Seder Construction bids low for Saudi security compound contract

18 July 2011

Interior Ministry receives 11 bids for estimated $6bn contract

Saudi Arabia’s Interior Ministry has received 11 bids on 12 July for the project to build the third phase of its security compounds programme. The local Seder Construction Company submitted the low bid for the project, estimated to be about SR10bn ($2.7bn).

The bid was considerably lower than the previously estimated SR20bn value of the project.

Other companies that submitted bids include the local Saudi Binladin Group, local Saudi Oger, local El-Seif Engineering Contracting and the local Nesma & Partners Contracting Company.

Saudi construction awards 
DateTotal value ($bn)
Q1 20102.4
Q2 20104.6
Q3 20101.6
Q4 20105.8
Q1 20112.6
Q2 20113.8
Source: MEED projects

The project is the third contract to be tendered for the programme to build a network of security compounds throughout Saudi Arabia, which will cover the construction, operation and maintenance of 28 different types of facilities at more than 50 locations throughout the kingdom. The facilities will be used to house, educate and train members of Saudi Arabia’s public security, civil defence service, fire service, police force, passports division and special security and investigative forces.

The compounds have been designed to include schools, mosques, theatres, civilian dormitories, military barracks, administration buildings, training facilities and buildings for recreation and entertainment.

The majority of the security premises will be built in and around Riyadh, but facilities will also be built in the provinces of Qassim, Hail, Tabuk, Jeddah, Madinah, Taif, Al-Jouf and on Saudi Arabia’s Northern borders.

The first phase of the programme was awarded to Saudi Binladin and the second phase is expected to be awarded to Saudi Oger.

The project is one of several large construction projects that the Interior Ministry is currently tendering. The ministry has invited contractors to submit bids by 7 August for the project to build two medical complex projects worth a total of SR25bn in Riyadh and Jeddah.

The scope of the work will include construction and fit-out of the medical complexes, one will be located in Riyadh and one in Jeddah, which will each have a total built-up area of 1.3 million square metres.

The two medical cities will have the same design and will both include three hospitals and all related medical and residential facilities. The medical facilities will have a total built-up area of about 400,000 sq m (MEED 27:6:11).

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