Saudi-based Asas Makeen Real Estate Development and Investment Company has signed up Itihad Al Thabat Contracting to execute and complete the construction and finishing works required for a number of residential and commercial projects being developed by the company in Riyadh.

These projects span a total area of 65,000 sq m and it will be executed on a cost-plus-fee basis, said Asas Makeen in its filing to Saudi bourse Tadawul.

The total value of these projects are estimated at SAR315 million ($83 million), said the Saudi developer, adding that each project will be executed within a 18-month period. 

The scope of work for Itihad Al Thabat Contracting includes the contracting, construction, and finishing works for these projects on a turnkey basis. 

The budget, scope of work, specifications, and schedule for each project will be separately determined and approved before work begins, stated Asas Makeen in the bourse filing.

The financial impact of the agreement is set to be reflected gradually in its financial statements over the project execution periods, based on progress of work, actual costs, and monthly payment certificates for each project, it added.-TradeArabia News Service