Assessment and Develop the Saudi’s Contractors Classification System

Research has shown that construction projects in Saudi Arabia have had a perceived poor performance for the past three decades, from 1970-2016. The Saudi construction industry relies on a Contractor Classification System (CCS) to determine contractors’ capabilities, and prevent underperformance. Through this study, a survey was conducted among persons involved in the Saudi Arabian construction industry to identify the perception of the performance of the Saudi Arabian construction industry, and the satisfaction with the CCS. The results of the survey showed that 71.59% of the participants agreed that the CCS does not accurately assess contractors’ capabilities for projects they are allowed to work on. A critical review of the CCS is presented through a case study and comparisons are made from worldwide CCSs found in a literature review. All the parts of the Kingdom of Saudi Arabia’s CCS, including the work flow and the evaluation criteria were reviewed. Several observations of the CCS include a lack of transparency in the process, no performance feedback, complexity of the system, the system being outdated in relation to the worldwide systems, and no continuous performance measurements. To develop an appropriate continuous performance measurement model and benchmarking, other worldwide performance measurement models and benchmarking models were reviewed and discussed. Through these findings, a modified version of the current CCS was developed. A test was performed on the financial assessment portion of the developed model using 5,751 contractors who were classified at the time of this study. The results showed that only 14% of the 5,751 contractors are financially capable in their respective CCS grades. The proposed new CCS model which is outlined in this study includes two major modifications. The first modification is on existing components, which will improve the transparency, simplicity, and speed of the CCS process. The second modification is the addition of a new component, which will continually track contractor performance over time and motivate contractors to improve their performance.