New framework for Omani projects yields savings
These savings are expected to burgeon in the coming years once the new framework is meticulously applied in the tendering and award of government contracts estimated to total in excess of RO 1 billion in 2024 alone.
Published: 02:11 PM,Nov 25,2024 | EDITED : 06:11 PM,Nov 25,2024
Change orders – long blamed for cost overruns – declined 24% in 2023 following the adoption of the new governance framework for government contracts.
MUSCAT: Oman’s authorities have recorded tens of millions of Omani riyals in cost savings following the roll-out of a new framework for the governance of government projects contracted out for implementation via the Government Tender Board.
These savings, generated over the course of 2023, are expected to burgeon in the coming years once the new framework is meticulously applied in the tendering and award of government contracts estimated to total in excess of RO 1 billion in 2024 alone.
Development spending by the government has been on the uptrend in recent years, with around RO 505.3 million worth of government projects awarded via the Tender Board in 2022, up from RO 252.5 million a year earlier. In the first quarter of 2024 alone, government contracts with a lumpsum value of around RO 584 million were floated via the Tender Board’s Esnad electronic tendering system.
Effective from 2023, new governance procedures have gone into effect to help enhance transparency, better allocation of resources, and reduction of waste to ensure the implementation of government projects in the “most effective and economical manner”, according to the Oman Vision 2040 Implementation Follow-up Unit.
Following a series of engagements with stakeholders, including government and private sector organisations, consultants and engineering firms, and related entities, a new ‘Documentary Cycle’ was formulated to help tackle bureaucratic delays attendant in the tendering process.
At the same time, the Tender Board issued a new regulation via Decision 2023/169 to strengthen governance in the management of government projects. “The regulation aims to create an effective framework that enhances the efficiency of government projects, ensures rapid implementation, reduces change orders, and adheres to approved budgets. The regulation addresses all aspects related to the tendering of government projects through 7 stages, starting from the ‘initiation’ stage and ending with the ‘closure’ stage,” the Vision 2040 Office, which oversaw the delivery of the initiative, noted.
In the wake of the adoption of the new governance code, change orders – long blamed for cost overruns – declined 24 per cent in 2023 alone, while the procurement cycle was slashed by an average of 40 – 50 per cent. Financial savings totaling several tens of Omani riyals also accrued to the government as a result of these efficiencies, it added.
These savings, generated over the course of 2023, are expected to burgeon in the coming years once the new framework is meticulously applied in the tendering and award of government contracts estimated to total in excess of RO 1 billion in 2024 alone.
Development spending by the government has been on the uptrend in recent years, with around RO 505.3 million worth of government projects awarded via the Tender Board in 2022, up from RO 252.5 million a year earlier. In the first quarter of 2024 alone, government contracts with a lumpsum value of around RO 584 million were floated via the Tender Board’s Esnad electronic tendering system.
Effective from 2023, new governance procedures have gone into effect to help enhance transparency, better allocation of resources, and reduction of waste to ensure the implementation of government projects in the “most effective and economical manner”, according to the Oman Vision 2040 Implementation Follow-up Unit.
Following a series of engagements with stakeholders, including government and private sector organisations, consultants and engineering firms, and related entities, a new ‘Documentary Cycle’ was formulated to help tackle bureaucratic delays attendant in the tendering process.
At the same time, the Tender Board issued a new regulation via Decision 2023/169 to strengthen governance in the management of government projects. “The regulation aims to create an effective framework that enhances the efficiency of government projects, ensures rapid implementation, reduces change orders, and adheres to approved budgets. The regulation addresses all aspects related to the tendering of government projects through 7 stages, starting from the ‘initiation’ stage and ending with the ‘closure’ stage,” the Vision 2040 Office, which oversaw the delivery of the initiative, noted.
In the wake of the adoption of the new governance code, change orders – long blamed for cost overruns – declined 24 per cent in 2023 alone, while the procurement cycle was slashed by an average of 40 – 50 per cent. Financial savings totaling several tens of Omani riyals also accrued to the government as a result of these efficiencies, it added.