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Mohammed Al-Abdullah (Dammam) Reply to @ david_mc
The Saudi organization for entrepreneurs said that meetings with the Ministry of Finance had been organized to put in place a fair mechanism for paying compensation to construction companies in the coming period.
The chairman of the Saudi Entrepreneurs 'Authority, Osama Al-Afaliq, hoped that the Ministry of Finance would soon announce the receipt of contracting firms' transactions regarding the payment of royalties, while an independent electronic platform would be allocated to receive compensation requests from these companies, through which they could fill in the data needed to obtain payment.
He urged Okaz on the need to put in place an appropriate mechanism to obtain the minimum compensation for the enterprises affected by the financial compensation, stressing that the cost to the contracting companies was very high due to the decision of financial compensation, which has had a negative impact on their financial obligations, whether by increasing the cost of raw materials or increasing wages.
He pointed out that the appropriate compensation mechanism should take into account a number of direct and indirect effects such as the employment of the enterprise and government projects, as well as vis-à-vis high prices of raw materials, and increase the costs of subcontractors involved in these projects, pointing out that the mechanism of payment of offsets The advance payment is very problematic both in terms of cash flow and unsecured repayment in case of final departure.
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