Feasibility study for a contracting company project in Saudi Arabia

Feasibility study of a contracting company project in Saudi Arabia. A contracting company project is one of the correct models for successful projects, especially when it is in the Kingdom of Saudi Arabia and the Gulf countries in general. The reason behind this is that the contracting market in Saudi Arabia and the Gulf is an open market and is not limited to the public sector or also with complex conditions that make it a closed market for small companies, in addition to the large market for the contracting sector in Saudi Arabia and the Gulf, which is one of the largest markets in the world, as you find in every city works related to construction, finishing and construction, all of which fall under the name of contracting.

Feasibility study for a contracting company project in Saudi Arabia

We will discuss the feasibility study of a contracting company project in Saudi Arabia in the following points:

A contracting company project can be established with a small, large or medium capital, which makes it a project suitable for all types of capital.
In the case of small capital, you can rely entirely on renting and construction equipment, and in this case, the net profit will be less than other profits.
However, in the case of medium capital, reliance is placed on purchasing a limited number of equipment, and if additional equipment is needed, it will be rented.
In the case of a large capital, reliance is placed entirely on the project’s equipment, and in this case the highest profit margin is achieved.

1. Place of establishment of a contracting company project

The location of establishing a contracting company project is one of the most important things related to the feasibility study of a contracting company project in Saudi Arabia, and we will discuss it below:

The location of the project is very important for its success and plays a major role in attracting many customers in order to achieve profits. For this reason, you must choose the project location very carefully.
It is best for the organization to be located in the capital, in a large city, or in an area known for the presence of administrative offices for institutions, as well as public and private bodies, or in one of the new cities that are still under construction. It is best for it to be on the ground floor or in an apartment inside a large, modern building with a good appearance and also overlooking the main street.

2. Area of the contracting establishment

The area of the contracting establishment is one of the basics of the feasibility study for a contracting establishment project in Saudi Arabia, and we will discuss it below:

Of course, the larger the company's headquarters, the more it will gain customer trust. Therefore, it is best for the headquarters to be no less than 50 square meters.
It is not a problem that the company's website cannot be small, as there are contracting companies that operate through small offices without any problems.

3. Contracting establishment license

One of the important things for a feasibility study for a contracting company project in Saudi Arabia is the contracting company license, which we will discuss below:

Personal identification card of the project owner or all partners.
Bring a criminal record of the owner and manager of the establishment. It must be free of any criminal or misdemeanor penalties.
Bring the original and a copy of the zakat document.
Bring the original and a copy of the income certificate.
Bring the original and a copy of the municipality certificate within the area where the institution’s headquarters is located.
Bring a copy of the ownership contract or the lease for the company’s headquarters, as well as its branches and warehouses, and provide a sketch of the address.
Bring a certified copy of the file detailing the powers and duties of the manager responsible for managing the establishment, in addition to a certificate of experience or studies proving that he is qualified to carry out this activity.
Submit a copy of the company's commercial tax register. To do this, you must open a commercial contracting account for the company in order to obtain the license.

4. Equipment for a contracting company project

The equipment needed for a contracting company project is one of the most important things related to the feasibility study of a contracting company project in Saudi Arabia, and we will discuss it below:

The headquarters must be equipped with a set of desks, chairs and tables.
Sources that ventilate and moderate the climate in the headquarters.
Computers as well as printers for printing contracts and invoices.
Having a small kitchen to provide hospitality to customers.
A quantity of paper and a set of pens.
Install a large signboard to attract attention, with the company's name and customer service contact numbers on it.
Providing a large warehouse for storing raw materials as well as the company's equipment and vehicles.
The state requires that the institution's headquarters be equipped with some fire extinguishers as well as safety and security elements, so it is better to install devices that operate the alarm in the event of a fire and fight the fire.
It must be checked periodically to ensure its safety and suitability for work.

5. The labor required to operate the project

The labor needed to operate the project is one of the things related to the feasibility study of a contracting company project in Saudi Arabia, and we will discuss it below:

Customer service staff.
Marketing Officer, Sales Representative and External Relations.
Chartered Accountant
Security officer.
sanitation worker.
A group of operators as well as drivers of equipment and vehicles must have a driving license.
A number of workers for construction work as well as interior and exterior finishing works as well.

6. Marketing the services of the contracting establishment

Marketing the services of a contracting company is one of the most important factors required for a feasibility study for a contracting company project in Saudi Arabia, and we will discuss it below:

You must develop a good marketing plan for your organization in order to attract customers and familiarize people with the organization's name and the services it provides.
You can market through the Internet, as it is one of the most important marketing methods nowadays.
Or by launching an advertising campaign.
Or by sending sales representatives to companies and building materials stores, for example, and agreeing with them to recommend you to their customers by distributing small promotional cards to customers who visit them.
Or also by relying on visual or audio media.

Contracting company project profits?

The contracting company makes a significant profit annually, as this project is among the most profitable projects. Profitability depends on its size, the number of projects you have implemented, the total annual expenses, and other factors.

How do you get contracting projects?

By creating a marketing plan that attracts customers to you, as through the marketing plan, the name of your institution will be known and then customers will come to you.

What are the most important factors for the success of a feasibility study model for a contracting company project?

Determine the company's scope of work.
Choose a place close to urban areas.
Conduct a good market study.
The best quality machines and equipment.