Al-Mutawa calls for enhanced protections for subcontractors in Kuwaiti government projects

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KUWAIT CITY, June 23: Tariq Al-Mutawa, Chairman of the Board of Directors of Sudair Trading and Contracting Company, emphasized the critical need for the Central Agency for Public Tenders to establish a robust mechanism to resolve issues and ensure the rights of subcontracting companies involved in government projects, reports Al-Jarida daily. Al-Mutawa has highlighted several pressing concerns faced by approved subcontractors in Kuwait. Firstly, he pointed out that subcontractors approved by regulatory authorities often encounter delays in receiving payments owed to them after completing subcontracts for projects awarded to large, often non-local companies through government tenders.

These delays, according to Al-Mutawa, have significant negative impacts on the market dynamics and operational capabilities of subcontracting firms, potentially jeopardizing their financial stability and ability to undertake future projects. Al-Mutawa underscored that some entities responsible for project oversight withhold payment to subcontractors due to observations or disputes with the primary contractors. He emphasized that if there are issues or observations, they should be promptly addressed by identifying the responsible party and ensuring that subcontractors receive their due payments for work completed satisfactorily.

Moreover, Al-Mutawa expressed concern over the prolonged duration subcontractors wait to receive their payments, which in some cases exceeds five years after project completion. He estimated that the outstanding dues to subcontractors collectively amount to at least 100 million dinars. These delayed payments not only hinder the subcontractors’ financial liquidity but also affect their ability to fulfill obligations to banks and other financial commitments, potentially leading to financial crises and bankruptcy threats.

Al-Mutawa stressed the urgent need for regulations and mechanisms to safeguard subcontractors’ rights, asserting that they play a crucial role in project execution, contribute positively to the economy by employing local workers, and deserve protection and support through legislative and regulatory frameworks. He called for the issuance of new laws and decisions to organize and strengthen the subcontracting sector, ensuring its sustainability and continued contribution to the local market. Al-Mutawa urged for the development of a comprehensive roadmap to ensure timely and fair payment of subcontractors’ financial dues, emphasizing the importance of organizing and supporting this vital sector for the benefit of Kuwait’s economic development and stability.

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