Collaboration
Finance, Accounting, and Treasury Department Collaboration – A 360-Degree Approach
Seamless Financial Coordination for Mega Construction Projects
1. Introduction
The Finance, Accounting, and Treasury Departments at BEC Arabia work collaboratively with internal and external stakeholders to ensure financial stability, contract compliance, risk mitigation, and efficient capital management. Given the scale of multi-billion SAR construction projects, financial collaboration is crucial in:
Ensuring accurate cost control and financial reporting across departments
Optimizing cash flow management and maintaining liquidity for project execution
Aligning procurement, contract administration, and financial risk management
Ensuring compliance with Saudi financial regulations, tax laws, and global accounting standards
Managing financial risks, supplier payments, and investment planning to support corporate growth
A 360-degree collaborative framework ensures BEC Arabia’s financial operations are integrated with key business functions, driving cost efficiency, transparency, and financial sustainability.
2. Cross-Departmental Collaboration Model
Collaboration Area
Finance Department Responsibilities
Key Stakeholders
Project Budgeting & Cost Control
Aligning project budgets with financial forecasts and tracking cost performance
Project Managers, Commercial, Executive Leadership
Contract Financial Administration
Managing contract payments, financial claims, and supplier invoicing
Legal, Contracts Administration, Suppliers, Clients
Procurement & Supplier Payments
Ensuring cost-efficient procurement and timely supplier/subcontractor payments
Procurement, Supply Chain, Treasury
Financial Compliance & Audits
Ensuring tax compliance, VAT filings, and financial audits
External Auditors, Regulatory Bodies, Legal Team
Liquidity & Capital Management
Securing credit facilities and optimizing working capital
Treasury, Banks, CFO, Board of Directors
Benchmark: Finance, Accounting, and Treasury must ensure 100% compliance with financial reporting, contract finance, and budget control regulations.
3. Collaboration with Project Management & Commercial Departments
3.1 Budgeting, Cost Control, and Financial Planning
Works with Project Managers and Commercial Teams to ensure project costs align with financial forecasts.
Tracks budget deviations and cost performance to prevent cost overruns.
Ensures financial feasibility assessments for new projects.
Key Deliverables:
Project Budget and Forecast Reports
Cost Variance and Financial Performance Analysis
Quarterly Budget Reconciliation Reports
Benchmark: Project cost deviations should not exceed 5% of the allocated budget.
3.2 Contract Financial Administration & Payment Approvals
Ensures all contracts follow financial compliance regulations before approval.
Tracks progress payments, supplier invoices, and financial claims.
Works with Legal and Contracts Administration to resolve financial disputes and claims management.
Key Deliverables:
Contract Payment Certification Reports
Financial Risk Assessment Logs
Claim and Dispute Resolution Financial Documentation
Benchmark: 95% of financial claims should be resolved within contractual deadlines.
4. Collaboration with Procurement & Supply Chain Departments
4.1 Procurement Financial Planning & Supplier Payments
Works with Procurement to ensure cost-effective purchasing strategies.
Manages supplier payments, credit terms, and cash flow impact of procurement decisions.
Ensures all supplier transactions comply with Saudi VAT regulations and tax laws.
Key Deliverables:
Supplier Payment Processing Reports
Procurement Cost Optimization Reports
VAT Compliance and Financial Transaction Logs
Benchmark: 100% compliance with supplier payment terms and VAT regulations.
4.2 Financial Risk Management in Procurement & Subcontracting
Ensures procurement follows Etimad e-Procurement System requirements for government contracts.
Implements supplier prequalification and financial risk assessment.
Mitigates financial risks related to supplier performance, currency fluctuations, and contract variations.
Key Deliverables:
Supplier Financial Risk Assessment Reports
Procurement Cost Reduction Strategies
Procurement Compliance and Financial Audits
Benchmark: Procurement cost savings should achieve a minimum of 10% efficiency annually.
5. Collaboration with Treasury & Banking Partners
5.1 Liquidity & Capital Structuring for Mega Projects
Ensures BEC Arabia maintains adequate liquidity for project execution and corporate operations.
Works with banks to secure credit facilities, loans, and financial guarantees.
Manages capital structuring to optimize financial resource allocation.
Key Deliverables:
Liquidity & Cash Flow Management Reports
Banking Facility Utilization Logs
Capital Investment Performance Analysis
Benchmark: Maintain a liquidity ratio above 1.2:1 to ensure financial stability.
5.2 Banking Relations & Treasury Risk Mitigation
Works with banks to manage credit risks, forex hedging, and financial investments.
Ensures all banking transactions align with Saudi financial regulations and corporate governance policies.
Implements treasury risk management strategies for foreign exchange fluctuations and financial security.
Key Deliverables:
Banking & Credit Facility Management Reports
Foreign Exchange & Hedging Strategy Logs
Financial Investment & Risk Assessment Reports
Benchmark: 100% compliance with corporate treasury and banking regulations.
6. Collaboration with External Auditors, Tax Authorities, and Regulatory Bodies
6.1 Tax Compliance & Financial Audits
Ensures timely VAT filings, tax submissions, and corporate tax compliance.
Works with external auditors to ensure IFRS and SOCPA compliance.
Conducts internal financial audits to detect and prevent financial discrepancies.
Key Deliverables:
VAT Compliance & Tax Filing Reports
Financial Audit Compliance Logs
ZATCA Taxation Reports & E-Invoicing Records
Benchmark: Zero financial penalties due to non-compliance with tax and audit regulations.
6.2 Risk & Compliance Monitoring for Financial Governance
Ensures full compliance with Saudi financial laws, FIDIC contract finance terms, and regulatory frameworks.
Implements financial fraud detection measures and anti-money laundering (AML) compliance.
Works with legal and corporate governance teams to strengthen financial risk controls.
Key Deliverables:
Financial Risk & Fraud Prevention Reports
Regulatory Compliance Monitoring Logs
Internal & External Financial Risk Audits
Benchmark: 100% compliance with financial governance and regulatory requirements.
7. Digital Financial & Treasury Collaboration
7.1 Integration of Digital Financial Monitoring
Technology
Functionality
Application in Finance, Accounting, and Treasury
ERP System
Budget Control, Financial Reporting, Cost Tracking
Tracks financial KPIs, cost allocations, and regulatory compliance
Aconex
Contract & Payment Document Control
Manages financial governance in contract administration
Power BI Dashboards
Real-Time Financial Analytics
Tracks liquidity, budget performance, and cost efficiency
Banking & Treasury Platforms
Cash Flow, Foreign Exchange, Risk Monitoring
Ensures financial risk mitigation and liquidity management
Benchmark: 100% of financial transactions and reports must be digitally monitored and stored for auditability.
8. Conclusion
The Finance, Accounting, and Treasury Departments at BEC Arabia ensure:
Financial stability, contract compliance, and cost efficiency across all operations.
Full integration of financial planning, procurement payments, and risk mitigation strategies.
Strategic capital management, cash flow optimization, and banking relations.
Regulatory compliance with tax laws, financial reporting standards, and contract finance obligations.
By embedding structured collaboration, digital financial tracking, and governance frameworks, BEC Arabia ensures a financially sustainable and compliant business model in the construction industry
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