SAUDI ARABIA

Contracting industry to undergo revamp

December 16, 2017
The Saudi Contractors Authority has announced a package of reforms to revitalize the sector and attract Saudi cadres to work in the industry.
The Saudi Contractors Authority has announced a package of reforms to revitalize the sector and attract Saudi cadres to work in the industry.

Saudi Gazette report

JEDDAH — The Saudi Contractors Authority is scheduled to launch a package of reforms in early January, including a membership benefits scheme and a database for identifying contractors. The reforms will be implemented gradually during the year, Al-Eqtisadiah newspaper reported.

Thabit Al-Swaid, secretary-general of the authority, said the Contractor Search Program would be launched in January 2018. A database will be created for contractors in each region, including their business type and scope of work, in addition to the projects completed by them and evaluation and ratings of the services rendered.

Al-Swaid explained that the authority is waiting to update the classification of records at the Ministry of Commerce and Investment. The authority seeks to launch the reform program in an integrated manner to provide the clients with consummate services and detailed information about the contractors, he said.

Al-Swaid pointed out that the search service would be accessed at muqawil.org. He invited all contractors to register for the authority›s membership to benefit from the service.

He added that the authority was in the process of launching a membership service program also in January, which targets to register all construction companies in the Kingdom as well as their owners and employees with the authority.

Al-Swaid said the authority was currently negotiating with major insurance companies the terms of health and vehicle insurance coverage for employees in the sector. It is also holding discussions with restaurants, airline companies, hotels and other service sectors about a consolidated package for executives and employees in the contracting industry.

The authority aims to make available discounted rates at the beginning of next year to all contracting firms registered with it irrespective of their size and reach.

All employees working in the sector will have the right to access the services at discounted rates, Al-Swaid said, adding that the goal of the project was to attract as many national cadres as possible to work in the sector.

“We have 34 initiatives to be launched by the authority gradually, but we want to provide something tangible, including rules and regulations, while addressing the challenges facing the contractors,” he said.

As for mandatory registration with the authority, Al-Swaid said the registration of companies wishing to enter government tenders started in the middle of November.

The Ministry of Finance obliges all contractors wishing to enter government tenders to register with the authority and obtain a membership certificate. The registration fee ranges from SR750 to SR10,000.

The fee is determined by the number of workers in a company. It starts at SR750 for contractors with no more than five employees and SR1,500 for contractors with five to 50 workers. Establishments having 50 to 250 workers will pay a fee of SR5,000 while major contracting companies with a labor force of more than 250 workers will pay SR10,000.


December 16, 2017
2229 views
HIGHLIGHTS
SAUDI ARABIA
4 hours ago

FDI inflows to Saudi Arabia jump 16%, reaching over SR13 billion in 4Q of 2023

SAUDI ARABIA
4 hours ago

Saudi pavilion to showcase Manal AlDowayan's 'Shifting Sands: A Battle Song' at Venice Biennale

SAUDI ARABIA
4 hours ago

Red Sea International Airport to welcome first foreign flight in April