Tamer Zeyad SadiqAssistant Cost Manager| Turner & TownsendRiyadh, Ar Riyad, Saudi Arabia
Hello to everyone,,,
There are some clients, who try to save budget cost on a wrong way!!! They think if they hire small contractors or not qualified with low price, it will save the cost. And they hire consultant or project management to manage the project with various contractors, who haven't experience of project management, contracting, execution, quality,..etc.
This is a big problem, which I faced problem with these cases. And the client blame PM if he not able to control project with this situation. Because, for this case it will cause a bad coordination, many defects, not followed as per baselines, bad communication, other constraint...etc.
At the result, the project was delayed, the budget is overpaid, bad quality...etc.
Is there a good procedure for this case?? Saving Changes...
As PMC company you could have participated in qualifying the contractors. But it is not necessary. Why you guys evaluated the subcontractors from the beginning, Qualifying criteria.
You should have pointed out in your weekly report to the client the delay and the bad quality of the subcontractors.
Do you have documentations and emails to support you?
Many things you could/can do.
I had many projects in Middle East and it is typical style.
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1 reply by Habib Alsaffar
Apr 03, 2018 4:48 AM
Habib Alsaffar
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Mr. Kevin
I agreed and stand with your info.
we submit the difficulty in dealing with subcontractors, but the effort of PM and his team can solve all issues.
Moreover, PM also having many challenges having engagement of subcontractors. In many cases for big projects, PMO signed contract for delivering product or services under master contracts.
However, master contractors sometimes take services from local or sub standard contractors where PM has little control to maintain quality as well as cost.
Subcontractors NOT an issue if all information included in the project schedule, in this part our PM have to control for enhancing work.
PM always can change the quality of subcontractors to follow your company work standard.
crashing project to produce a viable alternative to minimize the lost time in this point may increase the risk, and cost too. Saving Changes...
As PMC company you could have participated in qualifying the contractors. But it is not necessary. Why you guys evaluated the subcontractors from the beginning, Qualifying criteria.
You should have pointed out in your weekly report to the client the delay and the bad quality of the subcontractors.
Do you have documentations and emails to support you?
Many things you could/can do.
I had many projects in Middle East and it is typical style.
Mr. Kevin
I agreed and stand with your info.
we submit the difficulty in dealing with subcontractors, but the effort of PM and his team can solve all issues. Saving Changes...
ahmad qaramanProject Control Manager| Ramz Kayan ContractingRiyadh, Riyadh, Saudi Arabia
As Mr. Drake said, weekly report to the client will decrease the responsibility on the PM.
while there are many projects in middle east choosing the subcontractor only according to the financial proposal, not both financial and technical proposal.
and when the PM couldn't influence the sponsor or his senior manager in decisions like this one, reporting frequently will be the best procedure, but not necessarily leading to the success of the project.
I suggest to make sure that any contract should contain penalties for quality specifications and time of the contract, and it should be clear for the subcontractor, then doing quality audit more often with good controlling for the changes (which's obviously show how much that manager is qualified)
it will reduce the risk of delayed, budget overrun, and bad quality. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Take a look to "Solution Selling" or "SPIN Selling" selling method. Saving Changes...
Tamer Zeyad SadiqAssistant Cost Manager| Turner & TownsendRiyadh, Ar Riyad, Saudi Arabia
Really we should use documents and forms to assess and evaluate performance against these contractors like RFI, QCI, NCR's..etc or other documents and record these documents for future updating if anybody ask!!! But it isn't easy to control like this situation!!!
Also we should follow communication management plan to use report form and make log for issues and document them!!! Saving Changes...
Active risk management is required in this scenario. Periodic risk reviews and assessments need to be carried out.
If it was known that the resources were not of appropriate quality, it needs to be called out as a risk well before the project goes beyond plan and above budget.
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1 reply by Tamer Zeyad Sadiq
Apr 04, 2018 12:10 PM
Tamer Zeyad Sadiq
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I think risk management is a good strategy for these cases to make assessment and reduce uncertainty issues
Saving Changes...
Tamer Zeyad SadiqAssistant Cost Manager| Turner & TownsendRiyadh, Ar Riyad, Saudi Arabia
Apr 04, 2018 2:47 AM
Replying to Karan Shah
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Active risk management is required in this scenario. Periodic risk reviews and assessments need to be carried out.
If it was known that the resources were not of appropriate quality, it needs to be called out as a risk well before the project goes beyond plan and above budget.
I think risk management is a good strategy for these cases to make assessment and reduce uncertainty issues Saving Changes...
