Abstract
This study intended to examine the influence subcontractor risk management has on the quality performance of building construction projects. Using a quantitative research method, five hypothesised constructs were tested. The views of 139 Heads of Works for Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana were elicited using a structured questionnaire. A confirmatory factor analysis (CFA) based on structural equation model (SEM) was adopted in analysing the data obtained. The findings suggest that the management of four (financial risks, resource risks, technical risks and managerial risks) out of the five categories of risks positively influenced the quality performance of building construction projects. Relationship risks showed no significant influence on construction quality performance. The study showed quantitatively the effects of sub-contractor risks on quality performance. It provides a vivid relationship between the concept of sub-contracting and quality performance. Therefore, failure to properly manage risks sourced from sub-contractors on a building construction project will have a major adverse consequence on the quality performance of the project. This study further advances efforts at understanding the link between sub-contractor management and project performance with a particular focus on the management of risks emanating from the use of subcontractors on building projects.
Highlights
The building construction industry is known to be a hub of traders from different specialisations
The research is based on the deductive approach as it involves the collection of quantitative data for measurement to confirm variables identified from concepts based on the philosophical position in terms of the underlying relationships of the variable in this study; that is risk management and quality performance
The PLS-structural equation model (SEM) analysis was carried out per the guidelines and sequence suggested by Hair et al (2014) and Sarstedt et al (2016)
Summary
The building construction industry is known to be a hub of traders from different specialisations. Because of the dynamic nature of the industry, which requires the solicitation of innovative technologies and the acquisition of modern techniques to enable products to be delivered, it has become necessary for sub-contractors to be hired (El-Kholy, 2019; Lew et al, 2018). Samuel (2009) indicated that sub-contractors enter contracts to execute portions or parts of contracts. Notwithstanding the benefits associated with subcontracting, Lew et al (2018: 836) cautioned that "extensive subcontracting activities pose risks to general contractors, clients, and their project management teams". Other studies have pointed out other risks associated with subcontracting in the construction industry to include: failure in message delivery between parties during the construction stage (Piasny and Paslawski, 2015), delay in completion date (Chiang, 2009) and safety of on-site workers (Awwad, El-Souki and Jabbour, 2016)
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