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Article
Publication date: 4 October 2022

Shumank Deep, Thayaparan Gajendran, Marcus Jefferies, Venkata Suresh Uggina and Sanjay Patil

Research on strategic procurement was mostly focussed on the clients' and main contractors' perspectives, while limited work had been done from a subcontractor's perspective. The…

Abstract

Purpose

Research on strategic procurement was mostly focussed on the clients' and main contractors' perspectives, while limited work had been done from a subcontractor's perspective. The paper hypothesises that “strategic capability” influences the latent constructs of power, dependence and collaboration in the main contractor–subcontractor relationship. Therefore, the purpose of this study is to investigate the influence of a subcontractor's strategic capabilities on power, dependence and collaboration.

Design/methodology/approach

A survey questionnaire was developed and distributed amongst the subcontractors in Australia, and 212 complete responses were received. Then second order confirmatory factor analysis and partial least square structure equation modelling (PLS-SEM) analysis were performed to test the hypothesised relationships.

Findings

The findings support “strategic capabilities” as a construct expressive of a subcontractor's unique market position and good business reputation. The findings also suggest that strategically capable subcontractors enhance their potential for forming partnerships with main contractors through dependence (StratC. → Dep., β = 0.84; Effect Size (ES) = 0.713; p < 0.01), collaboration (StratC. → Collab., β = 0.84; ES = 0.697; p < 0.01) and bargaining power (StratC. → Pow., β = 0.83; ES = 0.672; p < 0.01).

Originality/value

The study is one of its kind to explore the impact of a subcontractor's strategic capability on their bargaining power, dependability and ability to form collaborations. Furthermore, results indicate that the “strategic capabilities” of subcontractors can strongly influence their ability to create “dependence”, foster “collaboration” and exert “power” over a main contractor. The findings can help improve the strategic procurement decision-making processes of both subcontractors and main contractors to build better business relationships.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 6 November 2017

Adekunle Sabitu Oyegoke and Naseer Al Kiyumi

Project delay is becoming a problem in the Sultanate of Oman as evidenced by many delayed projects across the country. The purpose of this study is to examine causes and effects…

1223

Abstract

Purpose

Project delay is becoming a problem in the Sultanate of Oman as evidenced by many delayed projects across the country. The purpose of this study is to examine causes and effects of delays in megaprojects in the Sultanate of Oman with recommendations to mitigate same.

Design/methodology/approach

A systematic review of literature identifies through main stakeholders the numerous causes, impacts and methods of mitigating delay from previous studies. A questionnaire survey on Oman was carried out to sample opinions from the practitioners; 53 questionnaires were received and analysed using the relative importance index (RII) method.

Findings

The five most frequent causes of delay in the Sultanate of Oman, in rank order, are: selection of the lowest bid, instead of best bid for the client (RII: 0.698); the financial condition of the main contractor (RII: 0.664); delay in decision-making by the client (RII: 0.656); and poor construction planning by the main contractor (RII: 0.649). Also, the findings indicate that extra cost (RII: 0.754) and project time overrun (RII: 0.724) are the most significant effects of the delay in the Oman megaprojects. The use of experienced contractors and consultant (RII 0.675), efficient construction planning by the main contractor and effective site management and supervision (RII: 0.667) are essential mitigation methods of construction delay in Oman megaprojects.

Originality/value

The study recommends three-part novel solutions to mitigate delay in the Oman construction industry.

Details

Journal of Financial Management of Property and Construction, vol. 22 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 1 January 1996

JASON MATTHEWS, ALAN TYLER and ANTONY THORPE

The use of subcontracting within the modern construction industry has become commonplace with many main contractors only undertaking the management and co‐ordination activities…

