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Why do most MEP companies buy through main contractors rather than buying directly from the supplier to save money?

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Question ajoutée par Utilisateur supprimé
Date de publication: 2015/02/23
Alex Al Yazouri
par Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

Just like outsourcing their work to MEP consultant firm to go over the MEP drawings and designs rather hiring an MEP senior engineer.

Deepthi Joseph
par Deepthi Joseph , Senior contracts engineer , AASA Middle East contracting Co LLC

  1. manage work within stipulated timeline, which includes procurement of nuts and bolts also.   
  2. payment terms 

Raja gobal
par Raja gobal , civil foreman , vasco trading & contracting wll qatar

BECAUSE MATERIAL PURCHASING IS DIFFICULT SO HE DO IT MAIN CONTRACTORS

Mohammad Nazim Ehtesham Nazim
par Mohammad Nazim Ehtesham Nazim , Supervisor , Ministry of Defense

To save time, to overcome tension to match the specification mention in tender and make strong relationship with main contractor.

Jaswant Singh
par Jaswant Singh , General Manager Operations , Rabin Singha Heavy Earth Movers Co. Pvt. Ltd

Floating tender with specificification

MAHER ELKHIDIR
par MAHER ELKHIDIR , Interface/ risks/ISA ( independent safety assessor) &contacts , FCC-Metro Riyadh Mega Project

           It is very critical point and could be emerged profoundly in Mega projects, it shows the significance of contracts management and how much we need to spread the culture of contracts management in GCC and how we need to change our mentality to be in parallel with advanced countries such as UK.

         Furthermore, dealing with main contractor rather than supplier in spite of sacrificing in limited benefits, it enables the contract manager to float the tender specifications and to achieve the required balance between benefits and risks. Risk management assessment on regular basis during the CLM, could clarify to the top management the whole picture through specifying the risk and leading an investigation for the root cause weather regularity, finance, currency, operation, legal… etc. then to give the required recommendation to the main responsible persons to mitigate the risk because we cannot remove it totally and as a consequence to avoid the contract collapse then dispute and court.

 

       The skilful contracts manager by using his insight and experience to point to the risk accurately through using visibility, controlling and compliance then he can in his assessment find the remedy as long as he is still dealing in a flexible way with the main contractor. Finally, at the end of the contract both parties are happy to achieve the curtail balance between the benefit and potential risk. Thank you for the important question!  

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