Contractors in Saudi Arabia slapped with heavy fines; several projects withdrawn

RIYADH — The Transport Ministry imposed fines and other penalties to the tune of SR156.8 million on a number of companies and contractors for substandard performance during the year 2018, the business daily Al-Eqtisadiah reported on Monday.

The ministry said it had also withdrawn as many as 176 projects from a number of contractors for unsatisfactory execution.

The ministry has appointed a special team to evaluate the performance of the contractors so as to take disciplinary measures against them including the total withdrawal of the project.

The team will withdraw the project from the contract, impose fines and invite new bids or ask the same contractor to make the required corrections and amendments according to the terms and conditions of the contract, the ministry said.

Meanwhile, the ministry said a special team was making an in-depth study on a proposal to introduce toll on some roads.

It said the study would be completed in early 2020 and would be submitted to the supreme authority to make a final decision.

Transport Minister Nabil Al-Amoudi had earlier said the ministry was currently executing 460 projects to develop the sector of transport in the Kingdom.

He said five contracts for new projects for the traffic safety worth SR621 million were signed and added that the projects would cover all parts of the Kingdom.

Al-Amoudi said the ministry was closely working with the Directorate General of Traffic to improve road safety and to cut down deaths and injuries due to accidents.

He said the ministry was continuing its surveillance of the roads to ensure safety and added that it was continuously reviewing statistics released by the Traffic Department periodically.