Engineering contract of construction industry (Subcontract) in Libya

Abstract

There is an ever-growing body of literature related to construction contracts, administration, claims and disputes. Much of this is contextualized from the owner-general-contractor relationship perspective. Despite the prevalent engagement of subcontracting, approximately 80% of the work is done by subcontractors; the treatment of distinctively sub-contractual issues in such literature is relatively limited. Any special focus on subcontracts is often written with, "us against them" overtones, emphasizing the perspective of either the subcontractor or the general contractor. The hypothesis of this research centered upon Subcontracting being essential and necessary in the construction sector irrespective of building project complexity, and subcontracting is exposed to substantial risks, therefore, it being imperative to understand means and methods of regulation of subcontractor selecting to limit risk. Publications from a variety of research and sources were reviewed concerning the subcontractor's role, procedures, types, and relationships, administration of subcontractors and subcontracting work and risks in selecting subcontractors. Subsequently, what is presented in the findings is the necessity of subcontractor selection and its impact on the cost, duration and quality of construction projects and the associated risks of subcontracting. A comparative aspect is presented evaluating the Libyan Contractual Conditions relative to Subcontracting Work and the shortage in the items that concern the subcontracting work. Furthermore, the research has also sought to identify and provide the main contractor with an effective instrument of selecting his subcontractors.