1285

Abstract

The use of subcontracting within the modern construction industry has become commonplace with many main contractors only undertaking the management and co‐ordination activities. The reliance on subcontractors has put much stress on the subcontractor — main contractor relationship. As main contractors have realized that the greatest potential for cost saving lies with subcontractors, the prevalence of unfair contract conditions, dutch auctioning and other onerous practices has increased. This paper describes a procurement approach, utilizing limited competition, developed by a top UK main contractors (MC) in order to improve its relationships with subcontractors. The approach, termed semi‐project partnering, was implemented on a commercial development. The approach was supported by research which identified: what MC's employees want from subcontractors; what subcontractors want from main contractors; and a study to benchmark MC's performance with that of other main contractors. It was concluded that this approach offers a number of benefits for the client, main contractor, partnering subcontractors and professional consultants. These included an improved team approach; an improved understanding of the project; more compliant subcontractor bids; better/closer relationships; more reliable programming; less confrontation; and lower tendering costs. It was also identified through debriefing subcontractors that sub‐contractors were quoting a10% lower than normal due to this approach.

Details

Engineering, Construction and Architectural Management, vol. 3 no. 1/2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 February 1994

Low Sui Pheng and Goh Kok Hwa

Although quality assurance (QA) was introduced more than a decade ago inthe UK, the implementation of QA systems in the Singapore constructionindustry is still a relatively new…

2429

Abstract

Although quality assurance (QA) was introduced more than a decade ago in the UK, the implementation of QA systems in the Singapore construction industry is still a relatively new phenomenon. While QA is now slowly making its presence felt in the Singapore construction industry over the past two years, there has been a lack of study of the problems faced by practitioners in implementing QA for building projects at its infancy stage in the industry. Examines the problems faced during this infancy stage and draws lessons therefrom.

Details

International Journal of Quality & Reliability Management, vol. 11 no. 1
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 13 April 2012

Adnan Enshassi, Faisal Arain and Bassam Tayeh

Subcontractors play a significant role in the Palestinian construction industry as about 90 per cent of the work is performed by subcontractors. The main objective of this paper…

1791

Abstract

Purpose

Subcontractors play a significant role in the Palestinian construction industry as about 90 per cent of the work is performed by subcontractors. The main objective of this paper is to identify and analyse the major problems which exist between the contractors and subcontractors in the construction industry in the Gaza Strip.

Design/methodology/approach

A questionnaire was designed to elicit contractors' and subcontractors' viewpoints regarding the most important causes of problems that affect the relationship between them. A total of 53 problems were identified based on a literature review, a pilot study was considered in this study and was listed under five groups. A total of 150 questionnaires were randomly sent to contractors and subcontractors. The respondents had extensive experience in the construction industry with average working experience of 20 years. The questionnaire was validated by the criterion‐related reliability test that measures the correlation coefficients between the factors selected for in each group and for all groups as one entity, and structure validity test (Spearman test).

Findings

The result of the survey indicated that, assigning part of the works to new subcontractor without informing the original subcontractor, contractor's financial problems, delay in contract progress payments, non‐adherence to the conditions of the contract, non‐adherence of the subcontractor to the time schedule, and lack of construction quality work were the most important causes of interface problems, while involvement in several projects with the contractor at the same time, weather conditions, and geological problems on site were considered as trivial causes of potential interface problems. Spearman's rank correlation tests showed that there are no differences in the viewpoints between contractors and subcontractors.

Originality/value

The research findings might assist practitioners to focus on major problems which have existed between the contractors and subcontractors in the construction industry in their present and future projects. By eliminating or minimizing these problems, subcontractors are encouraged to contribute significantly to the capital risk, resources, managerial effort, and business expertise supporting the largest industry in Palestine. The paper would be valuable for all academics and industry professionals involved in construction business in general.

Details

Journal of Financial Management of Property and Construction, vol. 17 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 11 March 2022

Temitope Seun Omotayo, Oskar Danvers-Watson and Adekunle Sabitu Oyegoke

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…

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.

