Kuwait National Petroleum Co (KNPC) is currently working on implementing a strategy for reviewing the terms and conditions of new contracts, according to a local media report.
The company will consider not awarding the same scope of work to the same contractor for different areas in the future to avoid any potential failure to implement the assigned work.
This strategy will include clauses specifying fines to impose on the contractor in case of such a situation. KNPC has affirmed its commitment to imposing all fines on contractors in the event of any violation, within the framework of the laws that preserve the company’s rights, provided that this is done in accordance with the terms and conditions of the contract and is based on the regulations of the financial authorities.
The company will continuously audit and follow-up with all its contractors to ensure compliance with the security requirements and safety standards in all their work contracted with the company.
Additionally, the company is willing to start procedures for renewing ongoing contracts well before the end of their validity period to avoid extending contracts at high costs. KNPC is also working on coordinating with external parties when needed and conducting a future study regarding fines for service contracts and maintenance of the local marketing department, in addition to investigating accuracy in determining all contract requirements for employment or others before issuing tenders and awarding contracts.
