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Saudi firms to face action for delayed projects

Jeddah, August 22, 2014

Punitive action will be take against companies that do not stick to schedule in implementing contract-based projects in Saudi Arabia, said a report.

Makkah’s Governor Prince Mishaal bin Abdullah has formed a projects committee which will take the threatened action, said the Arab News report.

The contractors responsible for two stalled projects, one of which falls under the Makkah Development Authority, blamed service companies, such as the National Water Company (NWC) and the Saudi Electricity Company (SEC), for failing to set up amenities on the project sites, it said.

The other project is directly affiliated with the NWC.

The committee was formed to guarantee timely implementation and act as a mediator between companies, contractors, consultants and project sponsors, Majdi Zubeidi, regional service director and a committee member, was quoted as saying.

Zubeidi largely blamed delays on failure to guarantee vital services, such as sewage pipes, electricity and flood channels, to the sites.

"The committee found that some projects were experiencing a 10 percent delay, while others were 30 percent behind schedule. The governor ordered the formation of the committee after many projects failed to meet the delivery deadline."

The projects that do not fall under the authority's radar will be referred to the Makkah Provincial Council for discussion among ministers, said the report.

Citizens will also be able to file complaints about delayed projects and a service document for locations with bad services will be distributed among team members, it said.

The penalties will vary depending on what is stipulated in individual contracts, it added.




Tags: Saudi | Companies | Projects | action | delayed |

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