Almost all the contracting companies are facing a shortage of cash flow these days, which is resulting in late payments to the lender banks as well as the sub contractors.
There is a real problem going on with the contracting companies, who are mostly disorganized. They tend to grab the project without adequate manpower and cash, then they start giving the work in pieces to several sub contractors on the promise to pay them after two/three weeks, but in actual they would pay them by monthly small installments in the several months.
At least the govt. should issue a notification that sub contractors payment should not go beyond 60/90 days.
There is a real problem going on with the contracting companies, who are mostly disorganized. They tend to grab the project with adequate manpower and cash, then they start giving the work in pieces to several sub contractors on the promise to pay them after two/three weeks, but in actual they would pay them by monthly small installments in the several months.
At least the govt. should issue a notification that sub contractors payment should not go beyond 60/90 days.
Only the solution is let the client to make the regular progress payment and this is happen in everywhere in the world once county's economy is slow down.
The Best solution is only concentrate in projects where there is cash .means healthy projects.Government has its limit to pay. Most Companies face this problems because of their work completion issue and Work Quality problems not all. Most projects are running just to make money not for companies name or work quality. Its better to close down companies who dont have cash to run. Big companies make most problems.They leg on small company for credit.They fear to invest. investing 3 years is normal.why trying to run away.Main Problem in Doha market is because all invest on guess and prediction based on credit cheques. its common when the country has oil price issue big companies should invest more to overcome this issue to support market fall.
I agree, they should go to jail! The pay-culture in this country is at the lowest level possible. But that also applies to the government. A government project with 500 laborers will be paid in the next financial year because there is no budget in the current year. And how is the owner going to pay the laborers?
There may be some distractions which are pulling them off the work / offices .............. We need to give them a conductive environment in their head offices so they should not travel much ....................
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When companies take on contracts they know what the pitfalls are
The government themselves are not paying on time, EquinOx!
There is a real problem going on with the contracting companies, who are mostly disorganized. They tend to grab the project without adequate manpower and cash, then they start giving the work in pieces to several sub contractors on the promise to pay them after two/three weeks, but in actual they would pay them by monthly small installments in the several months.
At least the govt. should issue a notification that sub contractors payment should not go beyond 60/90 days.
There is a real problem going on with the contracting companies, who are mostly disorganized. They tend to grab the project with adequate manpower and cash, then they start giving the work in pieces to several sub contractors on the promise to pay them after two/three weeks, but in actual they would pay them by monthly small installments in the several months.
At least the govt. should issue a notification that sub contractors payment should not go beyond 60/90 days.
Only the solution is let the client to make the regular progress payment and this is happen in everywhere in the world once county's economy is slow down.
http://dohanews.co/spending-slashed-qatar-prepares-run-qr46-5-billion-deficit/
The Best solution is only concentrate in projects where there is cash .means healthy projects.Government has its limit to pay. Most Companies face this problems because of their work completion issue and Work Quality problems not all. Most projects are running just to make money not for companies name or work quality. Its better to close down companies who dont have cash to run. Big companies make most problems.They leg on small company for credit.They fear to invest. investing 3 years is normal.why trying to run away.Main Problem in Doha market is because all invest on guess and prediction based on credit cheques. its common when the country has oil price issue big companies should invest more to overcome this issue to support market fall.
Anybody who wants to start a company in Qatar must have cash for at least three years to cover all cost.
I agree, they should go to jail! The pay-culture in this country is at the lowest level possible. But that also applies to the government. A government project with 500 laborers will be paid in the next financial year because there is no budget in the current year. And how is the owner going to pay the laborers?
There may be some distractions which are pulling them off the work / offices .............. We need to give them a conductive environment in their head offices so they should not travel much ....................
Yes. Jail the owners and managers . Basic rule of business is cash flow
Owners of projects need to be reminded .................