The Biggest Mistakes Made by Geotechnical Drilling Companies
The Biggest Mistakes Made by Geotechnical Drilling Companies in Saudi Arabia
The recession in Saudi Arabia affecting all type of business. Oil price dropped and the country entered the Yemen war. Small geotechnical drilling companies made some mistakes to survive the current recession. Some of small companies did not survive and they closed/sold their business. below are the biggest mistakes:
1- They invested in the machines not the humans.
The ideology in Saudi Arabia is “I can bring anyone from anywhere to work for me” So the human development are not their interesting; the machines worth more! However, untrained worker with less than $1k/month salary can destroy a half million dollars machine in one second.
2- They did not care about the ongoing projects.
Most of the ongoing projects where need to some management before it ended. They cared about the huge future upcoming projects. Unfortunately, the government stop all future projects to save budget for the Yemen war. Moreover, the worst scenario happened, the ongoing projects always have a second phase or maybe three phases. The main contractor decided to look for another geotechnical service because they are not satisfied with the current service provider. I’ve got many calls asking for bid your department price for the project x. as a part of the geotechnical business I already know that project is for xyz company how to give price quotation for ongoing project! Then we realizing the situation changing rapidly and that was a new era of “quotation price war” behind the scene.
3- They invested in advertising not in business relation building.
In my experience Ads does not working in drilling industry. When you need service you pick up your phone and call that person who working in x company asking him about what option do you have in a specific service.
This point was the most money bleeding in their budget while it was easy to start workshop for maintenance, but the high cost of starting workshop and it is not easy to find experienced mechanical engineer specialized in drilling rigs; make them drop this option but in long term, they suffered from maintenance cost.
4- They outsourcing rigs maintenance.
This point was the most money bleeding in their budget while it was easy to start workshop for maintenance, but the high cost of starting workshop and it is not easy to find experienced mechanical engineer specialized in drilling rigs; make them drop this option but in long term, they suffered from maintenance cost.
5- They purchasing their drilling tools for rigs (tricones and coring tools) on demand.
They does not have geotechnical drilling store. That affected their performance in scheduled projects because of drop shipping seller lack-time. Instead of that they could investing more money in drilling tools stoke before starting projects.
6- Accepting bad payment method or accepting bad payment condition after finish the work.
Most of engineering projects was depending on approve from government and always all ministries have outsource consulting office. Usually you will not get your money until you finish the project that was the worst payment condition should be avoid in the negotiate stage.They forget about operation cost. So, they get lost in the middle of the project.
7- Ignoring small domestic projects while their rigs in recession.
(For example four boreholes investigation for a villa project with report). In rare cases this project might be consulting by large consulting firm might recall this geotechnical service in large project.
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First of all, glad to join the community here.
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I hope this helps!
Charlotte
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