Requirements for working as Civil / Mech Contractor

[sharjeel]

What infrastructure (Workshop, Manpower skillfulness, fabrication equipment etc) is required for a Civil / Mechanical Contractor to start work as Civil / Mechanical Contractor in Pakistan?
What codes and standards should one be familiar with?
For simplicity lets assume that mechanical job scope is restricted to piping work only. Fabrication of Pressure vessels is omitted from the scope for the time being.

Waiting for your valuable feedback.........

[ashfaqanwer]

The best thing to start with is to visit the market and the people already doing this. Get more and more information available with everybody starting from technician level to the management / owner's level. This would set your basis, in engineering language, design basis which may include:
1. Best site where to set up office and shops (resources & customers must preferably be nearby)
2. Scope of work available in the market (this would help you in investing in the right direction - Do not make ambitious moves)
3. Resources mandatory to have (basic workshop machinery, tools & equipment, manpower)
4. Study the market in complete depth so that you may come up with things required but not being done
5. Take some time out and meet your customers, listen them silently as what they require, what not available in the market
6. Focus on technology - a very important point of focus (Pakistani contractors are trying hard but still behind many)
7. Define your objective, select your customer (you cannot be the KING for all sort of industries - better to target specific ones)
8. Make calculations for investment and invest in parts - for example start investing for fabrication / erection of only CS piping but with improved technology

This is what comes to my mind.

[sharjeel]

Yes reference for Contractors and their major clients

[ashfaqanwer]

In which city you are interested to set up your business?
Basically, it depends on the investment you have planned to make. Start contacting DEL workshop guys working in Lahore and Karachi having good set ups.
Then contact FAUZ Engineering, SYNERGY and other local contractors.

[SimS]

Very good points by Ashfaq.

I would like to add something more from my experience working with some of the mechanical and civil contractors.

Like the case in every market, whether you segment it vertically or horizontally, there are a few key players that taking the majority of business. The only area left for new entrants is pockets that are not covered by these players. Most starting contractors I have come through have to deal with cash flow problems eventually, because they end up entering the wrong side, without doing their homework, and eventually get out of business pretty fast. On top of it, no statistical data on market (based on market type) is available locally, so the lead time for setting up this type of setup is pretty long, because you either have to figure out the market on your own, or get experts on board who already know the market.

As far as technology is concerned, most contractors in Pakistan, either don't have the capacity, or simply fail to realize the importance of using advanced tools, technologies, and innovation to improve productivity. But that could change, given the pressure of global competition. Status quo is prevalent, especially in the government sector where winning the business generally depends on your contacts, not on your capacity to deliver. Once you are in the market the next big challenge comes to find the right skilled workforce who can deliver. Then in work such as engineering and contracting, you need to be aware of the licensing, and regulatory mechanisms etc.

So in short, it is a long haul, and there is no "quick" way to success. Basic requirements would be to start small, with a focus on an area which you are passionate/skillful about, do your homework, and keep an eye on your cash flows.

You can find out more about the latest report about doing business in Pakistan per city basis from this link :
http://www.doingbusiness.org/subnationa ... istan.aspx
The full case study can be downloaded from here :
http://www.doingbusiness.org/Documents/ ... kistan.pdf

[ashfaqanwer]

Hi Sim,
Great inputs. Useful links.

[engr.abrar]

Good inputs Sim. One thing I like to add here.

In the market situation like the one today in the world and specially in Pakistan, be flexible in your business. Dont built your facility which is only good for one work. Make it flexible as far as you can. Dont enter into a business where you commit yourself for a single job. One example I like to share with you. One person in karachi I know has developed a machine shop facility for making parts for automobile and other industries. Due to current situation of industry all over Pakistan his business went down. I come to know through one of my freind that now the same shop is make household products(brass lamps, wood crafts etc) using the same machines and making much more profit.

Hope you get the point.