Details

Journal of Financial Management of Property and Construction , vol. 28 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 3 May 2016

Rafaella Broft, Sulafa M Badi and Stephen Pryke

Several studies have underlined the potential of supply chain management (SCM) in meeting the formidable challenges associated with fragmentation, adversarial relationships and…

1467

Abstract

Purpose

Several studies have underlined the potential of supply chain management (SCM) in meeting the formidable challenges associated with fragmentation, adversarial relationships and insufficient customer focus in the delivery of construction projects. However, properly documented examples of successfully implemented SCM initiatives, particularly at the lower tiers of the supply chain, are scarce. The purpose of this paper is to extend the existing debates by adopting an alternative approach focusing specifically on the internal SCM organisation of both main contractor and subcontractor organisations, and their direct inter-relationships.

Design/methodology/approach

This study sets out to explore the enablers and barriers to the implementation of SCM at the lower tiers of the construction supply chain, particularly the problematic collaboration between main contractors and subcontractors. SC maturity levels are formulated according to relevant SCM concepts and based on Holti et al.’s (2000) seven principles of SCM organisation, and transformed into a conceptual model. An explorative study is conducted based on interviews from eight large main contractor and subcontractor organisations in the Dutch construction industry.

Findings

Discouragingly, across the organisations, more barriers than enablers to SCM are identified. Organisations are found to be particularly struggling to compete through superior value, manage costs collaboratively, and develop continuous improvement within their supply chains. The findings also underline the low SC maturity of main contractors and their inability to play the essential role of supply chain managers.

Practical implications

The study underlines the need for a greater degree of main contractor leadership and improved internal organisation of both types of firms in order to achieve greater collaboration at the lower tiers of the construction supply chain.

Originality/value

The study contributes to the subject of SCM in construction in two respects. First, the findings should prove valuable to both policy-makers and industry practitioners interested in the delivery of performance improvement in construction. Second, the developed SC maturity model can form the conceptual basis for the development of an applicable improvement framework towards successful SCM implementation.

Details

Built Environment Project and Asset Management, vol. 6 no. 2
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 18 September 2023

Mohammad Mayouf and Ciaran Gilligan

In construction projects, underpayments can be recognised as one of the significant drawbacks that impact the success of a project. Research into underpayments is considered…

Abstract

Purpose

In construction projects, underpayments can be recognised as one of the significant drawbacks that impact the success of a project. Research into underpayments is considered ambiguous and provides a limited reflection of the issue, which makes it complicated to trace how it originates in the first place. This study aims to examine the causes that lead to underpayments and develop a holistic synthesis of underpayments for subcontractors in the lifecycle of a construction project.

Design/methodology/approach

An open-ended and closed-ended questionnaire was used to collect the data using purposeful sampling with 28 construction stakeholders who ranged from main contractors, subcontractors and others (Small medium enterprises SMEs, Consultancies, Clients etc.). Data collected was analysed to trace drivers and the impact of underpayment and suggested mitigation strategies to be identified whilst viewing the perspectives of a main contractor and subcontractor.

Findings

The findings show that the most prominent driver for underpayments is variation disputes followed by cash flow. The research also suggests mitigation strategies such as collaborative working, more robust budget control and early identification of risks as potential remedies to overcome the underpayment issue. The research concludes with a framework that elicits the complexity underlying underpayments for subcontractors in construction projects.

Originality/value

The research evolves the understanding that underpayment is a complex phenomenon, relying heavily on the data/information exchange mechanism between the main contractor and subcontractors. This research provokes the need to understand underpayment further so it can be mitigated.

Details

Journal of Financial Management of Property and Construction , vol. 29 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 12 June 2017

Malena Ingemansson Havenvid, Elsebeth Holmen, Åse Linné and Ann-Charlott Pedersen

The purpose of this paper is to investigate the relationship continuity across projects among actors in the construction industry, and to discuss why and how such continuity takes…

1245

Abstract

Purpose

The purpose of this paper is to investigate the relationship continuity across projects among actors in the construction industry, and to discuss why and how such continuity takes place.

Design/methodology/approach

The authors draw on the results from four in-depth case studies illustrating different strategies for pursuing relationship continuity. The results are analysed and discussed in light of the oft-mentioned strategies suggested by Mintzberg (1987): emergent, deliberate and deliberately emergent strategies. Furthermore, the ARA-model is used to discuss why the relationship continuity strategies are pursued, and which factors might enable and constrain the relationship continuity.

Findings

The main findings are twofold. First, the authors found that the strategy applied for pursuing relationship continuity may, in one-time period, contain one type of strategy or a mix of strategy types. Second, the type of strategy may evolve over time, from one type of strategy being more pronounced in one period, to other strategies being more pronounced in later periods. The strategies applied by construction firms and their counterparts can thus contain elements of emergent, deliberate and deliberately emergent strategies, in varying degrees over time. It is also shown that the strategies of the involved actors co-evolve as a result of interaction. Also, the main reasons for pursuing continuity appear to lie in the re-use and development of important resources and activities across projects to create efficiency and the possibility to develop mutual orientation, commitment and trust over time, and thus reduce uncertainty.

Research limitations/implications

Further empirical studies are needed to support the findings. For managers, the main implication is that relationship continuity can arise as part of an emerging interaction pattern between firms or as part of a planned strategy, but that elements of both might be needed to sustain it.

Originality/value

The authors combine Mintzberg’s strategy concepts with the ARA-model to bring new light to the widely debated issue of discontinuity and fragmentation in the construction industry.

Details

IMP Journal, vol. 11 no. 2
Type: Research Article
ISSN: 2059-1403

Keywords

Article
Publication date: 16 January 2017

Sami Kärnä and Juha-Matti Junnonen

In a construction project, “participants’ satisfaction” is one of the main dimensions used for measuring the successfulness of a project. Designers perform a major role in…

2937

Abstract

Purpose

In a construction project, “participants’ satisfaction” is one of the main dimensions used for measuring the successfulness of a project. Designers perform a major role in attaining the project goals and managing project complexity during production. The purpose of this paper is to examine the designers’ performance as evaluated by the main participants: the client, the project consultant/manager and the main contractor, and to identify the main success factors of designer performance using the participants’ evaluation. The study also aims to examine how the economic size of a project affects the project participants’ assessment of the designer’s performance. It is assumed that as the size of a project increases, so does the complexity of the project, which will affect the scope of work and demands on the designers’ operational performance for the specific project level.

Design/methodology/approach

The Finnish project evaluation and benchmark database was used in this study as empirical data. The quantitative data consists of surveys on the project level and are based on a multi-dimensional standard evaluation wherein the main participants evaluate each other’s performances. The client, project consultant and main contractor evaluated the designer’s performance. The data of the study consisted of a total of 892 evaluations. ANOVA analysis was used to examine the differences between the project participants’ assessments based upon the different economic sizes of the projects.

Findings

Contractors were satisfied with the designers’ performance in small projects, whereas the client and the project consultant/manager rated the designers’ performance most successful in large projects. This result may be due to small projects are typically simple and less complex, in which case design solutions are generally well-defined. Nonetheless, the participants’ level of satisfaction follows the same factors. The main problems in the designers’ performance were related to the design content: the flawlessness and comprehensiveness, as well as the compatibility and consistency of designs. These factors were emphasized particularly in the client’s low satisfaction of the designer’s performance. However, project participants were satisfied with the collaboration with designers; however, room for improvement could be found in internal communication and collaboration within the design teams. The findings illustrated that the assessment of the success rate of a project was party-specific, which was clearly affected by the size of the project, as large projects appeared to be more complex than smaller ones.

Practical implications

The findings suggested that there is a need to develop project-specific practices in managing multidisciplinary design teams. Additionally, particularly in large projects, designers should focus more on solving problems and design requirements occurring at the construction site. However, this should be implemented in such a way that this does not interfere with the design activities conducted with the client and project management. While client satisfaction is low in the small projects, designers should focus more on customer-oriented methods to serve client needs better.

Originality/value

In construction project management studies, there is a need to measure the importance that various participants assign to different success factors. Since project success factors depend on project type, a more project-specific approach is suggested to identify the main parameters for measuring project success. This study provides a holistic approach of the designers’ performance, which contributes to the theory of project success and designers’ performance improvement.

Details

Engineering, Construction and Architectural Management, vol. 24 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

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