The failure to implement the global construction contract «FIDIC» despite the approval of the Ministry of Finance to implement it in government projects has led to the reluctance of a number of international companies to enter the Saudi market to implement mega projects, which negatively affected the quality projects that require technical capabilities and international expertise such as metro projects, railway lines and other future projects, because FIDIC has not yet been implemented, as it is the only guarantor of the rights of all parties.
Dr. Nabil Abbas said in a paper entitled «The impact of applying the new contract on reducing the default of government projects» at the second Saudi FIDIC Contracts Forum, which opened yesterday, which opened for three days. <Dr. Nabil Abbas stated in his paper titled «The impact of applying the new contract on reducing the failure of government projects» at the second Saudi Forum for FIDIC contracts, which opened yesterday and continues for three days: The decision to open the way for foreign companies to work in the field of contracting in Saudi Arabia will not be effective if it is not based on a solid ground of legislation and regulations such as FedEx contracts, which would help attract companies with global experiences and modern capabilities, as well as immunity from the entry of companies that are not committed to international standards, pointing out that the size of the construction sector in Saudi Arabia exceeds 150 billion annually, but suffers a large number of projects that reach 40 percent and most of the reasons are contract issues.
Abbas said in a paper entitled «The impact of applying the new contract on reducing the stumbling in government projects» at the second Saudi FedEx Contracts Forum, which opened yesterday, and most of the reasons are contract issues. Dr. Abbas explained that the FIDIC contract came as a result of continuous efforts and demands made by the contracting sector and its various committees in order to apply it, as it provides the best procedural practices in construction operations, and although a recent study showed that the global FIDIC is identical to the Saudi FIDIC in only 75 items, the latter included better mechanisms and clauses than the old contract that is still currently applied, and the Saudi FIDIC has introduced 46 new items that address construction cases that are more frequently found in Saudi Arabia than in any other country.
Dr. Abbas called for the entry of the construction sector in Saudi Arabia to be included in the FIDIC contract, as it provides the best procedural practices in construction operations. <Dr. Abbas called for the entry of highly experienced contracting companies, which will help the growth of the market, so that Saudi companies benefit through friction with foreign contractors on the one hand, and development benefits by implementing projects on time on the other hand, as international companies will not harm their reputation by delaying projects, noting that the International Federation of Consulting Engineers «FIDIC« praised the decision to establish a Council for Economic Affairs and Development, considering that it will have a great positive impact on the process of managing the economy in Saudi Arabia, especially as a unified reference to unify procedures and end the conflict in decisions, which will contribute in coordinating and organizing work in a efficient manner.
