Global Journal of Management and Business Research, G: Interdisciplinary, Volume 23 Issue 1

Contract Administration and its Future in Saudi Arabia Mohammed A. Al-Zubidi Author: Saudi Arabian Oil Company Procurement & Supply Chain Management Materials Services Department Dhahran, Saudi Arabia. Abstract- In recent years, Saudi Arabia has experienced rapid economic growth and infrastructure development, leading to an increased demand for efficient and effective contract administration. This paper investigates the current state of contract administration in Saudi Arabia and explores its future prospects in light of emerging technologies, legal frameworks, and industry best practices. Through a comprehensive review of relevant literature, interviews with industry professionals, and analysis of case studies, we identify key challenges and opportunities in the realm of contract administration, such as the need for standardized processes, improved dispute resolution mechanisms, and enhanced collaboration among stakeholders. The paper also highlights the potential benefits of adopting digital technologies, such as Building Information Modeling (BIM), blockchain, and artificial intelligence (AI), to streamline contract administration processes, reduce human errors, and increase overall efficiency. Finally, we discuss the implications of these findings for stakeholders involved in the Saudi Arabian construction industry and provide recommendations for future research and policy development in the field of contract administration. Keywords: contract administration, saudi arabia, BIM, blockchain, GTPL, challenges, digital technologies, standardization. I. I ntroduction construction industry. The paper is organized as follows: Section 2 provides a background on the current state of contract administration in Saudi Arabia, including an overview of the construction industry and the regulatory environment. Section 3 discusses the key challenges faced in contract administration, such as standardization, dispute resolution, and stakeholder collaboration. Section 4 highlights the potential benefits of adopting digital technologies, including Building Information Modeling (BIM), blockchain, and artificial intelligence (AI), in streamlining contract administration processes. Section 5 examines the implications of these findings for stakeholders involved in the Saudi Arabian construction industry and offers recommendations for future research and policy development. Finally, Section 6 concludes the paper by summarizing the key findings and their significance for the future of contract administration in Saudi Arabia. II. T he C urrent S tate of C ontract A dministration in S audi A rabia The construction industry in Saudi Arabia has experienced significant growth over the past few decades, driven by large-scale infrastructure projects and government initiatives such as Vision 2030. This growth has placed a spotlight on the importance of efficient contract administration practices in managing complex construction projects involving multiple stakeholders. Currently, contract administration in Saudi Arabia is governed by various regulatory frameworks, including the Government Tenders and Procurement Law (GTPL), which sets the rules and procedures for public-sector contracts. In the private sector, contracts are typically based on internationally recognized standard forms, such as FIDIC or bespoke agreements. While these legal frameworks provide a foundation for contract administration, inconsistencies and gaps in their application have led to challenges in the industry. III. K ey C hallenges in C ontract A dminstration Several challenges in contract administration have been identified in the Saudi Arabian construction industry: 1 . Standardization: The lack of standardized contract forms and procedures has led to inconsistencies in contract administration practices, making it difficult 25 Global Journal of Management and Business Research Volume XXIII Issue I Version I Year 2023 ( )G © 2023 Global Journals ontract administration plays a critical role in the successful delivery of construction projects by ensuring that the terms and conditions outlined in a contract are adhered to by all parties involved. As the construction industry in Saudi Arabia continues to expand, driven by initiatives such as Vision 2030 and the National Transformation Program, there is an increasing need for efficient and effective contract administration practices. Moreover, the growing complexity of construction projects, coupled with the involvement of multiple stakeholders, calls for innovative solutions and strategies to address the challenges faced in contract administration. The objective of this paper is to examine the future of contract administration in Saudi Arabia by exploring emerging technologies, legal frameworks, and industry best practices that can enhance the overall efficiency and effectiveness of contract administration processes. In doing so, this paper aims to provide valuable insights and recommendations that can contribute to the development of improved contract administration practices within the Saudi Arabian C e-mail: khaled.aljezan@aramco.com