Any approved subcontractor must agree in writing to be bound by all terms of your prime contract with Aramco—including safety standards (SAP-101), environmental regulations, and the Contractor’s Code of Conduct. Failure to flow down Schedule G to subcontractors is itself a breach.
Based on years of contractor audits, here are the three most common reasons companies fail Schedule G compliance:
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
In 2021, a major Asian EPC (Engineering, Procurement, and Construction) contractor was awarded a $400 million pipeline project for Aramco. The contractor subcontracted trenching work to a local firm without submitting Schedule G for approval. The local firm then hired undocumented workers from a third-party labor supply company.
An Aramco safety patrol discovered workers without Aramco-issued SIDA badges. The result: Any approved subcontractor must agree in writing to
The contractor’s CEO later admitted in arbitration that "failing to file Schedule G cost us more than the entire profit margin of the project."
Schedule G divides subcontractable work into two schedules: The contractor’s CEO later admitted in arbitration that
Within Saudi Aramco procurement or project management documents (e.g., Form 175 or SA-1000 series), Schedule G sometimes appears as: