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Article
Publication date: 1 March 2001

S. Thomas Ng, Swee Eng Chen, Denny McGeorge, Ka‐Chi Lam and Simon Evans

The fragmented and highly competitive nature of the construction industry (CI) limits efficiencies and inhibits communication. However, through the effective use of information…

Abstract

The fragmented and highly competitive nature of the construction industry (CI) limits efficiencies and inhibits communication. However, through the effective use of information technology (IT), these communication barriers between clients, consultants, suppliers, subcontractors and contractors can be broken down. Public sector clients in Australia have proposed an IT implementation strategy with the aim of improving communication and increasing productivity in the CI. However, IT is relatively new to the industry and so are the problems associated with it especially for the small subcontractors. The aims of this paper are to examine the current usage of IT by Australian subcontractors, and to identify the potential problems for subcontractors in IT implementation. The results indicate that the uptake of email and the internet by subcontractors is at a low level and the awareness of IT training and education is very low. The indications are that Australian subcontractors are not yet ready for the implementation of even rudimentary IT technology.

Details

Construction Innovation, vol. 1 no. 1
Type: Research Article
ISSN: 1471-4175

Keywords

Book part
Publication date: 11 June 2009

Anna Blombäck

Brand management in industrial markets is an important subject. The relative youth of this interest implies gaps in the understanding of the phenomenon, though. With regard to the…

Abstract

Brand management in industrial markets is an important subject. The relative youth of this interest implies gaps in the understanding of the phenomenon, though. With regard to the emphasis on brands in today's competitive markets, improving the understanding of brand meaning and impact in diverse industrial situations and organizations is valuable to both management and theory. This paper adds to the expansion of such insights by applying the notion of brands to subcontractors; their market offer and situation. An overview of the brand concept and brand research in industrial markets directs the discussion. The chapter reports on a qualitative study with the aim to support better comprehension of the meaning and impact of brands in a subcontractor context. The study focuses on buyers' decision-making processes. Customers, although they ultimately focus on product price and quality, rely on corporate brand image for making decisions at several stages of purchasing. Buyers normally face a situation where they must choose among a number of potential suppliers, where they perceive uncertainty and limits regarding time and information. In the process of finding and selecting suitable suppliers, subcontractor corporate brands therefore revolve around proxies for expertise and reliability. A focus on subcontractor brand management can render benefits to individual suppliers concerning the amount of potential clients and signed contracts. Also, paying more attention to corporate brand meaning and content can improve the efficiency of matching buyers with supplier.

Details

Business-To-Business Brand Management: Theory, Research and Executivecase Study Exercises
Type: Book
ISBN: 978-1-84855-671-3

Article
Publication date: 19 January 2024

Shaoyan Wu, Mengxiao Liu, Duo Zhao and Tingting Cao

Although trust is generally taken as a fundamental factor in influencing relational behavior in contractor–subcontractor collaboration, the determination of an optimal level of…

Abstract

Purpose

Although trust is generally taken as a fundamental factor in influencing relational behavior in contractor–subcontractor collaboration, the determination of an optimal level of trust is still lacking. Trust with an optimal tipping point that matches dependence best is considered the optimal trust to improve relational behavior between general contractors and subcontractors. To fill the knowledge gap, this study explores how combinations of trust and dependence trigger relational behavior between general contractors and subcontractors through a configurational approach.

Design/methodology/approach

Questionnaires were administered to 228 middle management and technical staff members of the general contractor. The data were analyzed using fuzzy-set qualitative comparative analysis (fsQCA), and the inductive analytic method allowed researchers to explore configurations of different dimensions and levels of dependence and trust.

Findings

Necessity analysis results indicated that neither dependence nor trust was a necessary condition for facilitating relational behavior. Through sufficiency analysis, four configurations of optimal trust matched with dependence were identified in contractor–subcontractor collaboration. Even if contractors rely only on subcontractors for resources, the optimal trust between contractors and subcontractors should include both institution- and cognition-based trust. In the event that contractor–subcontractor collaboration involves relational dependence, both affect- and cognition-based trust are necessary for the optimal trust.

Originality/value

This study enhances existing research by delving deeper into a nuanced understanding of optimal trust in dependence scenarios, and enriches project governance theory by uncovering the internal transmission of relational governance. Practically, this study offers general contractors guidance on how to establish optimal trust strategies based on the dual dependence level with subcontractors, which can facilitate subcontractors' relational behavior, and ultimately improve contractor–subcontractor collaboration performance.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

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: 7 September 2023

Haiyi Zong, Guangbin Wang and Dongping Cao

As the foundation of social and economic development, infrastructure development projects are characterized by large initial investment, high technical requirements and thus…

Abstract

Purpose

As the foundation of social and economic development, infrastructure development projects are characterized by large initial investment, high technical requirements and thus generally delivered through complex contractor–subcontractor collaboration chains. This study aims to characterize the complexity of collaborative networks between contractors and subcontractors for infrastructure development through comparing the structural characteristics and the formation mechanisms of contractor–subcontractor collaborative networks for the following two different types of infrastructure: public works (PWCN) owned and operated by government agencies, and public utilities (PUCN) owned and operated by nongovernment agencies.

Design/methodology/approach

Based on the method of stochastic actor-oriented models and the longitudinal dataset of National Quality Award Projects in China during 2001–2020, this study compares how the structural characteristics of project-based collaborative networks between contractors and subcontractors for the two types of projects are different and how related micro-mechanisms, including both structure-based endogenous network effects and attribute-based exogenous homophily effects (institutional, organizational and geographical homophily), collectively underpin the formation of the networks.

Findings

The empirical results provide evidence that while the two networks are both characterized by relatively low levels of network density, PWCN is more globally connected around a minority of superconnected contractors as compared with PUCN. The results further reveal that compared with PUCN, the formation of PWCN is more significantly related to the structure-based anti in-isolates effect, suggesting that PWCN is more open for new entrant subcontractors. With regard to the attribute-based homophily effects, the results provide evidence that while both significantly and positively related to the effects of organizational (same company group) and geographical homophily (same location), the formation of PWCN and PUCN is oppositely driven by the institutional homophily effect (same ownership type).

Originality/value

As an exploratory effort of using network perspective to investigate the formation mechanisms of contractor–subcontractor relationships in the infrastructure development domain, this study contributes to a network and self-organizing system view of how contractors select subcontractors in different types of infrastructure projects. The study also provides insights into how contractor–subcontractor collaborative relationships can be better manipulated to promote the development of complex infrastructure in different contexts.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 28 August 2007

Anna Blombäck and Björn Axelsson

Despite the increased focus on brands in B2B markets, little research to date has focused on understanding the role brands play in different B2B contexts. To make a contribution…

5693

Abstract

Purpose

Despite the increased focus on brands in B2B markets, little research to date has focused on understanding the role brands play in different B2B contexts. To make a contribution in this area, the article aims to investigate whether, why and how corporate brand image plays a role in the selection of new subcontractors. This category of firms is particularly challenging to explore from a branding perspective, as their market offering is defined and designed by their customer and, further, not recognized by the customer's customer.

Design/methodology/approach

A qualitative interview study with respondents from nine companies (three subcontractors and six of their customers) was conducted. The interviews were semi‐structured and focused on considerations made by both buyers and sellers in sales and purchasing processes.

Findings

The study reveals that corporate brand image can be especially important when buyers need to identify new subcontractors. This process is only partly formalized, and due to limited resources and perceived risk, buyers need to rationalize the selection process. The brand's primary role is to attract interest and provide trust with regard to capacity, on‐time delivery and competence. Explicit communications, utilizing various elements such as plant orderliness, previous clients, the firm's website, etc., help build up the brand.

Originality/value

The paper illustrates that a corporate brand and branding perspective can be fruitfully applied in a subcontractor context. It promotes a deeper understanding of the complexity of decision making in B2B markets. The findings suggest that more conscious and proactive branding efforts could improve a subcontractor's business.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 10 November 2020

Wolfgang Grenzfurtner and Manfred Gronalt

This paper aims to identify those factors, which will improve the collaboration between industrialised housebuilding (IHB) companies and their subcontractors within continuous…

Abstract

Purpose

This paper aims to identify those factors, which will improve the collaboration between industrialised housebuilding (IHB) companies and their subcontractors within continuous improvement (CI) programmes. These factors will enhance the supply chain (SC) efficiency and productivity, eliminating obstacles when designing, implementing and managing CI programmes within IHB SC.

Design/methodology/approach

An explorative case study with a mixed-method approach was conducted within an IHB SC. To collect data, participant observation and guided interviews were applied. A stakeholder analysis was conducted to structure their guiding principles. A causal loop diagram (CLD) analysis was used to model the effects on and relationships within a SC and their impact on the involvement of subcontractors.

Findings

The influences on the stakeholders and the guidelines under which they work are defined. Potential conflicts of interest between stakeholders are identified. A CLD is used to model a better understanding of system behaviour impacting on the relationships within the SC and on subcontractor involvement. The results provide a number of factors that need to be considered when designing, implementing and managing a CI programme.

Research limitations/implications

The research suggests better ways to use subcontractors’ specific knowledge of on-site processes such that productivity and efficiency are enhanced. Improvements within the construction supply chain (CSC) will, in the future, not be limited to small improvement gains at company level.

Originality/value

This paper extends the body of knowledge in CSC management by revealing factors important for designing, implementing and managing CI programmes, which enables the successful involvement of subcontractors in CI on SC level.

