Oman has introduced stricter contractual measures to tackle delays in government projects, strengthen accountability and improve the efficiency of public spending. Under the revised government contracts, contractors must submit a recovery plan when project delays reach 5%, while delays reaching 15% may trigger a review of their eligibility to participate in future government projects.
The updated framework also removes the previous 5% retention requirement from the actual contract value, helping improve contractorsโ cash flow and support project execution. In addition, the revised contracts clarify responsibilities, aim to reduce disputes and unnecessary variation orders, and reinforce local content and Omanisation requirements, including the employment and training of Omani nationals and greater use of local suppliers.
For Omanโs construction and infrastructure sector, these changes highlight the growing importance of disciplined project management, realistic scheduling, transparent contract administration and proactive risk control. Contractors and project owners should review their project monitoring systems and contractual processes to ensure they are prepared to meet the revised requirements.
