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Can 70-80% of any Projects be sub-contracted to external agencies? Can this way be more profitable?

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Question ajoutée par Utilisateur supprimé
Date de publication: 2016/12/31
Md Fazlur Rahman
par Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

Subcontracting to external agency is done in order to bring in relevant expertise and skill in the project. If subcontracting brings efficiency and economy, 70-80 percent subcontracting is OK. In this case, the main contractor shall have to coordinate with the external agencies to keep synergy and schedule and manage risk carefully.

However, for executing multi-dimensional project, another workable form is Consortium where several contractors work together under single contract  and share the risk and return jointly

Emmanuel Wamweta
par Emmanuel Wamweta , production supervisor , Tembo Steel Rolling

I fully agree with Mr. Fazlur Rahman's excellent submission. Thanx for the invitation

hisham abu dagga
par hisham abu dagga , Project Manager / مدير مشاريع , مؤسسة عبدالكريم العواض للمقاولات

 Thank you for the invitation

 

I agree with colleagues answer

Omar Saad Ibrahem Alhamadani
par Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks

Yes they can, but not much profitable 

Regards 

I agree with the given answers from the experts

DR MD ANWAR HOSSAIN
par DR MD ANWAR HOSSAIN , Moderator , bayt.com

Thank you for your invitation. I agree with colleagues answer & looking forward to new answer.

Mohammed Osman Mujahid
par Mohammed Osman Mujahid , Senior Facilities Manager , Telangana Facilities Management Council

Often subcontracting to external agency is required to bring in relevant expertise and skill for certain nature of work within the project. Most instances 70-80% of Project being subcontracted will not be viable and cost effective; it will be good that such project is not undertaken. 

Abdul Rehman
par Abdul Rehman , Electrical Engineer , Tamdeed Projects

Thank you for the invitation. I agree with the answers shared by the experts!

HESHAM EMRAN
par HESHAM EMRAN , مدير مشروع , الأريل

Not always it depends on the company resources and the efficency of the workers

Sherjeel Khalid
par Sherjeel Khalid , Senior Manager , nordcloud

If the inhouse expertise is missing, even all of project can be subcontracted, with only one person inhouse managing the project. Smart companies learn from subcontracting by asking subcontractor to follow a competence transfer process.

يوسف دمدوم
par يوسف دمدوم , مهندس و مسير , مقاولة اشغال البناء

The work done by hiring a subcontractor is considered an effective way to win time in execution speed and cost effective

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