Details

Supply Chain Management: An International Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 August 2005

David Greenwood, Keith Hogg and Stanley Kan

The normal way of dealing with damages for delay in a construction contract is to use a Liquidated and Ascertained Damages clause. Such clauses specify a preset sum to be due to…

1226

Abstract

The normal way of dealing with damages for delay in a construction contract is to use a Liquidated and Ascertained Damages clause. Such clauses specify a preset sum to be due to the client for every day, week or month by which the contractor fails to meet the works completion date. However, the greater part of the value of construction work is actually carried out by subcontractors, and there is little or no published evidence as to how their contractual responsibilities for delays are determined and pursued. Theoretically, there are a number of possibilities (none of which is entirely satisfactory to both parties) and the logic and implications of each is discussed. A survey was conducted to discover the methods that are actually used, their incidence, and whether it was possible to relate the different approaches to the attributes of particular subcontractors or to specific situations. The most commonly encountered approach was for subcontract damages to be based upon a proportion of those set under the main contract. Interestingly, this is neither the approach incorporated within industry‐standard subcontract conditions, nor is it the one preferred by subcontractors. Furthermore, this method places considerable risks on the main contractor due to the possibilities of under‐recovery and the creation of secondary risks. This method, indeed all the methods that were encountered, seems to be the result of a rather uneasy compromise between the parties, the outcome of which may be related to their relative bargaining power.

Details

Journal of Financial Management of Property and Construction, vol. 10 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 9 January 2007

Andrea Furlan, Roberto Grandinetti and Arnaldo Camuffo

The purpose of this study is to investigate how small and medium sized subcontracting firms evolve.

2538

Abstract

Purpose

The purpose of this study is to investigate how small and medium sized subcontracting firms evolve.

Design/methodology/approach

A cluster analysis was applied to a sample of 417 North East Italian subcontractors to explore if (and to what extent) Italian subcontractors differ and can be classified on the basis of their design and marketing capabilities. Using this classification as a starting point, multiple case study analysis is conducted on a sample of ten subcontractors and a model developed of how subcontractors' capabilities evolve over time.

Findings

Four profiles of subcontractors are identified as a function of their design and marketing capabilities: developed, developing, question mark and traditional. A model is proposed to understand and predict subcontractors' evolution. In the model knowledge codification, supply management, design and marketing capabilities mutually reinforce one another and tend to align over time.

Research limitations/implications

Firstly, future research should articulate the four clusters identified. Secondly, the framework for subcontractors' evolution should be tested on large‐scale databases. Thirdly, more accurate measures of subcontractors' capabilities should be conceived and tested.

Practical implications

Results of this study are critical for industrial buyers who need to segment their subcontractors and understand how their marketing and design capabilities evolve. Moreover, they are also critical for subcontractors' managers who wish to avoid cost‐based strategies, enlarge their customer base, broaden their international scope and engage in durable relationships with their customers.

Originality/value

This study proposes an original model of subcontractors' classification and evolution and suggests good practices to design and manage supply networks.

Details

International Journal of Operations & Production Management, vol. 27 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 27 July 2012

Hanh Tran and David G. Carmichael

Subcontractor payments typically come through the contractor, though there can be exceptions to this, and their timing and quantum can be affected by the upstream payment…

1205

Abstract

Purpose

Subcontractor payments typically come through the contractor, though there can be exceptions to this, and their timing and quantum can be affected by the upstream payment practices of the owner to the contractor, as well as the payment practices of the contractor. The purpose of this paper is to study the linked effect of late and incomplete payments of both the owner and contractor on what the subcontractor receives.

Design/methodology/approach

The paper's analysis develops on an existing Markov chain formulation of owner payments. The probability of getting payment from an owner or contractor is represented as a function of time since claim submission. Such functions are established through goodness of fit tests using actual project data. The downstream progression of payment from owner to contractor to subcontractor is treated as a collection of series and parallel systems, for which the likelihood of payment is assessed.

Findings

A model that enables subcontractors to calculate the likelihood of getting their claims paid, based on owner and contractor historical payment practices, is developed. Subcontractors are able to calculate the conditional and unconditional probabilities of their claims being paid at any time after claim submission. The model may be used with historical payment records, or with identified typical owner and contractor payment types.

Practical implications

The paper presents a practical method by which a subcontractor is able to calculate age‐dependent probabilities of outstanding claim amounts being paid. Such information feeds into the subcontractor's tendering practices before entering a new project, and in the subcontractor's contract administration practices in terms of pursuing claims.

Originality/value

The modelling of the owner‐contractor‐subcontractor payment linkage is original. No similar modelling exists in the literature.

Details

Journal of Financial Management of Property and Construction, vol. 17 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

1 – 10 of over 5000