Subcontractor Selection Research Articles

Subcontractor Prequalification Practices in Palestine

The construction industry is a major part of the Palestinian economy. Contracting companies carry out important construction projects in cooperation with subcontractors. The majority of elements of a construction project (such as shuttering, building, plastering, painting, carpentry, and ironmongery works) are implemented by subcontractors through the main contractors. The aim of this paper is to identify and rank the factors used by main contractors in the selection of suitable subcontractors in the Gaza Strip, and to propose recommendations for improving the selection of subcontractors. A survey was conducted of 57 main contractors and 57 subcontractors randomly selected from the Gaza Strip. The study revealed the important factors used by main contractors for selection of suitable subcontractors. These include adherence of the subcontractor to contract terms, adherence to time schedule, commitment to prices, good reputation, expertise in certain type of work, commitment to quality and the existence of required equipment and machinery. Factors related to the resources group were identified as the most important group of factors among the 16 groups used for the selection of subcontractors. It is recommended that contractors select the subcontractor according to previous experience, reputation and capabilities in terms of labour, equipment and machinery, since these items ensure the subcontractor’s commitment to contract conditions and completing the works according to the time schedule and while achieving best quality. This paper would be valuable for all academics and professionals involved in construction contracting business in general.

Cost‐effectiveness of construction safety programme elements

Every year the construction industry accounts for a disproportionate injury rate when compared to the all‐industry average. In recent years, incident rates have declined as a result of improvements in safety management. While there is a great deal of knowledge regarding the safety management strategies of highly effective construction firms, little is known about the cost‐effectiveness of these strategies. Interviews with 26 representatives of construction firms headquartered in the US were undertaken to quantify the cost of implementing common safety programme elements by: (1) quantifying cost for each element per US$1 million of project scope; and (2) determining the distribution of safety funding to each element. Using these cost data and effectiveness ratings from previous research, the cost‐effectiveness of 13 safety programme elements was quantified. The results indicate that the most cost‐effective safety programme elements are subcontractor selection and management and upper management support and commitment. Alternatively, the least cost‐effective elements are the employment of a full‐time safety manager and record‐keeping. The information presented in this paper may be used by practitioners to direct resource investments, strategically select a subset of safety programme elements when resources are limited, and to justify additional resource investment in accident prevention.

Relative Importance of Subcontractor Selection Criteria: Evidence from Singapore

Subcontractors carry out a large portion of the work done in construction projects. Thus, selecting the right subcontractor essentially contributes to the project’s success. We designed a choice-based conjoint experiment to examine the relative importance of four criteria in the subcontractor selection process of main contractors from Singapore: price, technical know-how, quality, and cooperation. Although main contractors adopt a multicriteria selection process and perceive all four criteria to be important for their choice decision, the actual choice situation reveals that price is still by far the most important selection criterion, followed by quality, cooperation, and technical know-how. Main contractors are not willing to compromise on price but accept a lower performance of a known subcontractor on the remaining criteria.

Construction Safety Risk Mitigation

Construction safety and health management has improved significantly following the Occupational Safety and Health Act of 1970. In response to this legislation, contractors began implementing safety programs to reduce occupational safety and health hazards on construction sites. Researchers recently found that the current process of selecting specific elements for a safety program is informal. This paper describes the results of a recent study designed to determine the relative effectiveness of safety program elements by quantifying their individual ability to mitigate construction safety and health risks. In order to determine the effectiveness of individual safety program elements, the following research activities were performed: (1) an appropriate safety risk classification system was created using an aggregation of relevant literature; (2) highly effective safety program elements were identified in literature; and (3) the ability of each safety program element to mitigate a portion of each of the safety risk classes was quantified using the Delphi method. The results of the research indicate that the most effective safety program elements are upper management support and commitment and strategic subcontractor selection and management and the least effective elements are recordkeeping and accident analyses and emergency response planning. It is expected that the data presented in this paper can be used to strategically select elements for a safety program, target specific safety and health risks, and influence resource allocation when funds are limited.

