After its official launch. What do you know about the Contractor Coding Initiative?

The initiative aims to regulate the contracting market by monitoring defaulters and excluding them from competitions, with rehabilitation and performance improvement tracks.

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As part of its efforts to regulate the construction market and improve the efficiency of project implementation, the Ministry of Municipalities and Housing announced the launch of the "Contractor Certification» initiative, which aims to enhance the efficiency of municipal project delivery and improve the quality of implementation, as well as ensuring that contracts are awarded to contractors with the necessary experience and technical capabilities, thereby enhancing transparency and increasing confidence in government projects.

Regulation of the Contracting Market

The initiative involves compiling a periodic list of contractors who have defaulted or violated regulations in municipal and housing sector projects; such contractors are barred from participating in new tenders organized by the Ministry. This is part of efforts to regulate the construction market and incentivize contractors to adhere to approved technical and implementation standards.

The Ministry explained that the initiative contributes to creating a more disciplined implementation environment through specialized committees responsible for reviewing and verifying data received from bid evaluation committees in the municipal secretariats. An updated list of contractors is issued every six months, providing greater opportunities for qualified contractors and limiting the awarding of projects to entities unable to execute them efficiently.

The "Contractor Coding» initiative also includes a clear mechanism for filing appeals and requests to shorten the duration of inclusion on the list through rehabilitation and development programs aimed at raising contractors" performance levels and improving their technical and administrative capabilities. These requests are reviewed by specialized committees according to specific criteria, including an assessment of past performance, credit rating, and the level of commitment to executing government projects.

Enhancing Project Quality

The Ministry emphasized that the launch of this initiative aligns with the objectives of the Kingdom’s Vision 2030, which aims to increase the efficiency of government spending, enhance the quality of capital projects, and improve governance in government contracting. The initiative also contributes to supporting the development of urban infrastructure and building more efficient and sustainable cities, which will positively impact the quality of life across the Kingdom.

She added that the »Contractor Classification System” is a regulatory tool that supports municipal authorities, enabling them to make more accurate decisions when selecting contractors, in line with their technical capabilities and capacities, and ensuring that infrastructure projects are delivered with high quality and according to approved timelines. The Ministry has made the initiative’s procedural guide available on its website.