DMT rolls out new rules for engineering and contracting firms: Abu Dhabi’s Department of Municipalities and Transport (DMT) issued an administrative decision introducing a set of legislative amendments to the classification system for engineering offices and contracting companies in the emirate, effective immediately, Wam reports. The decision follows meetings with local and international sector stakeholders and comes as part of DMT’s quarterly assessments of engineering establishments.

What’s new? The amendments remove the requirement to operate in at least two different activities for higher-category licensing, widening the number of establishments eligible to be classified as top-tier. Local firms, along with branches from other emirates or GCC countries, may now apply directly for higher categories based on their experience and capabilities.

The project-value requirements for Emirati-owned engineering establishments (contractors) has also been reduced, easing classification renewal, Wam reports, without clarifying what the new threshold is.

What we know: The special-grade classification requires a minimum of AED 20 mn in equity, three engineers with at least 10 years of relevant experience to be employed, and executed projects valued at at least AED 240 mn over the past decade, according to auditing firm HLB. This allows them to bid for government projects worth AED 100 mn and above, according to Clyde & Co (pdf).

More operational flexibility: Companies may also now use the expertise of a local corporate partner or a partner from other emirates to meet classification standards.

Reporting changes: The validity of the annual financial report required for classification has been extended to one year and six months, reducing delays linked to expiring documentation.

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