Designing and Evaluating Sustainable Supply Chains: A Carbon Market Oriented Approach

Increasing regulatory legislations for carbon and waste management and the focus on corporate social responsibility are driving a major focus on supply chain sustainability. In this research, a goal programming model is proposed to address a supply chain design problem with environmental considerations. Carbon emissions (environmental dimension) and total logistics cost (economic dimension) are considered in order to evaluate the supply chain performance. A crucial contribution of our work is that, together with incorporating regulatory environmental constraints such as emissions “cap” and putting a price tag on carbon emissions, we comprehensively model compliance strategies for the supply chain including suppliers and sub-contractors selection, technology acquisition, and transportation modes configuration. The results obtained show that this approach is a viable decision tool and offer a good framework for designing and evaluating efficient and environmental supply chains.

Partnering the Construction of a Swedish Pharmaceutical Plant: Case Study

In recent years increased interest in cooperative arrangements, such as partnering, has been noticeable in the construction industry in many countries. To facilitate cooperative relationships many aspects of the traditional procurement procedures need to be changed. The research presented in this paper offers an analysis that compares empirically observed partnering procurement procedures with conceptual prescriptions provided by a transaction cost economics framework. The empirical illustration shows that the case client has reduced the focus on price and authority and instead facilitated a relationship based on trust and cooperation, through procurement procedures involving joint specification, limited bid invitation, bid evaluation based on soft parameters, joint selection of subcontractors, standard contracts coupled with relational norms, usage of collaborative tools, and contractor self-control. The procurement procedures chosen result in a governance form rather similar to the one prescribed by the...

Conceptual framework for the assessment of subcontractors' eligibility and performance in the construction industry

Subcontractors handle a major portion—about 85%—of all construction projects in the building industry. The ability of the main contractor and consultants to deliver the project within time, quality and cost targets depends largely on the performance of the subcontractors. Selection of subcontractors on the basis of overall ability to perform is therefore crucial to successful project delivery. The key criteria for assessing subcontractors' eligibility for tender invitation and award, and subsequent performance at the construction stage, were investigated. Using the descriptive survey method, 243 contractors and 307 subcontractors registered with the Gauteng Master Builders Association of South Africa were surveyed. The multi‐attribute technique was used to analyse the data. Results showed that quality record is the most influential criterion for selecting high performing subcontractors at the pre‐qualification stage, and for assessing their performance at the construction stage. Tender price exerts the most significant influence in the subcontract award. A framework was developed for use by main contractors and consultants in the assessment of the suitability and performance of subcontractors. Application of the framework to a case study demonstrated its merit as a tool for ensuring that only high performing subcontractors are selected for subcontract jobs.

Multi-attribute group decision making model under the condition of uncertain information

Owing to the increasing complexity in the construction management, integrating experts' knowledge and experiences to make appropriate decisions is a commonly used method. TOPSIS (technique for order performance by similarity to ideal solution) is a practical and useful technique in dealing with multi-attribute decision making problems, and has been widely employed in the construction management and other fields. The modification and extension of TOPSIS to a group decision environment is investigated in this study. In the proposed group decision making model, we both adopt the Minkowski distance function to solve the over-weighted problem in the original TOPSIS technique, the grey number operations to deal with the problem of uncertain information, and the aggregation approach to integrate experts' evaluations. Finally, an illustrative example of subcontractor selection is used to demonstrate the feasibility and practicability of the proposed model.

