Having worked on 2 multi billion dollar projects in Saudi and UAE the price the bids are in very rarely is the final total cost of a contract or purchase order.

Having worked on 2 multi billion dollar projects in Saudi and UAE the price the bids are in very rarely is the final total cost of a contract or purchase order. Ongoing changes, corrections, under preforming suppliers that have underestimated the complexities and cost are always present. The client will need to come up with ways to pay these additional cost if he does not want to sit on a half built plant. It is not uncommon that contractors go bust under this price pressure and another one with a more realistic cost will come in to save the day. Problems like this often involve Saudi or UAE government or royalty as the risk of loosing face is hight. Things then get smoothed over with a cup of tea behind closed doors.