The following article written by Roelof van den Berg, CEO of the Gap Infrastructure Corporation (GIC), looks at contractor’s capabilities, ethics, and experience – factors paramount in the successful execution of any cold chain project. This is part one of a two-part series.
This holds particularly true for large-scale, regionally critical infrastructure projects within the refrigeration and cold chain sectors. From expansive distribution centres ensuring food security to temperature-controlled storage vital for pharmaceuticals, these projects underpin essential services that millions rely on daily. Nationwide, the increasing demand for efficient cold chain logistics and reliable refrigeration infrastructure, driven by factors like urbanisation and the need to maintain product integrity, underscores the critical importance of exceptional due diligence in selecting the right partners.
For project owners, government agencies, or contractors seeking subcontractors for these major undertakings, identifying potential partners who may be overextended or simply not the right fit for the task is crucial. Spotting these warning signs early can save significant resources, prevent frustrating delays, and safeguard against the reputational damage resulting from substandard work.
Drawing from experience in managing complex infrastructure projects with various subcontractors across South Africa, here are five red flags that should prompt decision-makers to pause and carefully reconsider engaging a contractor or subcontractor in the refrigeration and cold chain sectors:
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A lack of verifiable references
The first verification check to perform, and often the earliest indicator that’s something’s amiss, is if an applicant contractor doesn’t have a written portfolio or website with substantial evidence of competence in past projects. Another is if they cannot provide a list of references with contact information for similar projects completed.
It’s important to speak directly to past clients, rather than rely on curated testimonials. Real conversations will reveal whether the contractor adhered to timelines, communicated issues proactively, and delivered quality outcomes consistently.
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A fragile financial backbone
Early in the bidding process, ask the contractor whether they have sufficient internal financing capacity – can they effectively mobilise resources, materials, and skilled personnel for at least the initial stages of the project without demanding significant upfront payments?
While standard practice often requires some form of deposit or partial payment, contractors who insist on large disbursements before meaningful work has even begun may be sending a warning signal. GIC is additionally always careful in ensuring potential partners can shoulder at least part of the operational load themselves – rather than relying heavily on client funds from day one.