RTA to step up dealings with Mohammed Bin Rashid Establishment

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Source:  www.rta.ae

In its 16th meeting with the strategic members of the Mohammed Bin Rashid Establishment for SME Development (Youth Project Support), the Customer Council of the Roads and Transport Authority (RTA) discussed several key issues relating to enhancing the dealings with companies affiliated to the Establishment, and facilitating the transactions made between the RTA and representatives of the Small Enterprises in a way that nurtures creativity and advancement.

The gathering was held in the presence of RTA CEO and Chairperson of Customers Board Mohammed Obaid Al Mulla, CEO of Corporate Technical Support Sector Abdullah Al Madani, and members of the Mohammed Bin Rashid Establishment for SME Development.

Al Mulla praised the gathering as it helps work out solutions and formulates business programs to upgrade the level of RTA services to the highest global standards applicable at various fields of specialty. “These gatherings are civilized means to raise the profile concepts discussed in a way that contributes to perpetuating the best-in-class practices and adopting them as a means of upgrading the level of services rendered by the RTA”.

Afterwards, a video presentation was made by the Contracts & Procurement Dep’t in which it highlighted the vision and mission of the Dep’t in achieving excellence in the contractual and purchasing services through planning and improving the contracts and purchasing processes with the aim of bringing them in line with the highest standards and gaining the satisfaction of customers and other concerned bodies.

The Dep’t highlighted RTA’s initiatives in supporting the members of the Mohammed Bin Rashid Establishment for SME Development through endorsing and implementing a program by Contracts and Procurement Division as part of its operational plan to support the members of the Establishment. Examples of such cooperative links included allocating a portion of the Purchasing Orders and Tenders to the businesses affiliated to the Establishment, appointing an official coordinator from the RTA to look after and support such projects, holding an extensive gathering with the members of the Establishment in 2007 to familiarize them with RTA vision, mission, projects and needs, and sending invitations for Tenders and Purchase Requisitions to the management of the Establishment for following up with the member companies. The Dep’t pointed out the volume of transactions with the corporate members of the Mohammed Bin Rashid Establishment for SME Development has almost topped 17 million dirham in 2010.

Among the concepts discussed in the gathering, as part of the endeavours to push forward the dealings with the members of the Establishment, was the need to pursue the Open Door Policy in dealing with the members of the Establishment, submitting applications for the Prequalification of the Est. members or applications for their registration in the Purchasing System, holding Open House day with the member companies for better communication and acquaintance with their ideas and proposals, and forwarding a copy of Tender invitations to the Est. for onward submission to its members urging them to take part therein.

A discussion session followed in which RTA officials exchanged views with the members of the Mohammed Bin Rashid Establishment for SME Development in order to familiarize with all issues related to the work nature and how to figure out solutions for the difficulties encountered. Members made a unified suggestion for reconsidering the bank guarantee amounting to 5% of prospective contracts requesting giving them more consideration and concession through setting up a specific and clear system applicable to all companies whereby a 2% guarantee is asked, particularly given the prevailing economic conditions. It was also suggested that an item to be added to Rule No (23) for 2009 allowing for the possibility of deducting the bank guarantee amount from the initial payment made to the RTA such that this policy is applied to the compliant companies engaged in long-term contracts with the RTA, and reviewing the grace period offered for the payment of bank guarantees to the RTA such the delay only starts to count after
the lapse of 3 days from the due payment date.

During the meeting the participants discussed the need for a motion obliging foreign companies undertaking bulky projects, which has recently made contracts with the government departments, to allocate a percentage of subcontracts to the companies affiliated to the Mohammed Bin Rashid Establishment for SME Development. Moreover, RTA Contracts and Procurement Dep’t was tasked to hold intensive meetings with the Finance Dep’t with the aim of sorting out the problem of the delayed collection of dues of member companies and giving them priority in the settlement.