Contractors shy away from new tenders

Contractors shy away from new tenders
Updated 14 January 2014

Contractors shy away from new tenders

Contractors shy away from new tenders

Contractors are not applying for new construction tenders because they are afraid they might not get enough workers to complete their projects, an official from the Jeddah Chamber of Commerce and Industry (JCCI) said here recently.
Abdullah Radwan, head of the JCCI's contractors committee, said the government's crackdown has created a shortage in the industry. However, he believed that the campaign would have positive impact on the market in the long term.
He said the decision taken to clear the market of illegal workers was hasty. “Alternative arrangements should have been made and awareness programs launched before the decision was taken.”
Radwan said the campaign had coincided with an upsurge in construction projects around the country. He said many giant construction projects need foreign workers in every professional category.
“The contracting sector in particular is seasonal. Now most projects have either stopped completely, or been delayed,” he said.
He said the correction campaign has revealed that many construction companies that had handled most of the projects in the past were either “fake or unregistered” firms.
In a related development, sources at Jeddah Islamic Port, which handles most goods in the Kingdom, said there has been a drop in the import of construction materials this year. Experts believe this has contributed to the slowdown in construction projects.
The General Organization for Ports recorded shipments of 8.8 million tons of construction material this year until October, compared to 9.3 million tons for the same period last year.
Meanwhile, an official at Jeddah Islamic Port said the harbor handled the import and export of 50.5 million tons of general goods, grains, vehicles and equipment in the 10 months in question.
The port floor had 3.8 million containers, with over 10 million tons of general goods and 8.8 million tons of construction material.
The port received 3,918 vessels of all kinds and sizes, with 283,654 passengers and 6.3 million head of livestock.