Advise is sought to finalize a claim made by the contractor for providing a third party security company.
Project requires work to be done on a piece of land newly acquired by KASUT and currently secured by a mere chainlink fence with a locked gate.
KAUST and National Guards “not manning this locked gate currentlyâ€ have established that to open the lock a third party security company has to be deputized for the work period.

The extract from SCH-B is copied below;

1.0	SECURITY

1.1	Construction Security

  SAUDI ARAMCO will provide an overall framework and coordination for the security requirements of CONTRACTOR and will review and approve all CONTRACTOR planned security organization and execution procedures. Regular coordination meetings will be held to discuss ongoing activities. SAUDI ARAMCO review or approval of such procedures shall not relieve CONTRACTOR of its obligations to provide adequate security at WORK Site.

CONTRACTOR will be responsible for all its own arrangements for the security of its resources and activities, and will propose its organization and procedures, which shall include reference to the following: -

a)	Personnel security
b)	Materials of construction, from port lay down to erection including transport of oversize equipment.
c)	Personnel transport.
d)	Temporary facilities.
e)	Equipment provided by SAUDI ARAMCO.
f)	Access to the Site.

5.2     Site Security

CONTRACTOR shall comply with all SAUDI ARAMCO and KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY security arrangements at the Site. In addition, CONTRACTOR must, on the grounds of safety and security, secure and delineate its WORK areas and laydown areas with temporary fencing. CONTRACTOR shall be totally responsible for the activities of all personnel who have entered and accessed the construction WORK Site and CONTRACTOR’s allocated areas.

5.3	Security Facilities and Resources

  CONTRACTOR, in order to support its security strategy, shall install and maintain adequate security facilities throughout the entire project cycle to support construction execution and assist the movement of construction personnel and the delivery and handling of materials. These facilities shall include adequate temporary fencing, security management and personnel.  Direction signs and notices, including speed control and heavy load escorting, shall also be provided.   

5.4     Personnel and Equipment Control

  There could be several Other Contractors using the Site and the project road network. CONTRACTOR must plan and coordinate movements of plant, equipment and personnel with Other Contractors, to ensure both safety and security issues are properly identified and addressed in order to maximize construction efficiency. CONTRACTOR shall arrange movements of its construction workforces and the transport of heavy plant and equipment such that road/route congestion is minimized with particular emphasis on the start and end of work shift movements. CONTRACTOR shall also establish requirements and standards in regard to personnel movement, access and social behavior control, which will be subject to SAUDI ARAMCO approval.

5.5     Material and Heavy Equipment

  CONTRACTOR shall be responsible for the security of all materials and heavy equipment from point of landing at the port to final erection at the construction WORK Site. CONTRACTOR shall ensure, during actual transport from the port to the WORK Site that all the necessary Government Departments are notified and all on-route personnel and fixtures are secure and protected during the movement and handling of such materials.


The project requires the contractor to have a planned security organization but does not ask for a third party for maintaining the security. E.g. Contractor has planned organizations for quality and safety and construction and procurement etc.
The contract requires the contractor to comply with all SAUDI ARAMCO and KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY security arrangements at the Site. Meaning arrangements should have existed on the said location for the contractor to comply with. There is no mention of KAUST requirements. There is no standard that the contractor would have foreseeably used to price the desired third party security requirements while bidding for this contract.

The project has explicitly mentioned where a third party will be required in the project. In various sections of the contract, third parties are required for auditing, inspections, manufactured materials, arbitrations, calibrations, etc etc.

From the above it seems that that hiring a third party and meeting National Guard requirements (which are frankly excessive) is not a part of the contract. Also it is well known that hiring a third party is much more expensive than deploying security/ surveillance via own forces which are already mobilized on site for contractor camps, offices, yards, precast plants etc. The National Guard has asked for the following requirements to secure an area - an area which is not a part of KAUST security infrastructure yet. While rest of KAUST has IDAS surveillance systems and patrol roads etc, this newly acquired area is still to be developed and not included in the security “arrangementsâ€ of KAUST.  Our project has to develop these security arrangements and that’s why access is being sought by the contractor. The national guard requirements are…

1.	Portal cabin office with HVAC
2.	Portal cabin canteen/ rest area 12m x 4m
3.	Mosque with HVAC
4.	Washrooms
5.	A 4x4 patrol car
6.	4 security guards (The site work will be done from 7am-5pm for 6 days per week for 3-6 months)
7.	Security Supervisor

While all negotiations with KAUST and National Guards to soften the security requirements for an undeveloped land have failed, PMT proposes that the costs of the third party be allowed as a positive change and costs of own forces (if had been allowed) be subtracted to develop the variation from the contract.
