Saudi Arabia's Knowledge Economic City (KEC) has awarded a SAR78.3 million ($20.9 million) framework contract to Audhah Mubarak Al Biladi & His Sons Contracting Company (ABASCO) for excavation and earthworks across a number of future development projects, according to a filing on the Saudi Stock Exchange.

The three-year agreement covers a broad range of site preparation works, including bulk excavation, rock excavation, trench excavation, backfilling and compaction, disposal of surplus materials, dewatering, and temporary shoring and protection works.

KEC said the specific scope, quantities, technical specifications and site requirements for each project will be determined separately under individual work packages during the contract period, in accordance with regulatory requirements and approved design standards.

The company said contractor payments will be made in instalments based on monthly progress statements for work completed on each project, with cash outflows spread over the three-year duration of the agreement.

KEC described the framework agreement as a strategic initiative that will help accelerate the execution of its future projects by locking in fixed unit rates for excavation works, eliminating the need to tender each project separately.

The company said the arrangement is expected to generate economies of scale, reduce procurement costs, improve efficiency, enable faster site mobilisation and enhance the contractor's readiness to begin work, supporting timely project delivery.

KEC added that there are no related parties involved in the contract. -TradeArabia News Service