Fahd Al-Hammad of the chamber’s contractors committee also claimed the difficulties faced by foreign contractors in implementing government contracts on time is in stark contrast to Saudi companies, who strive to fulfill their commitments.
Al-Hammad was talking after the Education Ministry recently warned a Chinese company about the long time it was taking to complete a 14-month SR2 billion contract for the construction of 200 schools.
The contract was awarded to the company last year. The contractor was also exempted from many regulations governing the issuing of visas, importing heavy equipment and grading of contractors.
“On the other hand, government departments strictly applied all terms and conditions including penal action against any national contractor working on their projects. But they do not find it easy to apply such measures on foreign contractors,” Al-Hammad said.
He added that Saudi contractors have urged government departments to implement a decision from the Council of Ministers restricting foreign contractors to government projects only, and only after inviting tenders from both Saudi and overseas companies.
The decision also stipulated that no contract should be given directly to foreign contractors so that the rights of Saudi companies are guaranteed. Domestic contractors have also called on foreign firms to have a Saudization clause written into their contracts.
Al-Hammad urged government departments to encourage Saudi contractors so that they remain competitive when fighting for government contracts.
“It is not a secret that the national economy can gain vastly by empowering national contractors and letting them undertake government projects,” he said.
He also said the real investment for the country is in its citizens and establishments, as Custodian of the Two Holy Mosques King Abdullah has said on many occasions, he added.
