Contractor classification system to boost competition, targets 7 sectors: Minister

Majid Al Hogail, Minister of Municipal, Rural Affairs and Housing

The contractor classification system will enhance competition, and give new contractors outstanding competencies and greater opportunities, according to Minister of Municipal, Rural Affairs and Housing, Majid Al Hogail. 

The system is based on a balanced assessment that combines quantitative and qualitative standards, Al Hogail said on his official Twitter account.  

The new contractor classification system depends on technical evaluation, which includes technical specialties for the enterprise employees according to the sector, years of experience for cadres, level of wages, nationalization rate, and percentage of Saudi women working in the enterprise. 

The system is also determined by credit assessment, which encompasses administrative governance, risk management, enterprise sources of income, fixed and variable assets, and the publication of periodic performance reports. 

Meanwhile, the system targets seven sectors, namely building and construction, operation, maintenance and services, communications and information technology, real estate development, exhibitions and conferences, engineering advisory facilities, as well as food and catering.

According to data available in Argaam, the Saudi Cabinet approved, on Aug. 24, the contractor classification system.