Contractor Prequalification in Saudi Arabia

Abstract

The process of investigating and qualifying contractors is important to ensure the success of construction projects. Prequalification has been established as a standard practice by public and semipublic organizations. Its objective is to ensure that the contractor's characteristics and capabilities match the requirements of the project under consideration. Effective and objective qualification processes serve both owners and contractors. Construction is a worldwide industry. The extension of the General Agreement on Tariffs and Trade (GATT) agreement in the construction industry in the near future will make it possible for contractors to bid in different parts of the world. This paper identifies criteria that are considered in prequalification practices for semipublic and private projects in Saudi Arabia. Prequalification practices of 19 large companies were studied. In addition, questionnaires were sent to 202 randomly selected companies. The results indicated that common criteria for evaluation include: contractor's experience, financial stability, past performance, quality performance, project management capabilities, contractor failure records, management staff availability, and contractor capacity. Results were compared with results obtained in the United States. Prequalification criteria are similar in both countries.