Improving sub-contractor selection process in construction projects: Web-based sub-contractor evaluation system (WEBSES)

One of the most important phases in the construction industry (CI) is the bidding process. During the bidding process, selecting the most appropriate sub-contractors (SCs) for the relevant sub-works is highly critical for the overall project performance. In order to select the most appropriate SCs for the project and prepare the most realistic and accurate bid proposal, general contractors (GCs) have to know all financial, technical and general information about these SCs. Within this context, GCs should consider several factors in the selection process. These factors may include the quality of production, efficiency, employment of qualified members, reputation of the company, accessibility to the company, completion of the work on time etc. This paper proposes a web-based sub-contractor evaluation system called WEBSES by which the SCs can be evaluated based on a combined criterion. It enables GCs to select the most appropriate SCs for their relevant sub-works, speed up the selection process and gain time and cost savings during the bidding process.

Dynamic multi-attribute decision making model with grey number evaluations

In practice, multi-period evaluations have to be considered to obtain a reliable decision. Besides, owing to the increasing complexity of decision, the uncertainty of evaluation also increases. Therefore, this study proposes a dynamic decision making model which takes the TOPSIS technique as main structure, integrating the concepts of grey number and Minkowski distance function into it to deal with the uncertain information and aggregate the multi-period evaluations. A subcontractor selection example is adopted to demonstrate the feasibility and practicability of the proposed model. Results show that the proposed model is efficient and robust, and quite good for real-world applications.

On-Site Subcontractor Evaluation Method Based on Lean Principles and Partnering Practices

Subcontracting has greatly increased in the construction industry. It helps shift risk from the main contractor to the subcon- tractor and promotes specialization. Inadequate subcontracting management, however, may result in an adversarial relationship between main contractors and their subcontractors, uncoordinated on-site execution, and disappointing quality and schedule fulfillment. New subcontractor management methods and tools are being developed and tested as part of a collaborative research project led by the Catholic University Production Management Center with the participation of the Chilean Construction Chamber and several construction compa- nies. The experience gained by testing prototype tools and methods on selected projects enabled us to develop an on-site evaluation method based on lean principles and partnering practices. This method allows main contractors to help subcontractors improve their performance by providing them with periodic feedback. It also supports subcontractor selection based on their previous performance, which helps foster collaborative relationships with those that consistently perform well. The results of the application of the method in two case studies are discussed.

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

PurposeDespite 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/approachA 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.FindingsThe 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/valueThe 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.

An Empirical Study in Subcontractor Selection and Long-Term Alliance Relationship between Main-Contractor and Subcontractor

This paper aims to identify the main contractors’ current practice in subcontractor selection and their perception towards the long-term alliance relationship with their subcontractors. Fifteen interviews were conducted with executives of eight main contracting firms in Australia. The research found that the subcontractors were chosen mainly through selective or open tendering using the criteria of “past performance, technical capability, reputation, financial stability, experience on similar work and lowest price”. With regard to long-term relationship, the research found the main motivation is “to achieve organisational competitive advantages”, and the key successful elements include “trusting behaviour, honesty, open communication and top management commitment”, while the proactive strategies to achieve the long-term relationship include “organise regular meetings, provide incentive financial scheme, maintain constant contacts, provide project programming ownership and provide structured and detail documentation”. It is concluded that, with the aim of enhancing organisational competitive advantage, while selective and open tendering are the main means for subcontractor selection, the main contractors understand the importance and key successful elements of long-term relationship with their subcontractors and they have adopted some strategies to develop and maintain the long-term relationships.

Factors Influencing the Selection of Subcontractors in Refurbishment Works

Refurbishment projects differ from new build projects, the former are perceived to be more difficult to manage than new build projects. Subcontractors perform vital roles in these projects; time and cost over-runs, and contractual disputes are common in these projects because of the improper selection of subcontractors. Currently, however, there is a lack of knowledge relating to the selection of subcontractors for building refurbishment projects. There should be a better combination of selection criterion, apart from price. This paper presents the finding of a survey of main contractors in Singapore, which revealed their perceived importance of factors influencing their choice of subcontractors for building refurbishment works. The finding may assist the main contractors to evaluate the existing selection methods.

