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Saudi Arabia has again asked contractors and associated companies to get a government rating as part of a drive to regulate the domestic construction market and tackle persistent project delays, local newspapers said on Tuesday.
In a statement posted recently on its website, the Municipal Affairs and Housing Ministry told all contractors, engineering offices and other associated firms to register for rating as a prerequisite for bidding for public projects, they said.
“The Ministry said it intends to launch a drive to encourage contractors and all other related companies to register and get rating,” Alwatan daily said.
“The Ministry aims to explain the benefits of rating for contractors and identify the obstacles which prevent them from getting rated by the Ministry.”
It said companies would be rated according to their financial, technical and executive resources and capabilities, as well as their ability to manage and execute projects.
In a statement in late 2021, the Ministry said it intends to issue a detailed law outlining terms for rating of contractors and warned those who fail to register with the Saudi Contractors’ Authority to qualify for rating would be banned from bidding for projects.
Saudi Arabia, which controls the world’s second largest proven oil deposits, has already started enforcing a ban on bidding for government projects by contractors who are not rated or registered in the Gulf Kingdom.
More than 140,000 construction companies, mainly small, medium and family firms, operate in the Gulf kingdom but only a fraction of them are rated or registered.
