Conceptual framework for the assessment of subcontractors' eligibility and performance in the construction industry

Mbachu, J (2008) Conceptual framework for the assessment of subcontractors' eligibility and performance in the construction industry. Construction Management and Economics, 26(5), pp. 471-484. ISSN 1466433X

Abstract

Subcontractors handle a major portion - about 85% - of all construction projects in the building industry. The ability of the main contractor and consultants to deliver the project within time, quality and cost targets depends largely on the performance of the subcontractors. Selection of subcontractors on the basis of overall ability to perform is therefore crucial to successful project delivery. The key criteria for assessing subcontractors' eligibility for tender invitation and award, and subsequent performance at the construction stage, were investigated. Using the descriptive survey method, 243 contractors and 307 subcontractors registered with the Gauteng Master Builders Association of South Africa were surveyed. The multi-attribute technique was used to analyse the data. Results showed that quality record is the most influential criterion for selecting high performing subcontractors at the pre-qualification stage, and for assessing their performance at the construction stage. Tender price exerts the most significant influence in the subcontract award. A framework was developed for use by main contractors and consultants in the assessment of the suitability and performance of subcontractors. Application of the framework to a case study demonstrated its merit as a tool for ensuring that only high performing subcontractors are selected for subcontract jobs.

Item Type: Article
Uncontrolled Keywords: performance evaluation; pre-qualification; selection; subcontracting; tendering
Index terms: case study, main contractor, subcontracting, eligibility, building industry, pre-qualification, project delivery, construction industry, subcontract, survey, builder, tender price, construction project, subcontractor, performance evaluation, conceptual framework, suitability, South Africa
Subjects: practitioner, contract type, organization, data collection methods, project delivery, employment law, production management, Geography, tendering, theoretical framing, performance measurement, design criteria, industry analysis
Topics: Project Management, Geographical Context, Research Practice, Roles and Professions, Procurement, Legal Issues, Design Practice, Quality Management, Supply Chain Management, Contract Administration
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