Delineating the predominant criteria for subcontractor appraisal and their latent relationships

Ng, S T and Tang, Z (2008) Delineating the predominant criteria for subcontractor appraisal and their latent relationships. Construction Management and Economics, 26(3), pp. 249-259. ISSN 1466433X

Abstract

An industry report in Hong Kong calls for an agreed framework for appraising subcontractor performance. A set of performance appraisal criteria is developed that is agreeable to all key stakeholders in subcontracting. By examining the criteria being applied around the world and reviewing the available literature, a set of 31 subcontractor performance appraisal criteria was compiled. A questionnaire survey was conducted in Hong Kong to reveal the perception of relevant stakeholders on the most critical criteria for subcontractor appraisal. The independent samples t-test confirmed that the main contractor and subcontractor groups had a significant agreement on the importance levels of most subcontractor performance appraisal criteria. Through factor analysis, the 15 most important subcontractor performance appraisal criteria and their underlying relationships are identified. The results indicate that the three overarching factors for subcontractor performance appraisal are 'team interaction', 'accomplishment of project goals' and 'track record'. The identified appraisal criteria lay a solid foundation for the development of a centralized subcontractor performance appraisal system to facilitate performance reporting, data sharing and benchmarking.

Item Type: Article
Uncontrolled Keywords: decision criteria; factor analysis; performance appraisal; subcontractor
Index terms: appraisal, benchmarking, subcontractor, questionnaire, survey, interaction, factor analysis, decision criteria, subcontracting, main contractor, Hong Kong
Subjects: performance measurement, factor and component analysis, Geography, decision analysis, behavioral psychology, statistical analysis, data collection methods, organization, practitioner
Topics: Supply Chain Management, Quality Management, Roles and Professions, Risk Management, Geographical Context, Research Practice
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