International Journal of Civil Engineering and Technology (IJCIET)

Volume 8, Issue 1, January 2017, pp. 363369, Article ID: IJCIET_08_01_041

Available online at http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=8&IType=1
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
IAEME Publication

ISSUES RELATED TO SUBCONTRACTING

PRACTICES IN CONSTRUCTION PROJECTS
K. Kowshik
PG, Student, Department of Civil Engineering,
K L University Vaddeswaram-522502, A.P, India

K. Deepak
Assistant professor, Department of Civil Engineering,
K L University Vaddeswaram-522502, A.P, India

ABSTRACT
Objective: Identifying the most critical issues or conflicts causes between the
contractor and subcontractor which affect the quality, cost, time and productivity of the
construction activities. Methodology: Survey is conducted with the questioner which is
collected from the previous literature and adoptable sources. Data analysis is done through
Questionnaire risk analysis and Analytical Hierarchy Method. Findings: Data analysis is
done by using Analytical Hierarchy Method and results reveal that factor Allocating the
work to the new subcontractor without informing the first subcontractor is ranked in the
first which lead to issues between contractor and subcontractor in perspective of sub-
contractor. Principle contractual worker money related issues is ranked in the second in
perspective of subcontractor. Delay in contract progress installments is rankedin the
third in perspective of subcontractor issues. Lack of construction quality work is ranked
in the first which lead to issues between contractor and subcontractor in perspective of
contractor. Applications: The study recommended several actions to improve the relations
between the contractors and their subcontractors and suggestions to reduce the issues
between both the parties. For example, the contractor should be financially strong so as to
release payments in time to subcontractor. On the other hand, the subcontractor should do
his best to complete the works on time, adhere to all contract terms and conditions and to
keep the best quality of work.
Key words: Sub Contracting, Bidding, Tender, Financial Issues, Contractor, Productivity
Cite this Article: K. Kowshik and K. Deepak, Issues Related To Subcontracting Practices
in Construction Projects. International Journal of Civil Engineering and Technology, 8(1),
2017, pp. 363369.
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 K. Kowshik and K. Deepak

1. INTRODUCTION
Subcontractor's works constitute dominant part of the development exercises and they assume vital
parts to prompt task achievement. Notwithstanding the general temporary worker's aptitudes, bits
of essentially every task will be subcontracted to firms that have particular abilities1. It is
visualized that more authority works will be utilized in cutting edge structures for upgrading
execution and manageability. Subcontracting is a sparing method for getting pro works for present
day structures however it might likewise offer ascent to different sorts of issues2. Such issues may
begin from the attributes of the pro works and from subcontracting as an acquirement technique.
The subcontracting issues inspected join the comfort of portion by the general provisional
specialist, the strategy of selecting the subcontractor, subcontractor holding, improvement
insurance, security on the advancement site, collaborating with various social affairs, and
productivity issues3. Expressed that numerous issues included in subcontracting practice are from
time to time recognized. A writing survey demonstrates that these issues incorporate the
convenience of installments by general contractual workers, the procedure of selecting
subcontractors, subcontractor holding, development protection, security issues on the development
site, cooperating game plans with different gatherings, and efficiency issues. Expressed that
Subcontracting is a typical system in a considerable measure of business areas. It gives more
prominent adaptability to ventures permitting them to spend less in staffing and related expenses
like protection premiums and annuities4. All the more imperatively, the master information. From
distinctive outside gatherings can be joined in the business process through different types of
agreement. In spite of the fact that subcontracting is seen as a powerful and aggressive device to
secure essential abilities for the venture work, the achievement depends intensely on the
determination of suitable subcontractors5-6.

2. METHODOLOGY
2.1 Questionnaire Survey: The questionnaire was chosen to be the method of collecting data in
this research, since the questionnaire is a fast and easy method of collecting data and is more
accurate when starting processing and analyzing these data. A questionnaire survey was conducted
with factors from different aspects which causes the issues between the contractor and
subcontractor and survey conducted with opinions from industrial experience persons and rate the
factor in the scale of 1-5(1=very low impact, 2=low impact, 3=medium impact, 4=high impact, 5=
very high impact.)

