Why we faced penalty in our project and lost our client?

Delay, Penalty, client upset, and lost client these are the words very often a construction professional happens to listen and you are not exempt from this.

A simple mistake at site can lead to a big disaster. Many business owners choose to ignore them, as most want to solve the issues temporarily and fail to attempt and find a permanent solution.

It happened to us once, and the incident dates back to 2018. We were appointed as a turnkey contractor to build a shop fit-out for a well-known international brand at a shopping mall in Abu Dhabi, UAE. We are allowed to carry out the works during the night only. We have agreed to a tight timeline and as per the schedule, the job was to lay and finish the floor concrete screed on that night. But unfortunately, our team was not able to complete the screed on that night. The workers returned to Dubai without finishing the task. We have sent a team of twelve people from Dubai to Abu Dhabi, which is 150km away. Our team used to travel every day from Dubai where they are stationed.

The agreed duration to complete the shop fit-out project was 45 days and the penalty for everyday delay was AED 2000/- per day ($ 550 approx) and up to a maximum of 10% of the contract value.

The next day investigation revealed that the foreman and the team forgot to take the drum and hose pipe from the warehouse which was required to bring and store water from an outlet located at the end of the service corridor. It was Thursday and the work permit also got expired on the same night.The project engineer forgot to renew the work permit.The next available working day for the mall management was after 4 days as the standard weekly holidays are Friday and Saturday and followed by two days of festival holidays. So the next working day to obtain the work permit was Tuesday. Hence we have lost 5 precious working days. These 5 days and followed by few unproductive days the project suffered an overall delay of 7days.

The consequences boiled down to,.. we lost that precious client and we couldn’t get any further jobs from that client.

So now, who has to be blamed? The foreman who forgot the hose pipe or the project engineer who failed to renew the work permit? or the management system available in our company? The mistakes could have been avoided if our team had been given access to a proper management system in place that will tell them what are the tools and materials required or what points to be checked before carrying out a particular task.

Everyone knows what it takes to acquire a client and what it takes to ruin a client relationship.

In every business, the management’s ultimate goal is to gain good experience, save time and make more money and have repeated clients. We have learned a lesson by paying a big price of losing money, and client. If we had a proper tool or system in place instead of fully depending on the person, we could have avoided disaster.

We feel that you should not get into a similar situation in your business same as ours.

Hence we have created a construction management app that focuses on improving the bottom line of field-level problems like productivity, accountability, and skilled labor shortage. The name of the app is Chekdit. When you have the Chekdit construction management app in your company, you can get the job done even with the minimum experienced people in your team. thereby you can save both time and money.

Many business owners have benefited from our app.

If you are a person who wishes to do a disciplined business, click the link below and sign up for a 14 day free trial.


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