Issues in subcontracting practice

Arditi, D and Chotibhongs, R (2005) Issues in subcontracting practice. Journal of Construction Engineering and Management, 131(8), pp. 866-876. ISSN 0733-9364

Abstract

Subcontractors are very important to the successful completion of most construction projects, yet the many issues involved in subcontracting practice are seldom acknowledged. A literature review indicates that these issues include the timeliness of payments by general contractors, the process of selecting subcontractors, subcontractor bonding, construction insurance, safety issues on the construction site, partnering arrangements with various parties, and productivity issues. A questionnaire survey was administered to subcontractors, general contractors, and construction owners to investigate these issues and to determine the differences in perceptions between the parties. The results confirm the existence of the issues identified in the literature and in addition indicate that (1) the practice of retainage withheld by general contractors seems to be acceptable to many subcontractors unless its magnitude is large relative to the size of the firm; (2) postaward bid shopping by general contractors is sometimes justified, particularly in cases where the scope of subcontract work is modified; and (3) current bonding and insurance practices are adequate unless the additional transferred risks are excessive. Recommendations are made on the basis of the findings to minimize the negative effects of said issues.

Item Type: Article
Uncontrolled Keywords: bids; insurance; partnership; productivity; safety; subcontractors
Index terms: general contractor, construction site, literature review, safety issue, survey, subcontract, subcontractor, construction project, questionnaire, subcontracting, owner, productivity, partnership, partnering, insurance
Subjects: economic analysis, data analysis and analytics, work location, practitioner, contract type, organization, data collection methods, sociology, partnership management, financial risk, production management, management
Topics: Stakeholder Management, Roles and Professions, Cost Management, Business Strategy, Project Management, Research Practice, Site Management, Contract Administration, Supply Chain Management
Descriptive scope: 4 PCEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here