30/07/2024
Why do Contractors abandon projects?
it's the desire of every contractor to carry out a successful project where he makes profit, deliver timely and quality service. Contract job is a win - win events; the contractor is happy when he makes profit in a project, while the client is happy when the project is achieved timely and very quality.
However, most projects abandoned by contractors were not done intentional. It may be caused by inflation, unforseen circumstances and other logistics.
During the competitive bidding process, every contractor wants to win the job more especially those that don't have current project doing. The eagerness to start a new job comes in. Therefore, can neglect every minor aspect of the work which may increase the pricing rate, and at the same time poses chance of loosing the job. He makes his pricing looks very attractive and affordable, bearing in mind that some minor aspect of the job were kept aside. He believes that he can cover up those areas when the project starts. In some cases, it may work but it's a 50 : 50 chance. This idea of "I can cover up when the project starts has dealt with so many contractors". Along the line, some of the neglected minor works take more money than expected, and this may bring about cost overrun.
Some contractors do not incorporate contingency allowances into their pricing, which takes care of unforseen events that may definitely arise during the project implementation.
At this stage, unnecessary claims and shabby works may begin to occur, because the contractor is no more happy, and the money in his possession may not be enough to continue the job, and maintain good work.
It takes only some dignified persons to sort out for way in completing the job while some leave the project because the fund has finished.
In summary low pricing, desperacy, inflation etc makes contractors to abandon projects.
Be fair in pricing contractors!
Engr. C.U. Odimkpa
Dims Consultants Ltd
