Muscat:The Ministry of Finance, in cooperation with the Projects, Tenders and Local Content Authority, has announced the issuance and update of a package of new unified contracts. This package includes the issuance of the Design, Procurement and Construction Contract, as well as updates to the Construction Contract and the Engineering Consultancy Contract.
According to Oman News Agency, the update is part of a comprehensive plan to modernize the contractual framework, align it with local project requirements, and enhance the business environment's reliability. The initiative aims to improve the contracting system's efficiency, reduce risks and disputes, and ensure clarity in accountability procedures.
The updated contracts are designed to meet current project execution requirements with higher efficiency and clearer procedures. Following comprehensive reviews, these updates aim to address previous contractual challenges and align with best practices in project management. This approach is expected to accelerate project completion, improve execution quality, and enhance government spending efficiency.
The new contracts also emphasize local content, requiring contractors to meet local employment and supplier requirements. The updates include significant changes, such as the cancellation of the 5 percent retained amounts from contract values to improve financial liquidity for contractors. Additionally, new corrective measures address project delays, obligating contractors to submit recovery plans and reviewing their eligibility for future projects if delays exceed specific thresholds.
The contracts now incorporate a broader concept of force majeure and enhance the employer's powers regarding payment controls, ensuring a balanced risk distribution among contract parties. These updates aim to maintain commitment to project execution and quality while adapting to changing circumstances.