KEC said the financial impact will be recognized over the duration of the agreement.
Knowledge Economic City Co. (KEC) signed a framework agreement with Awdah Mubarak Al-Biladi Sons Contracting Co. (ABASCO) to carry out excavation and earthworks for the company’s future development projects, at a value of SAR 78.3 million (excluding VAT). 
In a statement to Tadawul, the company said the three-year agreement covers bulk, rock, and trench excavations, backfilling and compaction, disposal of surplus materials, dewatering, and temporary shoring and protection works. These works will be executed according to approved designs, specifications, and the requirements of the relevant authorities.
The company added that the contractor dues will be paid in installments based on monthly progress certificates reflecting the work completion rates and according to fixed unit prices on a per-cubic-meter basis. Accordingly, the financial impact, represented by cash outflows to settle the contractor’s dues for each project, will be recognized over the duration of the agreement.
KEC also indicated that the agreement aims to accelerate the execution of future projects by locking in excavation prices for three years and benefiting from economies of scale, rather than issuing separate tenders for each project. The arrangement is expected to generate cost savings, enhance procurement efficiency, expedite project site preparation, and improve the contractor’s readiness to commence execution immediately.
KEC said the financial impact will be recognized over the duration of the agreement.
Knowledge Economic City Co. (KEC) signed a framework agreement with Awdah Mubarak Al-Biladi Sons Contracting Co. (ABASCO) to carry out excavation and earthworks for the company’s future development projects, at a value of SAR 78.3 million (excluding VAT).
In a statement to Tadawul, the company said the three-year agreement covers bulk, rock, and trench excavations, backfilling and compaction, disposal of surplus materials, dewatering, and temporary shoring and protection works. These works will be executed according to approved designs, specifications, and the requirements of the relevant authorities.
The company added that the contractor dues will be paid in installments based on monthly progress certificates reflecting the work completion rates and according to fixed unit prices on a per-cubic-meter basis. Accordingly, the financial impact, represented by cash outflows to settle the contractor’s dues for each project, will be recognized over the duration of the agreement.
KEC also indicated that the agreement aims to accelerate the execution of future projects by locking in excavation prices for three years and benefiting from economies of scale, rather than issuing separate tenders for each project. The arrangement is expected to generate cost savings, enhance procurement efficiency, expedite project site preparation, and improve the contractor’s readiness to commence execution immediately.
