Omotayo, T S; Danvers-Watson, O and Oyegoke, A S (2023) Subcontractor trust issues on payment and valuation practices in UK private projects. Journal of Financial Management of Property and Construction, 28(1), pp. 64-90. ISSN 1366-4387
Abstract
Purpose: Construction project delivery is hinged on the performance of the contractor and subcontractors. In many private construction projects in the UK, there are trust issues between the subcontractor and contractor, especially when there are no collateral warranties to protect the rights of the subcontractors. The purpose of this study is to investigate and identify the causations of distrust between subcontractors and contractors and proffered panaceas. Design/methodology/approach: Qualitative open-ended questions were used. Twenty respondents, mainly supervisors, tradesmen, subcontractors and main contractors in the UK, were interviewed. The thematic analysis approach was used to identify the dominant themes. Findings: The interview findings were presented descriptively, and the frequency approach identified more occurring themes from the interviewees' responses. The six themes contributing to distrust between subcontractor and contractor are financial pressures, partnering approach, payment and trust, nature of trust, internal influence and unfair payment. Practical implications: The findings of this study revealed that many subcontractors have limited knowledge of the clauses in contracts they are entering into. Thus, in addition to obtaining collateral warranties, subcontractors must carefully understand their contractual obligations and payment arrangements before agreeing to be part of a construction project. Originality/value: Although this study aimed to shed light on the distrust between subcontractors and contractors in private UK construction projects, improvements in contract administration, subcontractors continued professional development and improved valuation processes can reduce distrust between subcontractors and contractors.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction project; contract; contractors; payments; subcontractors |
| Index terms: | partnering, main contractor, contract administration, professional development, supervisor, warranty, construction project delivery, interview, subcontractor, methodology, construction project, thematic analysis |
| Subjects: | partnership management, project controls, performance measurement, research methods, production management, methods and analysis, professional development, contract management, data collection methods, practitioner |
| Topics: | Roles and Professions, Stakeholder Management, Project Management, Research Practice, Information Management, Time Control, Contract Administration, Quality Management |
| Descriptive scope: | 5 PCTEA |
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