Professionals’ Impressions Regarding the Saudi Arabian Procurement and Contracts System

14 May Professionals’ Impressions Regarding the Saudi Arabian Procurement and Contracts System

By Ahmed Alofi, Jacob Kashiwagi, Dean Kashiwagi

March 2017

Abstract
Saudi Arabia (SA) has the largest construction market in the Middle East. However, the use of the traditional procurement system in SA has been identified as one of the causes for poor performance in the delivery of construction. The system has been identified as a major risk to the SA government due to consistent increased costs and delays of up to 70% on projects. A survey was conducted with 1396 participants including engineers, buyers, contractors, consultants, academics, and architects. The purpose of the survey was to identify the validity of the recent claims that the procurement system in SA is broken. The participants work in both the private and government sectors. The survey results showed that the procurement system is a major risk to projects, affects construction projects negatively, and is in need of improvement. Key Words Saudi Arabia, Construction, Performance, Risk, Procurement.