A cause for concern

Dear Sir,

The report “QF terminates contract for Sidra facilities construction” (Gulf Times, July 23) is shocking indeed.

A similar situation took place with the new Hamad International Airport (formerly known as New Doha International Airport, NDIA) project some three years ago when a major contract was terminated a few months before its proposed date of inauguration. This and several other factors resulted in a  delay in the new airport’s full opening by several years. Finally, we have the airport in operation from this year.

Now the ambitious world-class multibillion-riyal Sidra project is facing similar situation.

These developments are a cause for deep concern and call for serious thinking and urgent action by authorities concerned in handling large-scale contracts already awarded, being awarded and in tendering stage.

Most of the projects are being awarded now go to the lowest bidder. This is the case even if the bid price is extremely low, may be much lower than the budget, without any basis on pricing. During negotiations, the price often gets further reduced to dangerously low levels. There appears to be no analysing on how such contractors can function. 

It is important to evaluate the technical bids by expert teams. Also, major factors like bidders’ financial capability, their track record in timely completion of similar projects and in treatment to human resource and sub-contractors, capability of proposed sub-contractors/vendors, history of defaults and litigation in previous projects, particularly with regard to  payment to workmen, sub-contractors and vendors and CVs and performance of senior project management staff, all need to be reviewed.

Commercial bids of only the bidders with satisfactory track record must be opened and evaluated.

Qatar cannot afford any delay in execution of its ambitious projects due to any reasons, including shortcoming from designers, project consultants, projects management consultants, lack of dedicated and fast-track support from other authorities and stakeholders like utility owners, Traffic Planning Department and Urban Planning Department, etc. It must be noted that there is already a delay in award of several contracts by over one year.

It is important to have a built-in safety mechanism to protect and compensate the contractors against price rise in materials, rentals for accommodations, additional requirement to upgrade facilities for human resources, etc which will definitely take place during the period of contract.

If contractors start losing money for reasons beyond their control, their very foundation shakes even if the company is very big in size. In some cases, it may lead to bankruptcy. Such a scenario is sure to delay the projects and may lead to a panicky situation with cancellation of contracts. Appointment of new contractors and final completion may get delayed by several years as it had happened in the case of the Hamad International Airport and Sidra.

Some countries, particularly from the West who are unhappy with the FIFA-2022 award to Qatar, are closely watching the developments in the state and may continue their negative campaign in case of any delays in any of the hundreds of projects related to the World Cup.

Extreme caution, positive and timely action, strong will to succeed as a team of all stakeholders (owner, designer, consultant, contractor, subcontractors and vendors involved in each project) are major factors in the successful completion of all projects.

Establishing standard procedure to conduct periodic reviews on progress, grey areas and issues causing delays must be followed in every project. Alternative plans to catch up with any major slips are to be established.

 

P S Pai, PO  Box 2542, Doha  

 

Qatar Week in Barcelona

Dear Sir,

Barcelona in Spain is becoming a popular destination for Qataris.  It would be great if a Qatar Week is to be held in this city so that people can know more about Qatar.

 

Xavier Tudela, [email protected]

 

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