2.2. Pilot Study

It is customary practice that the survey instrument should be piloted to measure its validity and
reliability and test the collected data. The pilot study provides a trial run for the questionnaire,
which involves testing the wordings of questions, clarifying ambiguous questions, and testing the
techniques that were used to collect data. Methodology for the work carried out in sequence for the
analysis in detail for the questionnaire was chosen to be the method of collecting data in this
research and analyzing the data. A Detailed methodology is shown in Figure 1.

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 Issues Related To Subcontracting Practices In Construction Projects

Figure 1 Flowchart of detailed methodology

3. DATA PROCESSING AND ANALYSIS

The accumulated crude data was at first sorted, changed and after that went into PC programming.
The system used is, the Excel sheet. Fitting tables were gained to understand and analyze the
request. The ordinal scale was used as a part of the examination procedure. The ordinal scale is
positioning information which typically utilizes numbers as a part of rising or plunging request.
The investigation is done in a blend of two routines:

1. Questionnaire risk analysis

The impact of factors on project performance on a scale of 1 to 5 is obtained from
questionnaire survey and hence risk response is calculated by using the formula as given below:
The impact of factors on project performance on a scale of 1 to 5 is obtained from
questionnaire survey and hence risk response is calculated by using the formula as given below:
Risk response = (Impact of factors causing issues on project performance factors) *
(Probability of occurrence of the factors causing issues)

2. Analytical Hierarchy Method:

This method is used for ranking the factors basing their impact on project performance
factors(Cost, Quality, Safety and productivity, taking 100% weightage for each) is done first.
Then weightage for total project scaling again to 100% is done. The top ten prioritized factors
are considered and recommendation for the same are provided.

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 K. Kowshik and K. Deepak

The example in Table1 and Figure2 as shown , clarifies the weightage calculation and
frequency of occurrence of the factor causing issue.
Table 1 Frequency of occurrence of the factor causing issue

FREQUNCY OF ALL RESPONSES

CODE OF FREQUENCY WEIGHTAGE
FACTORS OF ISSUES FACTORS
CAUSED BY 1 8 32
CONTRACTOR 2 3 12
3 13 52
4 1 4
5 0 0
25 100
SPECIFYING OTHER OPTIONS

Figure 2 Frequency of occurrence of the factor causing issue

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 Issues Related To Subcontracting Practices In Construction Projects

3.1. The Most Critical Components that Causes Clashes/Issues and Interface issues
caused by contractor
Table show stop ten cause conflicts/issues between the contractors and subcontractor to the
perspective of subcontractors.
Allocating the work to the new subcontractor without informing the first subcontractor is
ranked in the first position subcontractors. This emphasizes that, this is the most important factor
leading to interface problems caused by main contractors group, because it results in conflict of
responsibilities and authorities on the site. The obtained results agree with Huang et al (2008) who
emphasized that communication problems might lead to interface problems between contractors
and subcontractors. Principle contractual worker money related issues5 is ranked in the second
and Delay in contract progress installments is ranked in the third The two factors were important
factors leading to interface problems caused by main contractors group, since the financial
problems of the main contractor and delay in payments to the subcontractor will impose financial
difficulties on the subcontractor and make him unable to pay for the workers and suppliers, which
leads to delay in the completing the works on time and with the required quality. Table 2 shows the
most important factors causing issues by contractor.

Table 2Most important factors causing issues by contractor

RANK FACTORS CAUSING ISSUES BY CONTRACTOR

Allocating the work to the new subcontractor,
1
Without informing the first subcontractor
2 Principle contractual worker money related issues
3 Delay in contract progress installments
Delay by the primary contractual worker in not giving
4
the fundamental resources to the subcontractor
5 Delay of the works (behind the time plan)
6 Delays in payment to subcontractors
Deficiency of talented work with the sub-contractual
7
worker
Giving low-quality resources that outcome in
8
substandard workmanship
Deficiency of gifted work with the sub-contractual
9
worker
10 Non-adherence to the states of the agreement

3.2. The most critical components that causes clashes/issues and interface issues
caused by subcontractor
Lack of construction quality work is ranked in the first which lead to issues between contractor
and subcontractor in perspective of contractor. Non-adherence to the states of the agreement4 is
ranked in the second lead to issues between contractor and subcontractor in perspective of
contractor. Selection of subcontractor is ranked in the third lead to issues between contractor and
subcontractor in perspective of contractor. Table 3 shows the most important factors causing issues
by subcontractor.

