Time and time again we are faced with a decision on which contractor we would like to have take on our projects. We will use references, hearsay and quick google searches to find a suitable sub-contractor. We will then send that company a BOQ, an inquiry and try to get the best prices from them. Once we are happy with the price, we then get started on the job.
Sooner than later we begin to realize that company we are using to get out job done actually isn’t all that they seemed. The price was great, they were very co-operative and we built a trust. Slowly the cracks start to appear and we are faced with reality. The contracting company we chose hardly has any man power, they don’t have any equipment of their own and they don’t have any real experience to finish the job. Not only that, they aren’t financially capable of supporting themselves! This is becoming a nightmare. Now we are stuck half way in the project and our client is pressing us harder than ever to get the job done. All we have is excuses and a massive headache.
The subcontractor that we chose is now subcontracting to other companies to get your job done which is creating a huge chain of inefficiencies. This is now affecting our image with the client, and now we’re racking up penalties. Things couldn’t be any worse it seems.
This is example is all too common with Saudi Arabian contracting companies and construction companies in general. Many companies fail to do their due diligence by properly doing a background check on prospective subcontractors. They often over-value the lowest bidder and neglect the importance of the experience and capability of a contracting company.
You can avoid this issues if you spend time getting to know the potential subcontractor. Understand their man power strength, their heavy equipment fleet, how many and what kind of projects they have completed, what clients they have worked with. You will be surprised to find out that a majority of companies don’t have their own heavy machinery and they are renting them out from other companies. You will also end up learning that most companies don’t have the experience that they said they had.
Don’t chase the lowest bidder because you will end up running into way more issues in the future and end up spending more money than you thought you would.
Now you have an idea of what makes a true contracting company in Dammam, and you will keep your eyes open when you see a deal that is too good to be true. So keep this in mind and Mega Contracting Ltd. Aswell in your future decisions.
Finding Real Contracting Companies in Dammam