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Article
Publication date: 1 March 2001

Current state of IT usage by Australian subcontractors

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…

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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
DOI: https://doi.org/10.1108/14714170110814479
ISSN: 1471-4175

Keywords

  • Construction information technology
  • Subcontractor
  • Communication

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Article
Publication date: 4 November 2020

Developing a continuous improvement perspective for subcontractor involvement in the industrialised housebuilding supply chain

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…

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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. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/SCM-12-2019-0435
ISSN: 1359-8546

Keywords

  • Quality management
  • Supply chain management
  • Construction industry
  • Knowledge management
  • Partnership
  • Productivity management

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Article
Publication date: 18 September 2020

A decision support model for subcontractor selection using a hybrid approach of QFD and AHP-improved grey correlation analysis

Xiaobo Chen, Yanfeng Ding, Clark A. Cory, Yingwen Hu, Kuo-Jui Wu and Xiaoyi Feng

The purpose of this paper is to propose a subcontractor selection model to fully consider the impact of construction enterprise demands on subcontractor selection. The…

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Abstract

Purpose

The purpose of this paper is to propose a subcontractor selection model to fully consider the impact of construction enterprise demands on subcontractor selection. The objectives are to understand the translating process of specific enterprise demands to the evaluating criteria and the weight calculation process.

Design/methodology/approach

A three-stage model of subcontractor selection was designed based on quality function deployment (QFD), analytic hierarchy process (AHP) and improved grey correlation analysis (IGCA). In the proposed model, specific enterprise demands are translated by the QFD method, and the weights of the criteria are determined by the IGCA. The AHP is used to quantify the exporters' experience and construct the judgment matrix, which is used as inputting of the grey correlation analysis.

Findings

The proposed model provides a feasible process for subcontractor selection by fully considering the actual requirements of the project. By combining the company requirements and project requirement to put forward the requirements of the target subcontractor, the selection process ensures that the selected subcontractor and the project have a higher “fit”

Originality/value

Few researches on construction subcontractor selection have taken into account the “voice” of the company's stakeholders. Therefore, this paper designs a three-stage construction subcontractor selection model by introducing QFD to achieve the transmission of “voice” in the subcontractor selection process, so as to take full consideration of the project objectives and the needs of the company's stakeholders. Meanwhile, in order to decrease the subjective of weight calculation, this paper designs an AHP-IGCA allocation method to determine the weight of relevant indicators. By integrating the proposed weight calculation method and QFD method, the subcontractor selection results become more reasonable and objective.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/ECAM-12-2019-0715
ISSN: 0969-9988

Keywords

  • Construction industry
  • Subcontractor selection
  • QFD
  • AHP
  • Grey correlation analysis

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Book part
Publication date: 11 June 2009

Chapter 6 Brand meaning and impact in subcontractor contexts

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…

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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
DOI: https://doi.org/10.1108/S1069-0964(2009)0000015010
ISBN: 978-1-84855-671-3

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Article
Publication date: 28 August 2007

The role of corporate brand image in the selection of new subcontractors

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…

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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
DOI: https://doi.org/10.1108/08858620710780181
ISSN: 0885-8624

Keywords

  • Brands
  • Buying behaviour
  • Corporate image
  • Subcontracting

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Article
Publication date: 1 August 2005

Subcontractors’ liability for project delay

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…

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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
DOI: https://doi.org/10.1108/13664380580001068
ISSN: 1366-4387

Keywords

  • Delay
  • Liability
  • Liquidated damages
  • Subcontracts
  • Bargaining power

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Article
Publication date: 9 January 2007

How do subcontractors evolve?

Andrea Furlan, Roberto Grandinetti and Arnaldo Camuffo

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

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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
DOI: https://doi.org/10.1108/01443570710714547
ISSN: 0144-3577

Keywords

  • Subcontracting
  • Design management
  • Marketing management

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Article
Publication date: 27 July 2012

The likelihood of subcontractor payment: Downstream progression via the owner and contractor

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…

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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
DOI: https://doi.org/10.1108/13664381211246589
ISSN: 1366-4387

Keywords

  • Construction industry
  • Subcontracting
  • Payments
  • Likelihood
  • Markov chains

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Article
Publication date: 10 April 2007

The influence of partnering and procurement on subcontractor involvement and innovation

Per Erik Eriksson, Michael Dickinson and Malik M.A. Khalfan

The aim of this paper is to investigate how a client's cooperative procurement procedures influence subcontractor involvement, value creation, and innovation in the…

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Abstract

Purpose

The aim of this paper is to investigate how a client's cooperative procurement procedures influence subcontractor involvement, value creation, and innovation in the construction of complex facilities.

Design/methodology/approach

Empirical data were collected through interviews, surveys and participation in workshops during a longitudinal action research case study. The case project was located in Sweden and concerned the construction of plant facilities for manufacturing of pharmaceutical products.

Findings

The case study findings reveal that the client's procurement procedures affect the level of subcontractor involvement and integration, but that this does not necessarily result in increased subcontractor value creation and innovation in the construction process.

Research limitations/implications

Since the empirical results are based on data collected from only one case project, the possibilities for generalisations are limited.

Practical implications

Clients' procurement procedures heavily affect subcontractor involvement, but in order to increase subcontractor contributions to innovation and value creation the actors should adopt a long‐term perspective and actively work to establish an innovation‐friendly climate.

Originality/value

This paper focuses on the often‐neglected importance of subcontractors and their contributions to innovation and value creation.

Details

Facilities, vol. 25 no. 5/6
Type: Research Article
DOI: https://doi.org/10.1108/02632770710742174
ISSN: 0263-2772

Keywords

  • Subcontracting
  • Partnership
  • Innovation
  • Procurement
  • Construction operations
  • Sweden

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Article
Publication date: 4 March 2019

Sustainability risk management in a cooperative environment under uncertainty: Iran’s Niayesh tunnel case study

Mojtaba Moradi, Ashkan Hafezalkotob and Vahidreza Ghezavati

This study considers a project scheduling model to assess the project risks and the impacts on project sustainability when subcontractors collaborate under uncertainty…

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Abstract

Purpose

This study considers a project scheduling model to assess the project risks and the impacts on project sustainability when subcontractors collaborate under uncertainty. Moreover, some allocation methods are applied for fair allocating utility of the project and supper-additivity, stability and satisfaction level of each coalition. Finally, sustainability concept is considered in risk assessment in all coalitions.

Design/methodology/approach

The proposed mathematical programming model evaluates project risks when the subcontractors cooperate with each other by sharing their limited resources. Then, some cooperative game theory methods are applied for fair allocation of net present value, of the cooperation and finally sustainability aspects (economic, social and environmental) are investigated in risk assessment for each possible coalition.

Finding

The results of the proposed model indicate that the subcontractors can increase their profit by 10 per cent ($14,028,450 thousand) and save the equilibrium between sustainability aspects especially in grand coalition. It means that subcontractors do not have incentive to leave the coalition and the supper-additive property is feasible. Furthermore, risk assessment shows that project risks have less impact on subcontractor profits when they cooperate with each other.

Originality/value

Sustainability aspects may be investigated in project management in previous studies, but the authors study sustainability indicators when subcontractors form a coalition and share their resources in response to the risks of availability to resources and delay in completing the project under uncertainty.

Details

Kybernetes, vol. 48 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/K-02-2018-0094
ISSN: 0368-492X

Keywords

  • Sustainability
  • Risk management
  • Cooperative game theory methods
  • Project scheduling

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