On July 13, Knowledge Economic City signed a framework agreement with Oudeh Mubarak Al-Baladi and His Sons for Contracting (ABASCO) to carry out excavation and earthworks for a number of the company's development projects for SR 78.3 million, excluding value-added tax.

The company said in a statement on "Saudi Tadawul" on Tuesday that the agreement includes carrying out excavation and earthworks at the company's project sites to be developed during the agreement period, including general and rock excavation, backfilling and compaction, disposal of surplus materials, and temporary support and protection works, according to the scope of work and technical specifications issued for the project, as per the approved designs and specifications agreed upon between the two parties and the requirements of relevant authorities during the contract period.

It pointed out that the contract period is 3 years, and the contractor's dues will be paid in installments through monthly progress payments based on the work performed under the contract and according to the unit prices fixed for cubic meters. Thus, the period during which the financial impact, represented by the cash outflows for paying the contractor's dues for each project, will be spread over the duration of the agreement.

It stated that the framework agreement is a strategic tool to accelerate the implementation of future projects by fixing excavation prices for three years and leveraging economies of scale instead of tendering separate projects, thereby achieving financial savings, improving procurement efficiency, and speeding up the preparation of project sites, on the one hand, and enhancing the contractor's readiness to start execution immediately, on the other.

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