KSA blacklist threat looms for 1,500 contractors

KSA blacklist threat looms for 1,500 contractors
Updated 11 July 2014

KSA blacklist threat looms for 1,500 contractors

KSA blacklist threat looms for 1,500 contractors

About 40 percent of government projects have been disrupted for various reasons, said Fahd Al-Hammadi, chairman of the National Committee for Contractors at the Council of Saudi Chambers (CSC).
“These disruptions may lead to some 1,500 contractors being blacklisted after withdrawing their projects,” he said. He urged government agencies to extend the deadlines for small contractors to complete their projects.
He said the growing numbers of disrupted projects would affect the Kingdom’s development. “We need drastic solutions for this problem,” he said, adding that the problem has turned into a phenomenon due to the lack of strategy.
Al-Hammadi said contractors of big projects such as King Abdullah Financial City, mega economic cities and metros have received a one-year extension to complete their work, demanding a similar gesture to save small contractors.
He urged committees in charge of withdrawing projects from contractors to help them solve their problems.
Most contractors are suffering from a shortage of workers following the implementation of the Kingdom’s new labor laws.
Al-Hammadi estimated the total value of disrupted government projects at SR100 billion.
According to one report, there are about 60,000 disrupted municipal projects, followed by 25,000 in the transport sector, 20,000 each in the infrastructure and public education sectors, 15,000 in health and 10,000 in the higher education sector.