Muscat - The board of directors of the Oman Society of Contractors (OSC) at its last meeting decided to give a proportion of contracts to only those small and medium enterprises (SMEs) and subcontractors who are registered with OSC.
OSC chairman Dr P Mohamed Ali said that a mechanism will be established soon to engage SMEs as subcontractors. To fulfil this, the registration of SMEs with OSC will become mandatory.
The OSC chairman said that in this regard, a delegation of OSC board members will meet the Tender Board chairman on May 1 to discuss the implementation process. He added that discussions with the Tender Board will include the definition of SMEs.
It is understood that the government is in favour of contractors engaging SMEs from the local mohafadah. Names of such SMEs will be listed at the tender stage by the Tender Board. Contractors will be required to engage such SMEs based on their tender stage submission only, without further negotiations.
For the classification and registration of companies, new criteria will be discussed by engaging branches of chambers of commerce in all governorates. The Tender Board and OSC may jointly agree on a set of rules to classifying the SMEs (subcontractors for each mohafadah) and on this basis a system of membership and engagement will be firmly implemented.
Dr Ali explained that among the criteria, work will be awarded only to those subcontractors who perform the work directly and not through sub-subcontractors.
He said that the Tender Board plans to introduce a clause in all tenders compelling contractors to subcontract at least ten per cent to SMEs operating in the governorate where the work is performed.
He further indicated issues such as whether Tender Board would give more preference to contractors who have stated willingness to give more than ten per cent of the contract work to SME contractors, would also be discussed.
The OSC chairman added that while awarding contracts, bidders employing more manufactured products should be given preference.
Earlier, in a meeting with the Finance Minister, the OSC chairman was assured that the ministry will ease the performance bond and may consider only seeking either the performance bond or the retention bond from contractors.
The minister also informed that the Ministry of Finance is at an advanced stage in the revision of standard conditions of contract. He also assured that the ministry will engage OSC to review the revised standard conditions of contract and will take into consideration the suggestions proposed by OSC.
© Muscat Daily 2013
