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Saudi Arabia has started enforcing unified formal contract forms on a trial basis within a strategy to tackle persistent project delays and disputes.
Courts in the largest Arab economy will refuse handling any project disputes after the new forms are fully enforced at the end of the trial period.
In a statement carried by the Saudi daily Aliqtisadia on Wednesday, the Saudi Contractors’ Authority (SCA) said it has issued 35 types of contract forms that will be govern the construction sector in the world’s largest oil exporter.
SCA said the new forms have been prepared with the help of the Justice Ministry and that only cases and disputes involving these forms will be accepted by courts.
It said the new forms will be approved as the basis of project activity in the Kingdom within the next few months.
“The unification of these forms is intended to ensure quick court proceedings for disputes and tackle project delays and faltering,” SCA added.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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