Al Khodari wins $108.5m Qatif hospital deal
New project win brings to value of contracts landed this week to $230m
Abdullah AM Al Khodari, the contracting company from Al Khobar in Saudi Arabia's Eastern Province, has won a contract worth $108.5m to build a new 300-bed maternity hospital in the city of Qatif.
The company, which carries out around 95% of its contracts for government clients, said the project will take two years to complete from the date of the site handover.
The project has been split into two separate phases, with the first being valued at $65.4m and the second at $43.1m.
Al Khodari said that further details on the financial impact of the contract will be announced once it is signed.
The win takes the value of contracts won by the company this week to over $230m, following the announcement of a pair of waste management awarded by Riyadh Municipality.
The company landed a five-year street cleaning deal for the Nassim and Suali districts worth $80m, and another five-year deal for the Shumaisi area worth $41.6m.
Al Khodari posted a 34.6% increase in contracting revenues for 2012 to $104.1m but saw profits drop by 14.1% to $36.1m, which it blamed on higher materials costs, subcontractors' rates and the rapidly-increasing costs of labour which contractors were having to incur to meet the requirements of the country's Saudisation programme.