On-boarding & Pre-Qualification

Overview

The Subcontractor Onboarding & Prequalification process ensures that all subcontractors working with BEC Arabia meet the company's technical, financial, legal, and safety standards before they are engaged in any project. This structured process is designed to minimize risks, ensure compliance with KSA regulations, and maintain high-quality execution in mega projects.

Proper onboarding and prequalification help:

✅ Procurement Teams – Evaluate subcontractors based on financial stability, previous project experience, and compliance with contract requirements. ✅ Project Management Teams – Ensure subcontractors have the capability to meet project deadlines and quality standards. ✅ HSE & Compliance – Confirm that subcontractors comply with safety, legal, and environmental regulations before entering the project site. ✅ Finance & Legal Teams – Validate subcontractors' financial stability and contract liability.

This process must be completed before a subcontractor is awarded a contract and mobilized to any project site.

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Step-by-Step Onboarding & Prequalification Process

1️⃣ Subcontractor Prequalification Submission

A subcontractor must submit the following documents to BEC Arabia’s Procurement Department for evaluation:

🔹 Company Profile & Experience – List of completed projects, organizational structure, office locations. 🔹 Trade License & Commercial Registration – Verification of legal business status in KSA. 🔹 Financial Statements – Past 3 years' audited financials to assess stability. 🔹 Previous Client References – At least three references from previous large-scale projects. 🔹 Certifications & Approvals – ISO certifications, municipality approvals, and other regulatory requirements. 🔹 Insurance Certificates – Workmen's compensation, third-party liability, and professional indemnity insurance. 🔹 HSE Compliance Documents – Safety policies, risk assessments, and safety training records.

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2️⃣ Prequalification Evaluation Criteria

BEC Arabia evaluates subcontractors based on five key criteria:

Evaluation Area	Minimum Requirement	Assessment Responsibility
Technical Capability	Must have completed at least 3 projects of similar scale.	Procurement & Engineering Teams
Financial Stability	Must show a positive financial position with no major liabilities.	Finance & Procurement
Legal Compliance	Must be legally registered in KSA with valid trade licenses.	Legal & Compliance
HSE Compliance	Must have an approved safety system with incident reports.	HSE Department
Workforce & Equipment	Must demonstrate adequate workforce and equipment.	Engineering & Project Team

Each subcontractor is assigned a Prequalification Score, and only those scoring above 80% are approved for further consideration.

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3️⃣ Approval & Vendor Registration

Once a subcontractor passes the Prequalification Evaluation, they must be officially registered in the BEC Arabia Approved Vendor List (AVL). This includes:

✅ Vendor ID Assignment – Generated in the procurement system. ✅ ERP Registration – Subcontractor is added to the financial system for invoicing & payments. ✅ Contractor Code Issuance – Used for tracking compliance. ✅ Site Induction Booking – Ensuring that the subcontractor's workforce undergoes mandatory safety induction.

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4️⃣ Subcontractor Onboarding Process

Once the Prequalification & Vendor Registration is completed, the subcontractor proceeds with onboarding, which involves:

📌 Kickoff Meeting with Project Team – Subcontractor meets with the project team to discuss scope, responsibilities, and project schedule. 📌 Technical Submittals & Approvals – Shop drawings, material submittals, and method statements must be submitted. 📌 HSE & Safety Induction – All site personnel must attend safety training before mobilization. 📌 Site Mobilization & Equipment Inspection – Subcontractor mobilizes workforce and submits a mobilization checklist for approval.

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Roles & Responsibilities in the Onboarding Process

Department	Responsibility
Procurement	Reviews documents, conducts evaluation, and registers approved subcontractors.
Legal	Ensures compliance with KSA regulations and contract terms.
HSE	Confirms subcontractor compliance with site safety standards.
Finance	Approves financial registration and payment terms.
Project Team	Ensures subcontractor understands technical requirements and mobilization schedule.

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Special Cases & Exceptions

🔹 Emergency Onboarding for Critical Works

If an urgent subcontractor is required due to project delays or unforeseen issues, an Expedited Onboarding Process may be initiated with: ✔ Approval from the Procurement Director. ✔ Financial & legal clearance within 48 hours. ✔ Temporary work approval pending full registration.

🔹 High-Risk Subcontractors

Subcontractors with a history of financial instability, safety violations, or project delays may require: ✔ Additional guarantees or performance bonds. ✔ Closer compliance monitoring with frequent site audits. ✔ A trial period before full approval.

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Common Issues & Resolution

1️⃣ Subcontractor Fails Prequalification

❌ Issue: Subcontractor does not meet financial or technical requirements. ✅ Solution: Subcontractor may reapply after six months, or they may be considered for smaller-scale contracts first.

2️⃣ Subcontractor Delays Mobilization

❌ Issue: The subcontractor has been approved but fails to mobilize on-site. ✅ Solution: Issue a mobilization deadline notice. Failure to comply results in contract cancellation and replacement.

3️⃣ Non-Compliance with HSE Requirements

❌ Issue: Subcontractor's workers fail to complete site safety training. ✅ Solution: HSE Access Suspension until full training completion.

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Documentation & SharePoint Storage

To maintain compliance, all prequalification and onboarding documents must be stored in the Subcontractor SharePoint Folder.

📁 Key Documents Stored in SharePoint

Document	Purpose	Access Link
Prequalification Checklist	Tracks all required documents for approval.	Open Folder
Subcontractor Evaluation Report	Scores each subcontractor based on criteria.	Open Folder
Vendor Registration Forms	Official registration form in the ERP system.	Open Folder
Kickoff Meeting Minutes	Agreed scope and responsibilities before mobilization.	Open Folder
HSE Induction Logs	Records of subcontractors attending site safety training.	Open Folder

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Final Notes & Key Takeaways

✅ All subcontractors must be prequalified before signing a contract. ✅ Only approved vendors in the BEC Arabia AVL can be engaged in projects. ✅ HSE induction is mandatory before any subcontractor is mobilized. ✅ Any deviations from the standard process require Procurement Director approval.

For any questions regarding subcontractor onboarding, contact [email protected] or the Project Management Team.