Saudi Gazette report

RIYADH — The Acting Minister of Municipal and Rural Affairs Majed Al-Hoqail has issued a decision making it compulsory for contractors to insure buildings and structures against hidden flaws that appear in buildings and structures after use, whether structural flaws or otherwise, Saudi Press Agency (SPA) reported on Sunday.

The decision is in line with the Council of Ministers decision making it compulsory for contractors in nongovernment sector projects to insure buildings and structures against hidden flaws.

The Cabinet decision gave the Acting Minister of Municipal and Rural Affairs the authority to specify the scope for implementing the decision, in terms of the types of buildings targeted, geographical scope and guarantee period.

The decision is also in line with the Council of Ministers decision approving amendment to the regulation for implementing the Saudi Building Code and the amended executive bylaw for the regulation to implement the Saudi Building Code.

The Ministry of Municipal and Rural Affairs (MMRA) said that implementation would be carried out gradually in four stages.

The first stage comes into effect from the date of issuance of the decision until the end of Dhul Hijja, 1441H to cover high rise buildings (towers), warehouses, hospitals, hotels, buildings for gatherings (mosques – sports facilities), education buildings, malls, telecommunication towers, industrial buildings and installations, buildings below 23 meters, and high risk buildings.

The ministry added that the second stage would start when the first stage comes to an end, until the end of Dhul Hijja, 1442H. During this period, the measures will be implemented, apart from the measures implemented in the first stage, on socializing buildings (wedding halls, movie theaters, drama theaters), healthcare centers, furnished hotel suites, residences, residential buildings, and entertainment services buildings.

The third stage begins at the end of the second stage and goes on till the end of Dhul Hijja, 1443H. The measures will be implemented during this period, in addition to what was implemented in the first and second stages on business buildings like airports, banks, TV stations and post offices.

After that the fourth stage will begin at the end of the third stage and will continue until the end of Dhul Hijja, 1444H. The measures will be implemented during this period, in addition to what was implemented in the third stage, on all types of buildings.

The ministry said that the decision would be implemented on all types of buildings targeted within the jurisdiction of Riyadh city for a period of six months, as of the date of issuance of this decision. It will then be implemented on the remaining cities of the Kingdom, after coordination with the Saudi Arabian Monetary Authority (SAMA).

The Ministry of Municipal and Rural Affairs has stressed that the guarantee period is 10 Gregorian years, beginning on the date the mandatory insurance policy on hidden flaws, comes into effect, after issuing the occupancy certificate for the building.