If your company successfully demonstrates adherence to Schedule G, you achieve two things:

Saudi Aramco maintains a central contractor database. If your company incurs a Level 3 violation, you will be flagged. Winning future contracts becomes mathematically impossible as the bid review committee will see a "High Risk" label attached to your commercial registration (CR).

Termination of the contract and removal from the Aramco Supplier List . Conclusion

| Violation | Immediate Penalty | Long-term Consequence | | :--- | :--- | :--- | | Using an unapproved subcontractor | Withholding of 20% of invoice value | Suspension of bidding rights for 6-12 months | | Failure to flow down HSE requirements | Daily fine of SAR 10,000 ($2,666) per violation | Mandatory safety recertification at contractor’s cost | | Off-payroll working (disguised employees) | Deemed employment order + back payment of GOSI | Referral to Public Prosecution for fraud | | Subcontracting more than approved % | Immediate termination for cause | Name published in Aramco’s "Disqualified Contractors" list (shared with PIF and NEOM) |

: Company-directed sourcing for specific materials.

A unique aspect of Aramco megaprojects is that the company frequently pre-purchases or supplies critical long-lead items directly to the contractor to avoid schedule slippage.

: Strict ratios for toilets, showers, and laundry facilities relative to the camp population.

Ensure that all supplied materials meet Aramco's technical and safety requirements.

: Saudi Aramco conducts unannounced audits of contractor camps and worksites. Non-compliance can result in heavy financial penalties or the suspension of work.

is a foundational, mandatory legal artifact embedded within all engineering, procurement, and construction (EPC) contracts issued by the Saudi Arabian Oil Company (Saudi Aramco). It dictates the strict operational boundaries, ownership rights, quality compliance metrics, and supply-chain preferences for materials, tools, and equipment deployed on any Aramco-sponsored project. For global engineering firms, regional contractors, and supply-chain professionals, achieving comprehensive alignment with Schedule G is a non-negotiable prerequisite to protecting project margins and avoiding severe structural penalties. The Architecture of Schedule G

Unlike custom "Buy-Out" items, Schedule G materials are assigned a specific Material Number in Aramco’s SAP system.

Provision of comprehensive medical insurance for all employees and their dependents.

While the full document is ~20–30 pages, these are the clauses that most impact vendors.

A standard Schedule G runs between 30 and 50 pages, depending on project-specific addenda. However, nearly every version revolves around six critical pillars.

Based on years of contractor audits, here are the three most common reasons companies fail Schedule G compliance:

Would you like a side-by-side comparison of Schedule G vs. a typical FIDIC or NEC contract clause?