The Saudi Contractors Authority has completed preparations to implement its Standard Contracts initiative. This includes contacting the organizations nominated to deliver the initiative and preparing its implementation framework.
SCA Secretary-General Eng. Thabet Al-Suwaid said that implementation preparations were complete, but the estimated budget was still awaited. Once the cost was known, the Authority would decide whether to proceed or postpone implementation until funding became available.
He explained that contracts share general legal provisions, while their technical clauses vary according to the many different activities within the contracting sector.
Al-Suwaid said the Authority developed its initiatives through a strategic study of the sector and its stakeholders, including owners of small private projects.
Around 2,310 contractors had registered with SCA. Registration had been approved for 179 foreign contractors, with the remainder being Saudi contractors. Registered contractors employed more than one million people, representing approximately 25% of the sector's workforce. He expected mandatory registration to begin soon.
The Authority also worked with a specialist consultancy on a licensing initiative. A comprehensive study assessed the sector and its challenges. It informed a framework intended to improve the capabilities of contracting establishments and simplify their registration with project owners.
SCA was working with several organizations to have its registration and licensing recognized as an alternative to separate registration with each organization. A single reference platform for contractors and their data would reduce the work involved in registering and qualifying contractors, as well as contractors' need to update the same information repeatedly.
Source: Al Eqtisadiah.
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