The Saudi Contractors Authority in cooperation with Union of Saudi Chambers launched an awareness campaign aimed at promoting the use of model contracts in the contracting sector, as part of joint efforts to regulate the sector, raise the level of transparency and maintain the rights of all parties in construction projects.
Motivating contractors to adopt model contracts
The campaign aims to motivate contractors and owners to adopt model contracts as a unified legal tool that contributes to regulating the contractual relationship between the two parties, especially in small and medium-sized projects, ensuring the preservation of rights and enhancing the efficiency of implementation and market stability.
The Federation of Saudi Chambers explained. <The Federation of Saudi Chambers explained that this initiative comes within the Federation's efforts to support the sustainability of the contracting sector and develop the business environment by spreading awareness of the importance of adopting modern legal practices that increase the reliability of business transactions in the Saudi market. For its part, the Saudi Contractors Authority emphasized that model contracts are one of the most important regulatory tools that have contributed to raising the level of preventive justice and reducing project failure resulting from contractual disputes, noting that the adoption of these contracts contributes to reducing the burden on the judicial authorities and minimizing disputes through a standardized formulation that takes into account the balance between the parties.
The Saudi Contractors Authority (SCA) provides through the Muqawal platform (www.muqawil.org) 36 model contracts that are approved and fully documented electronically, facilitating contracting and payment processes and ensuring the quality of work in accordance with international best practices.
This campaign comes in the context of joint efforts between the Federation of Saudi Chambers and the Contractors Authority to support the realization of the objectives of the Kingdom's Vision 2030 in developing systems, stimulating the business environment, and building a strong and sustainable contracting sector that keeps pace with the developmental renaissance witnessed by the Kingdom.