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 K. Kowshik and K. Deepak

Table 3 Most important factors causing issues by subcontractor.

FACTORS CAUSING ISSUES BY

RANK
SUBCONTRACTOR
1 Lack of construction quality work
2 Non-adherence to the states of the agreement
3 Selection of subcontractor
4 Variations in design/ plans/schedule
5 Frequent equipment breakdown
6 Slow mobilization of equipment
7 Deficiency of gifted work with the sub-contractor
8 Neglecting the safety measures
9 Low labor productivity
10 Lack of proper relationship with the subcontractor

4. CONCLUSION AND RECOMMENDATIONS

4.1. Conclusion
The most important factors that cause issues between the contractors and subcontractor according
to the point of view of contractors and subcontractors are:
Convenience of installments influences numerous subcontractors, for whom getting postponed
installments from their general contractual workers is a reason for grinding between the two
gatherings.
After the award of a contract, general contractors often shop bids because they do not consider bid
shopping as this is an effective way to increase profitability.
A change in shape, introduction of materials, revised timing of scheme creates issue to
subcontractor.
Different conditions represented by the contract documents at the time of bidding, like different
conditions of soil are unknown obstructions which cause disputes among the parties
Issues due to partnering relationships mainly based on trust, respect, and honesty, as well as to
reduce procurement problems, claims, and litigation.

4.2. Recommendations
4.2.1. Recommendations to the Contractors
The main Contractors should give special attention to the following factors
Contractual workers are prescribed to choose the subcontractor as per his previous experience,
notoriety and capacities as far as works, hardware and apparatus,
Since these things guarantee the dedication of the subcontractor to the agreement conditions and
guarantee finishing the works as per the time plan and accomplish the best quality.
Temporary workers are prescribed to administer the subcontractor's chips away at an everyday
schedule and correspond with him ceaselessly so as to tackle any issues, promptly.
Contractual workers are prescribed to issue the monetary installments to the subcontractor on the
due time, subsequent to this guarantees great notoriety of the temporary worker and empower the

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 Issues Related To Subcontracting Practices In Construction Projects

subcontractor to cover his costs, buy the required materials and pay for the works on time, which
brings about finishing the chips away at time immediately.
Temporary workers are prescribed to examine the works with the subcontractor to set the
arrangements and distinguish obligations before beginning the works.
Temporary workers are prescribed to supply tests of the materials and set up the shop-drawings
ahead of schedule for endorsement by the chief.
Temporary workers are prescribed to facilitate among every one of the subcontractors in the venture
with a specific end goal to anticipate planning struggle.
Contractual workers are prescribed to utilize composed contracts that distinguish obligations and
keep the privileges of all gatherings.6

4.2.2. Recommendations to Sub-Contractors

Subcontractors should give special attention to the following factors
Subcontractors are prescribed to utilize adequate number of qualified specialized staff with fitting
background of the venture and to set up every single required material and gear keeping in mind the
end goal to have the capacity to stick to subcontract prerequisites and time.
They are prescribed to propose suitable and sensible costs that guarantee worthy edge of benefit for
them, and after that to stick to their costs in the wake of granting and execute the works without
asking for any progressions of costs.
They are prescribed to set up and keep great notoriety in his association with the primary
contractual worker, so he can be chosen by the temporary worker in numerous future ventures
Also are prescribed to hold fast to quality guidelines through utilizing experienced works, great
materials, supervision of materials and works, actualizing the engineer's directions and doing the
healing works.
They are prescribed to correspond with the contractual worker and the site designs successfully and
actualize their guidelines to keep away from any issues.
They are prescribed not to acknowledge subcontracts from monetarily frail contractual workers who
can't pay for the subcontractors on time.
They are prescribed to utilize the cutting edge procedures for administration of works and materials
and consequently to enhance the efficiency

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[3] Birrell G S. General Contractors Management: How Subs Evaluate It. Journal of Construction
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[4] Caroline T W C. Decision Support for Subcontractor Selection by Probabilistic Neural Network
Model, 2006.
[5] Creed S J E, Seok H Y, Joon H P. Subcontractor Evaluation and Management Framework for
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[6] Brad C P. Construction Subcontracts: an Exercise in Risk Management.
www.precastconsulting.com/Thirdlevel/BradParrot10.pdf. Accessed on 10/03/2012.

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