Article 22 of the competition and government purchase system clearly states that offers should not be excluded because of their low price, unless the offer is 35 percent below the estimation of the government department. The contractors also called to review legislation to guarantee professional competition between all contractors.
Contractors agreed that greed and ignorance drives many contracting companies to get projects by offering the lowest bids, even if the projects were greater than their financial, administrative and logistical abilities. They try to get as many projects in hand as possible, without realizing the consequences.
Abdul Hakeem Al-Sihli, an investor in the construction sector, said that the local market lacked the vision needed for long-term investment. Al-Sihli added that contractors should move away from the idea of getting as many projects as possible, saying that this led to the delay of many development projects. He called for the Ministry of Housing to place contracts for competition instead of awarding them to certain contracting companies.
He also called for government departments to decrease the time slot in which contracts are awarded. Often as long as one to two years, many contractors enter more than one contracting bid. This often leads to companies overextending themselves as they are awarded multiple contracts.
Abdullah Al-Ammar, deputy chairman of the Chamber of Commerce and Industry in the Eastern Province, called for a change to several practices at government departments, including changing the criteria of awarding projects from the cheapest offer to the best offer. He said other variables should also be taken into consideration such as if projects are finished on time, quality and safety standards.
