Establishment of pre-qualification criteria for the selection of subcontractors by the prime constructors for building projects

Abstract

Prime contractors play a vital role in the successful delivery of construction projects. However, the success of the prime contractors depends on the performance of the subcontractors selected for the project. Therefore, inappropriate selection of subcontractors could lead to a claim, delay, cost overrun, litigation, loss of profit, and poor quality. This paper presents the findings of a survey on the prequalification criteria of subcontractors in Malaysia. The research developed a questionnaire instrument that comprised 26 prequalification criteria. The research revealed that 95% of the respondents rated the 26 criteria very important in the selection of subcontractors. The data revealed that 95% of the projects are subcontracted. The research revealed that the five main prequalification criteria are expected completion date, financial capacity/stability of subcontractors, health and safety records, previous performance of subcontractors, and tender price & quotations submitted. The factor analysis structured the 26 criteria into 7 components, which explained 60% of the total variance in the model. A regression model was developed for selecting subcontractors. The findings will be useful to policymakers, construction teams, design teams, and developers. The study provides a platform for prime contractors’ decision-making process and provides guidance to the subcontractors as to whether to tender or not for a project.