As the new government tenders and procurement system is expected to be issued by the Ministry of Finance during the first quarter of next year, the head of the system development team, Dr. Salem Al-Mutawa, confirmed that the Board of Experts has completed the study of the system, which includes many clauses that protect the contracting industry in the Kingdom.
During a recent seminar organized by the Eastern Chamber During a seminar organized by the Eastern Chamber recently, Al-Mutawa added that the new system ensures that contracting companies do not exit the market during the coming period.
5-10 days to file award grievances
Al-Mutawa pointed out that the Ministry of Finance has prepared a conflict of interest regulation and a regulation on the behavior and ethics of those responsible for implementing the provisions of the system and its executive regulations, and these regulations are issued by decisions of the Council of Ministers.Mutawa explained that the new system stipulates that contracting companies will not leave the market in the future. He pointed out that the law stipulates a “pause period” after the announcement of the winner of the competition, not less than 5 days and not more than 10 days, indicating that this period aims to give room for grievances to contractors regarding the award mechanism at the government agency, pointing out that the law gave the government agency 7 days to respond, after which the contractor grieves to a committee in the Ministry of Finance within 3 days, stressing that the decision of the ministerial committee is binding for the government agency and not binding for the contractor, and he can resort to the Board of Grievances.
Mutawa pointed out that the ministerial committee's decision is binding on the government agency and not binding on the contractor, and he can resort to the Board of Grievances.
He pointed out that the committee to consider the grievances of the competitors is by considering the award decision and the decisions taken by the government entity during the bidding and award procedures and the change and amendment of prices, stressing that the committee's decision is binding on government entities only.
Electronic awarding of contracts
The head of the tender system development team pointed out that the system grants local content a mandatory percentage of the total value of contracts as well as granting a mandatory percentage for medium and small enterprises of the total value of the contract, adding that all stages of contracts will be through the electronic portal from the beginning of approval, proposal, award and payments, stressing that government agencies will not offer projects without financial allocations, so that the financial resources for projects will be fully reserved, and therefore the various competition procedures will be through the electronic portal.Government agencies will not offer projects without financial allocations, so that the financial resources for projects will be fully reserved, and therefore the various competition procedures will be through the electronic portal.
“Contractors Authority”: 83 observations about the tender system
<For his part, the President of the Saudi Contractors Authority, Engineer Osama Al-Afaleq, confirmed that the Authority contributed a number of visuals that were taken by the Ministry of Finance in the preparation of the government tenders and procurement system, where it organized a workshop with the participation of workers in the sector, indicating that the Authority provided more than 83 observations on the tenders system.
Al-Afaleq pointed out that the Ministry of Finance was keen to participate in the participation of all parties in expressing their views to come up with an integrated concept on the new system, pointing out that the Contractors Authority is still waiting for the amendment of the government contracts system.
Afaleq added. Al-Afaleq added that the government tenders and procurement system introduced many observations on the previous system, describing the new system as the most balanced and transparent, noting that the launch of the electronic platform «Etimad» contributed to enhancing transparency.
“Subcontracts” and partial project withdrawal
On the sale of contracts to other contractors, Al-Afaleq pointed out that it existed in the past, pointing out that the process of contracting part of the projects with subcontractors is a well-known process, adding that large companies are trying to assign some work to small and medium enterprises to revitalize their role in the market.He explained that the process of selling contracts to subcontractors has contributed to enhancing transparency. He explained that the process of selling contracts carries with it great risks, excluding that this is a major reason for the failure of projects, pointing out that the law stipulates that the main contractor bears full responsibility for the implementation of the contracted project.
He pointed out that the process of contracting part of the projects with subcontractors is a well-known process. It is worth noting that the new tender system includes the assignment of the contract and subcontracting after the approval of the government entity and the Ministry of Finance in accordance with the conditions specified by the executive regulations, as well as the government entity may provide and disburse payments directly to the contractor or subcontractor in accordance with the controls specified by the executive regulations, the system canceled the rule of withdrawing the project or works and implementation at the expense of the contractor and may partially withdraw the project or works at the expense of the contractor.
10Foundations that ensure the efficiency of the new government tenders system
- Government procurement procedures and processes
- Protecting public money
- Limit the influence of personal interests
- Countering influence peddling
- Achieving spending efficiency
- Governance and transparency
- Providing fair treatment for competitors
- Equality for all customers
- Equal opportunity
- Promote economic development