A branch and bound algorithm for sub-contractor selection in agile manufacturing environment

Partnership and partner selection play a key role for “Opportunity Driven” project contractors in agile manufacturing environment. In this paper, we present an investigation on the partner selection problems with engineering projects. Firstly, the problem is described by a 0–1 integer programming with non-analytical objective function. It is proven that the partner selection problem is a type of earliness and tardiness production planning problems. By introducing the concepts of inefficient and ideal candidates, we propose the theory of solution space reduction which can efficiently reduce the complexity of the problem. Then, a branch and bound algorithm embedded project scheduling is developed to obtain the solution. The approach was demonstrated by the use of an experimental example drawn from a construction project of coal fire power station. The computational results have been found to be satisfactory.

ANALYSIS AND GENERALIZATION OF THEORETICAL POSITIONS ENSURE THE CAPITAL RESTORATION OF ENTERPRISES OF CONSTRUCTION INDUSTRY

The article, with the help highly-efficient flow algorithm and usage of intra-system links, on the basis of direct and dual problems, develops a theoretical substantiation of grounded selection of sub-contractor and timely and efficient renewals of buildings and installations.

REALIZATION OF THE VIRTUAL ENTERPRISE PARADIGM IN THE CLOTHING INDUSTRY THROUGH E‐BUSINESS TECHNOLOGY

This paper presents a methodology and a case study for supply chain management in the clothing industry that makes extensive use of the virtual enterprise paradigm. The main research goal was to design and implement a prototype e‐business software component and carry out tests in several industrial users. The research effort resulted in the extended production data management system (epms), which supported the business processes of customer order management, subcontractor selection, and multi‐site/multi‐firm production orders release. The enablers of this software application were business‐to‐business (b2b) e‐commerce technologies in the operating context of application service providers (asps).

A heuristic genetic algorithm for subcontractor selection in a global manufacturing environment

Presents an investigation of how partner selection problems may be optimized by the use of a precedence network of subprojects. At the start, the problem is described by a model with the subscript type of variables and a non-analytical objective function. It cannot be solved by general mathematical programming methods. By using the fuzzy rule quantification method, a fuzzy logic-based decision-making approach for the project scheduling is proposed. We then develop a fuzzy decision embedded heuristic genetic algorithm (GA/FD) to find the solution for partner selection. The approach was demonstrated by the use of an experimental example drawn from a coal-fired power station construction project. The results show us that the suggested approach can quickly achieve the optimal solution for large-sized problems.

Improved Subcontractor Selection Employing Partnering Principles

Despite the increasing extent of subcontracting in construction, the importance of subcontractor selection is frequently underestimated. While the subcontracting element needs more attention in contractor selection itself, subcontractor selection techniques themselves need considerable improvements. This paper examines how such techniques can beneficially draw from improved multicriteria contractor selection methodologies in general, and specifically from recent developments in client-contractor partnering. It is shown how partnering may be profitably extended further into the supply chain; in other words, into subcontractor selection. A European case study illustrates the development of a subcontractor selection process that incorporated partnering principles. Despite the longer and costlier selection process, it was found that subcontractor pricing levels were reduced by about 10% to account for anticipated efficiencies arising from the proposed partnering. Markedly better time and cost control was achieved on the pilot project. The relationships between all project participants were also found to have improved considerably. Such observations confirm the value of expanding the partnering envelope to encompass subcontractors in general; and more specifically, of assessing the potential for such extended partnering as an integral part of the subcontractor selection process.

A model for subcontractor selection in refurbishment projects

A model is presented for analysing the subcontractor's risk elements in construction refurbishment projects. The system is based on the use of fuzzy set theory with the fuzzy set representing the overall weighted average rating of refurbishment contractors criterion for the selection of subcontractors. A prototype knowledge based expert system is described, which provides a systematic and objective approach to the selection of subcontractors. Knowledge elicitation methodology using the ‘repertory grid’ technique is detailed. The implementation of a subcontractor selection and appointment Model for refurbishment contractors (SSARC) in linguistic terms allows the user to interact with the system in a very friendly manner using natural language expressions.