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DED launches the new regulations for contractors and engineering consulting offices

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DED launches the new regulations for contractors and engineering consulting offices

Wednesday, October 13, 2010
The Department of Economic Development in Abu Dhabi have launched the new regulations for contractors and engineering consulting offices classification being the only competent authority in the emirate authorized to classify contractors and engineering consulting offices. The new classification regulations were developed to cope with the booming of the construction business which is considered as one of the main pillars of the emirate’s economy.“The new classification regulations and instruction for contractor’s, engineering consulting offices and engineer’s registry is considered as an integrated and distinct criterion serving the emirate’s economy in particular and the UAE’s economy in a broader context. 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 the undersecretary of the department his Excellency Mohamed Omar Abdullah. Moreover, his Excellency added 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, to ensure that the department helps in achieving the Abu Dhabi 2030 vision which will promote the emirate to be among the top five governments worldwide. In addition, the undersecretary of the department said that there are currently more than 2500 contracting companies classified in the department’s registers and around 4500 non classified contracting companies in the emirate till date. These companies were influencing the outcome of last year’s real estate’s growth.The acting director of contractors and consulting offices classification, Mr. Khaled Al Hossani, have also mentioned that the new classification regulations will come into effect at the end of October 2010, after being published in the official gazette of the emirate of Abu Dhabi. Mr. Al Hossani also added that the department’s stakeholders were directly involved with the new regulations through seminars and workshops conducted by the department during the last year. He also highlighted that the new classification regulations have made useful use from the successful experiences of neighboring countries and from other countries around the world, to develop these regulations in order to reach the best practices to meet the strategic goals of the department developing a sustainable economy in the emirate.It is also worth a while mentioning that the new systems allows all companies, involved in the construction industry in the emirate, to classify according to a well designed categories matching technical, financial and previous project execution experience abilities according to a well administered criterion.According to the Regulation No. (1) of the year 2009 concerning the classification of consulting offices in the emirate, the consulting office is classified based on his technical, financial and previous project design abilities. The regulation will also allow individuals to own more than one consulting office, a contracting company, and it will allow local investors whom are non engineers by profession to own an engineering consulting office based on certain requirements. Moreover, the regulation will also allow engineering experts to establish an engineering peer review office which will be giving advisory opinions in a specific engineering discipline to an engineering consulting office, or any interested party.As for Regulation No. (2) of the year 2009 concerning contractors classification, has taken into consideration the development of the construction industry since 1980 when the old classification regulations was issued by the government of Abu Dhabi. The new regulations had focused on establishing thresholds for projects in which the contractor can participate in, and allowed the contractor to sum up his previous executed projects. Ultimately, after the launching date of the new regulations, the classification of contractors will be mandatory for practicing the activities listed in the department’s commercial license and the regulations will also classify design-build contractors in the emirate.According to Regulation No. (3) for the year 2009 concerning engineer’s registration in the emirate, will examine practicing engineer’s working within the jurisdiction of the emirate according to their qualifications. Upon implementation, all contracting companies and engineering consulting offices must employ a certain number of engineers, registered at the department’s Engineer’s Registry, to be able to obtain the classification. The Engineer’s Registry at the department of economic development is anticipated to start functioning in the first half of the year 2011.
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