Contractors Authority Chairman: Price Drops Without Accurate Pricing Risk Default and Poor Quality

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Chairman of the Saudi Contractors Authority Mohammed Al-Ajlan said that price declines without accurate pricing threaten contractors with default and poor execution quality. Al-Ajlan added, in an interview with Al-Ekhbariya channel commenting on the authority's annual report, that the banking sector has shown over the past years an ability to keep pace with development targets and project financing, but the next stage requires developing financing and financial products that suit the nature and needs of the contracting sector, along with providing specialized banking products and better governance of risks and cash flows. He pointed out that modern construction supports sustainability and carbon neutrality goals, as well as improving project implementation efficiency, indicating that the future direction is to move a larger part of construction work from project sites to factories. He added that the future projects offered in the Kingdom exceed 3 trillion riyals in value, noting that the rapid growth in the number of contracting sector establishments reflects an unprecedented phase of maturity and expansion witnessed by the sector as one of the main drivers of economic development, and contributes to achieving the goals of Vision 2030 through the implementation of major projects and development projects. Regarding the impact of geopolitical tensions, Al-Ajlan stated that the contracting sector, like other sectors, is affected by geopolitical tensions positively and negatively, but projects in the Kingdom are currently being implemented normally, confirming the availability of imported materials in good quantities and the continued flow of goods from external markets. He added that the sector receives great support from the industrial sector, with an abundance of local production of iron, cement, and construction materials, as well as surpluses in some products, and local factories provide iron, cement, and ceramics to support supply chains.

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