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Procurement Market Intelligence Report

Water Well Drilling Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Water Well Drilling Services?

What is the average price of Water Well Drilling Services?

This procurement report includes pricing information to help you purchase Water Well Drilling Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Water Well Drilling Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Water Well Drilling Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Water Well Drilling Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Water Well Drilling Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Market share concentration is low for water well drilling services, with the top four suppliers generating less than 10.0% of market revenue. The large number of suppliers, at about 8,500, and their generally small size reflect this market's fragmentation. About half of all suppliers employ fewer than five people, and... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Experience

How many wells have you drilled in aquifer formations similar to the one on my property?

What equipment and materials does your firm use to give you a competitive advantage in local geologic conditions?

How long have you been in business under your firm's current name?

What industry associations do you belong to and how long have you been a member?

Personnel

What are the titles and specialties of the crew members who will service my well site?

How many years of experience can I expect my crew to have?

What is the average tenure of your employees and do you have any problems with turnover?

Who will my main contact person be and what is their position at your company?

When and how often will my contact person review their crew's progress with me?

What is your escalation plan in the event of a problem at my well site that your crew is unable to fix?

In response to COVID-19 and the economic decline, have you had to lay off or furlough any employees? If so, how has the quality of your services been impacted?

Drilling Equipment

What is the size and composition of your rig fleet?

How have your rig fleet and equipment evolved to meet demand during the past three years?

What are the limitations of your equipment in terms of depth, borehole diameter and geologic conditions?

What machines and equipment will you use at my site, and how much space will they require to operate?

Do you source any materials that have been highly impacted by the pandemic? What impacts has the pandemic had on your supply chain?

Additional Services

Beyond well drilling and completion, what services do you offer to make my well operational or improve water quality?

How are service rates discounted when additional services are purchased with well drilling?

Based on the expected characteristics of my well, what additional services do you recommend in conjunction with well drilling?

How will service integration alter my satisfaction as a customer and the quality of my well?

Well Design

Based on geologic conditions and the intended use for my well, what is the optimal depth and width of the well?

What procedural steps do you take when planning and constructing wells?

What types of well logs do you run, and how do you base your well design around their results?

How do you ensure that a well requires the minimum amount of artificial lift to transfer water to the surface?

Well Quality & Life Span

What steps do you take in terms of design, drilling methods and materials to ensure that the life spans of your wells are maximized?

How do you anticipate the groundwater level to change over the course of the next several decades? Will my well be able to produce water given this change?

If my well runs dry, will it be a good candidate for hydrofracturing to restore its production?

How do your methods for well screening and gravel pack creation result in longer well life spans compared to the well life spans of competitors?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should provide a total budget that is being allocated to the services being requested.

Buyers should provide a breakdown of the budget, including information about how much of the budget will be allocated toward the services themselves and how much will be allocated to additional costs, such as travel and lodging, if relevant.

Buyers should state their desired pricing model and payment method, including their preferred frequency of payments.

Selection Criteria

Buyers should consider the supplier's level of experience with work that is similar to the work being requested by the buyer.

Buyers should assess the experience of the individual employees to be assigned to the buyer's project.

Buyers should consider the supplier's safety record and incident rate.

Buyers should consider the proposed cost of the project from each supplier.

Project Schedule

Buyers should provide a list of key dates that pertain to the RFP process, such as the final date to submit questions and bids.

Buyers should provide a list of key milestone dates that exist throughout the length of the contract, such as the first day services are to begin and the date the water well is expected to be complete.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk is moderate overall for water well drilling services. Moderate upstream risk stems from mining equipment wholesalers and manufacturers. Droughts during the period in the West region have increased demand for water well drilling equipment, particularly in California, the nation's largest producer of agricultural goods. As a result,... Subscribe to learn more.

HIGH

MEDIUM

LOW