Subcontractor trust issues on payment and valuation practices in UK private projects

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.

Citation

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, Vol. 28 No. 1, pp. 64-90. https://doi.org/10.1108/JFMPC-07-2021-0048