Al-Jadaan directs to settle disputes between contractors, government agencies
Minister of Finance Mohammed Al-Jadaan has directed to settle disputes between contractors and government agencies with regard to the implementation of projects. He urged to offer additional tools to resolve the disputes.
The minister also ordered to disburse dues of contractors for the projects that were implemented earlier as well as for the projects that were stalled.
This was disclosed by Hamad Al-Hammad, chairman of the National Contractors Committee. He said that the decision would reflect positively on the contracting sector, and would contribute to its flourishing and enhanced activity by addressing one of the major challenges facing contractors in terms of the delay in the payment of dues and its impact on stalling projects and affecting companies adversely.
The decision will help companies resolve the problems of financial default, provide liquidity and reduce financial burdens so as enhance their ability to implement and expand projects.
Al-Hammad said that such decisions would stimulate the contracting sector as cash flow is one of its major drivers and contributes to the sustainability of national companies. “The committee remained keen on touching on contractors’ issues and presenting views and proposals on them to the relevant government agencies, including the problem of delaying the disbursement of dues and its impact on the contractor and project implementation,” he said while praising the ability and efficiency of national contracting companies to implement various development projects.
It is noteworthy that the contracting sector in the Kingdom plays a pivotal role in economic development. The number of companies in the sector accounts for more than 176,000 firms, with an annual growth rate of about three percent, and contributes by 5.5 percent to the Kingdom’s gross domestic product (GDP), and by 10.7 percent to the non-oil GDP.
In 2021, the number of projects proposed by the state reached more than 540 projects, with a value exceeding $120 billion, diversifying several sectors, the most important of which are construction, energy, and transportation.
This was disclosed by Hamad Al-Hammad, chairman of the National Contractors Committee. He said that the decision would reflect positively on the contracting sector, and would contribute to its flourishing and enhanced activity by addressing one of the major challenges facing contractors in terms of the delay in the payment of dues and its impact on stalling projects and affecting companies adversely.
The decision will help companies resolve the problems of financial default, provide liquidity and reduce financial burdens so as enhance their ability to implement and expand projects.
Al-Hammad said that such decisions would stimulate the contracting sector as cash flow is one of its major drivers and contributes to the sustainability of national companies. “The committee remained keen on touching on contractors’ issues and presenting views and proposals on them to the relevant government agencies, including the problem of delaying the disbursement of dues and its impact on the contractor and project implementation,” he said while praising the ability and efficiency of national contracting companies to implement various development projects.
It is noteworthy that the contracting sector in the Kingdom plays a pivotal role in economic development. The number of companies in the sector accounts for more than 176,000 firms, with an annual growth rate of about three percent, and contributes by 5.5 percent to the Kingdom’s gross domestic product (GDP), and by 10.7 percent to the non-oil GDP.
In 2021, the number of projects proposed by the state reached more than 540 projects, with a value exceeding $120 billion, diversifying several sectors, the most important of which are construction, energy, and transportation.