Abu Dhabi : Abu Dhabi's Department of Economic Development (DED) yesterday announced new classification regulations and instructions for contractors and engineering consulting offices in a move aimed at further boosting the construction business in the nation's capital.

"We have modified the contractor classification regulation of 1980. The new classification regulations will enable contractors for buildings, roads, sewage and engineering consultancy offices to participate in government and non-governmental tenders," Yousuf Jamil Barzak, Contractors Classification Specialist at DED, told Gulf News.

He said the new regulations will be implemented from the date of publication in the official gazette.

Asset requirements

Barzak said the asset requirements for contractors to bid for tenders have been increased.

"It has increased the value of contracts that the contractor can participate in," he said, adding that the new classification will bring about greater transparency and would reveaal the financial capability of contractor/consultant.

The contractors' classification has seven categories: Special, First, Second, Third, Fourth, Fifth and Sixth. For engineering consultants, the categories are: Special, First and Second.

To be eligible for the Special category, the contractor must have Dh30 million in assets. The total value of the previously executed projects must not be less than Dh480 million, out of which at Dh360 million executed as a main contractor. The estimated value of the project the contractor may participate in is more than Dh100 million. For the sixth category, the asset requirement of the contractor is a minimum Dh300,000 and the estimated value of the project the contractor may participate in Dh7 million, or less.

To qualify under the Special Category of "Design and Build Project" contactors, the contactor must have at least Dh40 million in assets. The estimated value of the project this contractor may participate in is more than Dh100 million.

With regard to engineering consultancy office, to qualify under the Special Category a national investor needs to have Dh4 million in assets. The estimated value of the project the office may participate in is more than Dh70 million. The total value of the previous executed projects must be Dh480 million provided that the value of one projects is not less than Dh60 million.

For an engineering consultancy office owned by a national engineer/foreign company branch, the eligibility under the Special Category is Dh3 million in assets.

The estimated value of the project the office may participate in is more than Dh70 million.

"The regulations were structured by a team of professional experts and have initiated, planned and managed the implementation of these regulations which suits the continuous growth of these vital part of the economy" said DED Undersecretary Mohammad Omar Abdullah.

He said that the department was keen to facilitate the new classification regulations after numerous consultations with the department's stakeholders, both from governmental and non- governmental entities.