked example
A 1,000,000 contract, 10% advance payment, 10% retention, and a claim certified at 200,000.
- Certified claim (gross)
- 200,000.00
- Advance recovery (10%)
- − 20,000.00
- VAT base
- = 180,000.00
- VAT (15%)
- + 27,000.00
- Retention (10% of gross)
- − 20,000.00
- Net payable
- = 187,000.00
Amounts in Saudi riyals. Retention is withheld after VAT, so releasing it later carries no new VAT.
Advance payment & retention
Both percentages are fixed at award and followed on two contract cards: advance (amount, billed, paid, recovered, remaining) and retention (held, released, requested, balance).
Advance payment billing
Original contract value × advance %; the subcontractor bills it once with an invoice number and 15% VAT, as an e-invoice via Ataam ERP when eligible.
Pro-rata recovery
Each claim deducts its certified gross × the advance %, and the total recovered never exceeds the advance itself.
Release on completion
Once the contract is completed part of the retention is released (commonly 50%), and the defects liability period (365 days by default) starts with a visible end date.
End of defects liability
After the defects liability period ends, the remaining retention balance is released.
Against a retention guarantee
Or earlier, against an accepted retention bank guarantee from “Bank guarantees” that is still active, up to the guarantee amount.
Learn moreRelease approval
The subcontractor requests it or the main contractor releases directly; it is approved or rejected with a reason, and once approved it falls due after the contract payment term.
Payment records & confirmation
Instead of a “paid” flag: every payment against a claim, the advance or a retention release has a record both parties see.
The main contractor records it
Amount (up to the outstanding), date, method (bank transfer, cheque, cash, other), reference and proof of payment.
The subcontractor confirms
“Confirm receipt” once the money reaches the account; partial payments are allowed.
“Paid” automatically
A claim becomes paid when confirmed payments cover its total.
Into collections and the ERP
Advance invoices, claims and approved retention releases appear as receivables in “Collections”, and payments reach Ataam ERP as payment entries allocated to the invoice.
Ataam never holds money
Every payment is a direct transfer between the parties, off the platform: the payer records it and the receiver confirms it. Ataam only calculates the amounts and keeps the record and documents.
Frequently asked questions
What does the “verified by Ataam” badge on a Saudi Contractors Authority membership mean?
It means the Ataam team reviewed the membership certificate the company uploaded. It is Ataam verification, not an official endorsement; to match it yourself use “Verify membership”, which opens the official public search in a new tab.
Who can propose a variation order?
Either party to an active subcontract: the main contractor or the subcontractor. The other party approves or rejects it with a reason, and the proposer can withdraw it while it is proposed. On approval the lines, contract value and end date are updated.
Can a variation order be negative?
Yes. Reducing the quantity of an existing line makes the VO negative (an omission), as long as the resulting quantity is not below what has already been claimed.
What happens to quantity that is not certified?
It goes back to the line balance in the contract and the subcontractor can claim it again later. Each line shows the claimed quantity, the certified quantity and the reason for the difference.
What amount is VAT charged on?
15% on the full certified amount after advance recovery and before retention is withheld. That is why releasing retention later carries no new VAT.
How are delay penalties and other deductions treated for VAT?
A delay penalty reduces the contract price, so it is deducted before VAT and lowers the taxable amount. Materials supplied by the main contractor, back charges and social insurance are deducted after VAT, and the main contractor invoices the materials and services separately. The subcontractor can object to any deduction.
What is the usual retention percentage?
Commonly 10% of each certified claim, set in the contract at award. Part is released on completion and the rest at the end of the defects liability period, or earlier against a retention bank guarantee.
How is the advance payment recovered?
Pro rata: each claim deducts its certified gross × the advance % until the advance is fully recovered, never more; the card shows what remains to recover.
Does money pass through Ataam?
No. The main contractor records each payment with its proof and the subcontractor confirms receipt; the transfer is made directly between the parties. Receivables appear in “Collections” and reach Ataam ERP when linked.
Do all bidders see each other’s questions?
Only what the main contractor publishes with “Publish to all”, shown without the name of the company that asked.
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