Saudi Arabia’s Knowledge Economic City (KEC) has awarded a US $20.9mn framework contract to Audhah Mubarak Al Biladi & His Sons Contracting Company (ABASCO) for excavation and earthworks across several future development projects. This information was filed on the Saudi Stock Exchange.

The 3-year agreement covers a broad spectrum of site preparation tasks, including bulk excavation, rock excavation, trench excavation, back-filling and compaction, disposal of surplus materials, dewatering, and temporary shoring and protection measures.

KEC stated that the specific scope, quantities, technical specifications, and site requirements for each project will be determined individually under separate work packages during the contract period. These determinations will be made in accordance with regulatory requirements and approved design standards.

The company explained that contractor payments will be made in installments based on monthly progress statements for completed work on each project. This approach will ensure that cash outflows are spread over the 3-year duration of the agreement. KEC clarified that there are no related parties involved in the contract.

KEC described the framework agreement as a strategic initiative aimed at accelerating the execution of its future projects. By locking in fixed unit rates for excavation works, the company eliminates the need to tender each project separately.

The company anticipates that this arrangement will lead to economies of scale, reduced procurement costs, improved efficiency, faster site mobilisation, and enhanced contractor readiness to commence work. These factors collectively support timely project delivery.