If I can install a light-bulb - I can install a CCTV Camera - Part 1
Dear Govt. of India - the headline is not true, please do not take it seriously.
It seems you have been awarding tenders based on the same belief that if a System Integrator meets certain "Pre-Qualification Criteria on paper" you think he has the knowledge and most importantly the integrity to install, service and support your security system.
Actually its not your fault - its the industry as a whole which is the problem. Add on top of it the tendering system "Lowest Bidder Wins" which is also one of the main reasons you end up with incomplete or delayed projects, bad after sales support/service, sub-standard products and end up spending more in the long run.
Lets look at some of these problems in detail:
1. No Entry Barrier in order to become a System Integrator in the Security Industry:
There is none. Anyone can become a system integrator. They do not need to be knowledgeable about security, they do not need to know how to execute large scale projects, they do not need to have completed similar projects successfully in the past, sometimes they do not need to have the financial resources to execute the project - just enough to get by is good enough. T
he challenge here is that today a lot of companies feel becoming a security systems integrator is a low-hanging cash-rich segment. All they have to bid the lowest, supply a security product (CCTV, Access Control, DFMD, Baggage Scanner), install it and service it form time to time and they will get paid. With one order in hand, they will bid for the next project, then a third, slowly they will have enough projects to become a front runner in the security industry. They work on the principle that they need a good order book and not happy customers. They do not need expensive employees, just someone good enough to read a manual and use a screwdriver. Most of them do not realize that its NOT that easy !
Take for example this SI i did a project with some years ago. He got a good order, actually a great order. Could have put him up in the next ring easily - all he had to do was install 30 cameras in 30 critical locations (each) across India. He did not have a team as such so hired a few (good) engineers, hired a contractor and got about his business. He opened LCs left right and center with a bank (on the premise hes got an order from the Govt. of India) and went about supplying the material.
Now for the tough part - Installation, commissioning, timely completion, verifying the supply, and getting paid from his customer.
No points for guess what happened - he had never managed a project this big, no cash available to pay contractors, he did not have adequately trained staff hence the installation was mired with problems, and because he was not able to hand-over the site on time, his payments got grossly delayed.
So the bank doesn't get paid back on time, interests rising, no more credit given, cannot generate cash to pay off contractors, one can imagine what happened to the project.
Whats also sad is that the said Govt. body could not and did not stop these issues. It would take ages to go the legal route, there were no provisions in their finance policies to help the SI complete the project, and mostly it damaged the reputation of the OEMs and Vendors who supplied the material. Worse - they are now stuck in a log jam with no completion in sight.
All in all something could be avoided by checking
1. Had this SI completed such large projects before ? (now he had on-going projects and the tender just asked for copy of PO for qualification. Needless to say all those projects are also in the same state). Does he have a satisfactory completion certificate ?
2. Does he have necessary funds to execute the job ? (he was only asked to supply a 10% bank guarantee). How are his financials ? Does he survive on rolling the advance he gets or has a healthy balance sheet ?
3. Whats his organization structure - does he have a project manager, does he have certified trained engineers ?
4. How old is this company ? What is their expertise ? Who are the promoters ? All this can look good on paper but in reality its a little different at times.
5. Has he worked with the OEMs before or this is a one-off deal with them?
This could be a one off problem but strangely its becoming more and more common these days.
(END OF PART 1)
(Note: All the thoughts and recommendations in the post are purely my personal observations and is in no way a representation of the organization I work with)