Late payment to contractors stalling KSA projects | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.:
"Late payment to contractors from different government agencies in Saudi Arabia amount to more than SR100 billion, representing about 30 percent of the total volume of government projects in the Kingdom, according to Nabil Abbas, representative of the International Federation of Consulting Engineers (FIDIC) in Saudi Arabia and the Arabian Gulf.
Abbas said the delay in payments to contractors is one of the main reasons for the faltering of government projects in the Kingdom. These delays account for about 20 percent of the total stalled projects.
The system in Saudi Arabia requires contractors to implement projects as long as the contract has been signed, even if the payments are delayed. These delayed payments from government agencies, Abbas said, are not a justification for the contractor to stop, although international law obliges authorities to pay contractors within 30 days of maturity. However, in Saudi Arabia, delayed payments to contractors extend for periods ranging from three to six months, and up to a year in many cases."
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