Defining the attributes of power and dependence in general contractor and subcontractor project-based relationships: Understanding the subcontractor's perspective

In general, a contractor and subcontractor's relationship is governed by standard contractual forms. This can result in conflicts and lead to negative outcomes because of power imbalances. From the extant literature, it was identified that research to date has focused on the general contractor's perspective with limited focus on subcontractor challenges, which demonstrates a gap in the body of knowledge. Therefore, the study aims to define the attributes of power and dependence in the general contractor and subcontractor relationship from the subcontractor's viewpoint. A questionnaire survey was developed to explore the subcontractor's perspective, and 212 responses from subcontractors based in Australia were found suitable for analysis. Partial least-squares structural equation modeling based on effect size (ES) was used for hypothesis testing. It was identified that clarity of procurement decisions (ES=0.340), market structure (ES=0.194), and market competition (ES=0.180), were the antecedents of power. Furthermore, it was also validated that commercial importance (ES=0.339) and market reputation (ES=0.241) are antecedents of dependence. The study defines the attributes of power and dependence and provides guidelines for practitioners to use in the creation of partnerships.