Housing Ministry launches new contract package for municipal, residential sectors

Ministry of Municipal and Rural Affairs and Housing's headquarter 

Saudi Arabia’s Ministry of Municipalities and Housing launched a new package of model indicative contracts through “Balady” platform, with the aim of facilitating contracting procedures and clarifying the rights and obligations of all parties.

This will contribute to reducing legal disputes and maintaining good relations between stakeholders, ensuring that projects are implemented without disruptions as agreed upon under the contracts, the Saudi Press Agency (SPA) reported.

The new package—which includes 26 indicative plans—comes within the model contracts initiative announced by the ministry through the websites of the Saudi Council of Engineers and Saudi Contractors Authority.

The initiative is part of the ministry’s efforts to elevate the quality of projects and municipal and housing services provided to beneficiaries as well as automating those services in accordance with objectives of the Vision 2030.

The initiative included a benchmark comparison of the most internationally recognized contracts, which have been in use for nearly 100 years for contracting, including amendments and updates according to the changing needs of the market.

The contracts were studied and the best practices and standards were identified leading to unifying, modeling and launching indicative contracts for municipal services provided on “Balady” platform in accordance with international contract models (FIDIC Contracts).