Super contractors to bid for future road projects

Dubai Municipality plans to bundle future road jobs together into ‘super-contracts’, in a bid to end the capacity crisis in the industry.

  • E-Mail
By  Sean Cronin Published  October 29, 2005

Dubai Municipality plans to bundle future road jobs together into ‘super-contracts’, in a bid to end the capacity crisis in the industry. The move will have a dramatic impact on local road contractors and could increase competition in the booming sector. The organisation is reviewing a plan to group smaller contracts together into major term packages, which it hopes will appeal to firms that are currently cherry-picking only carefully-selected contracts. Last week Construction Week revealed how public sector contracts are going begging in both Qatar and Dubai — where some Municipality tender calls are failing to attract a single response. The new plan under study at the Municipality is part of a raft of proposals aimed at ensuring that there is enough contracting capacity in the market to absorb the significant increase in public sector construction awards, particularly in the roads sector. Dubai Municipality engineering section currently processes between 500 and 600 tenders every year, and plans to spend almost US $1 billion on new roads in the coming year. By batching many smaller jobs together it hopes to slash paperwork and speed up desperately needed road and other infrastructure improvements across the emirate. The same approach is also being considered for other similar construction packages let by the organisation. Ibrahim Yaqob Ali, director of the contracts and purchasing department at Dubai Municipality, said: “We are looking at grouping contracts together under partnerships so that every single time we do not have to go through the process of going to tender, extending, evaluating and submitting. “For example, for roads in residential areas, the idea might be to tender one big project on re-measured rates.” Dubai Municipality is also considering liberalising pre-qualification rules to allow more firms to tender for contracts in the future. “We are encouraging international contractors to participate in our contracts and we are also considering easing the rules for companies working in the free zones,” added Yaqob Ali. The Municipality has fast-tracked road projects currently at pre-tender stage in a bid to tackle mounting traffic congestion in the city. Several major improvements are planned in the coming months, including improvements to interchanges one, six and seven on Sheikh Zayed Road, the double-decking of part of Doha Street and the widening of Al Ittihad and Al Awir roads.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code