Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects

Elias Defalgn Debelo; Zerihun Berhane Weldegebriel

doi:doi:10.11648/j.ajce.20221002.11

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Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects

Elias Defalgn Debelo, Zerihun Berhane Weldegebriel

Published in American Journal of Civil Engineering (Volume 10, Issue 2)

Received: 21 February 2022 Accepted: 1 April 2022 Published: 9 April 2022

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Abstract

Because of the common practice of subletting construction work into smaller packages, subcontracting has become an attractive technique in the construction business. Effective subcontractor selection and monitoring reduce the problem while also determining the performance of construction firms. The engagement of a subcontractor in a building construction project results in relationships with the main contractor, which will influence the project's success. The purpose of this study was to look at how main contractors choose subcontractors and to analyze the effect of the main contractor–subcontractor relationship on project performance. This research used a descriptive survey method to look at the underlying characteristics that influence the relationship between the main contractor and subcontractors and their effect on the performance of construction projects. The findings of the study confirmed that most contractor depends on subcontractors for the execution of their work and therefore procurement and management of subcontractors highly affects the performance of the construction project. It was also discovered that the subcontractor often performs 20 percent to 50 percent of the work. Main contractors used subcontractors primarily to offer skilled labor, lower overhead expenses, and relieve work and financial burden on themselves. The major causes of issues between the main contractor and the subcontractor include the main contractor's delay in releasing payments, the subcontractor's shortage of trained personnel, and scheduling conflicts among the subcontractors on a given project. To eliminate antagonistic relationships, the study advises a trust-based cooperative partnership that incorporates subcontractors into a partnering strategy. Furthermore, for optimal construction project performance, simpler and complete subcontract documents would improve the interaction between the main contractor and the subcontractor.

Published in	American Journal of Civil Engineering (Volume 10, Issue 2)
DOI	10.11648/j.ajce.20221002.11
Page(s)	31-42
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Construction Projects, Main Contractors, Sub-contractors, Relationship, Dire Dawa

References

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APA Style

Elias Defalgn Debelo, Zerihun Berhane Weldegebriel. (2022). Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects. American Journal of Civil Engineering, 10(2), 31-42. https://doi.org/10.11648/j.ajce.20221002.11

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Elias Defalgn Debelo; Zerihun Berhane Weldegebriel. Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects. Am. J. Civ. Eng. 2022, 10(2), 31-42. doi: 10.11648/j.ajce.20221002.11

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AMA Style

Elias Defalgn Debelo, Zerihun Berhane Weldegebriel. Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects. Am J Civ Eng. 2022;10(2):31-42. doi: 10.11648/j.ajce.20221002.11

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@article{10.11648/j.ajce.20221002.11,
  author = {Elias Defalgn Debelo and Zerihun Berhane Weldegebriel},
  title = {Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects},
  journal = {American Journal of Civil Engineering},
  volume = {10},
  number = {2},
  pages = {31-42},
  doi = {10.11648/j.ajce.20221002.11},
  url = {https://doi.org/10.11648/j.ajce.20221002.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20221002.11},
  abstract = {Because of the common practice of subletting construction work into smaller packages, subcontracting has become an attractive technique in the construction business. Effective subcontractor selection and monitoring reduce the problem while also determining the performance of construction firms. The engagement of a subcontractor in a building construction project results in relationships with the main contractor, which will influence the project's success. The purpose of this study was to look at how main contractors choose subcontractors and to analyze the effect of the main contractor–subcontractor relationship on project performance. This research used a descriptive survey method to look at the underlying characteristics that influence the relationship between the main contractor and subcontractors and their effect on the performance of construction projects. The findings of the study confirmed that most contractor depends on subcontractors for the execution of their work and therefore procurement and management of subcontractors highly affects the performance of the construction project. It was also discovered that the subcontractor often performs 20 percent to 50 percent of the work. Main contractors used subcontractors primarily to offer skilled labor, lower overhead expenses, and relieve work and financial burden on themselves. The major causes of issues between the main contractor and the subcontractor include the main contractor's delay in releasing payments, the subcontractor's shortage of trained personnel, and scheduling conflicts among the subcontractors on a given project. To eliminate antagonistic relationships, the study advises a trust-based cooperative partnership that incorporates subcontractors into a partnering strategy. Furthermore, for optimal construction project performance, simpler and complete subcontract documents would improve the interaction between the main contractor and the subcontractor.},
 year = {2022}
}

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TY  - JOUR
T1  - Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects
AU  - Elias Defalgn Debelo
AU  - Zerihun Berhane Weldegebriel
Y1  - 2022/04/09
PY  - 2022
N1  - https://doi.org/10.11648/j.ajce.20221002.11
DO  - 10.11648/j.ajce.20221002.11
T2  - American Journal of Civil Engineering
JF  - American Journal of Civil Engineering
JO  - American Journal of Civil Engineering
SP  - 31
EP  - 42
PB  - Science Publishing Group
SN  - 2330-8737
UR  - https://doi.org/10.11648/j.ajce.20221002.11
AB  - Because of the common practice of subletting construction work into smaller packages, subcontracting has become an attractive technique in the construction business. Effective subcontractor selection and monitoring reduce the problem while also determining the performance of construction firms. The engagement of a subcontractor in a building construction project results in relationships with the main contractor, which will influence the project's success. The purpose of this study was to look at how main contractors choose subcontractors and to analyze the effect of the main contractor–subcontractor relationship on project performance. This research used a descriptive survey method to look at the underlying characteristics that influence the relationship between the main contractor and subcontractors and their effect on the performance of construction projects. The findings of the study confirmed that most contractor depends on subcontractors for the execution of their work and therefore procurement and management of subcontractors highly affects the performance of the construction project. It was also discovered that the subcontractor often performs 20 percent to 50 percent of the work. Main contractors used subcontractors primarily to offer skilled labor, lower overhead expenses, and relieve work and financial burden on themselves. The major causes of issues between the main contractor and the subcontractor include the main contractor's delay in releasing payments, the subcontractor's shortage of trained personnel, and scheduling conflicts among the subcontractors on a given project. To eliminate antagonistic relationships, the study advises a trust-based cooperative partnership that incorporates subcontractors into a partnering strategy. Furthermore, for optimal construction project performance, simpler and complete subcontract documents would improve the interaction between the main contractor and the subcontractor.
VL  - 10
IS  - 2
ER  -

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Author Information

Elias Defalgn Debelo

Department of Project Management, PBT Africa College, Addis Ababa, Ethiopia
Zerihun Berhane Weldegebriel

Center for African and Asian Studies, Addis Ababa University, Addis Ababa, Ethiopia

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APA Style

Elias Defalgn Debelo, Zerihun Berhane Weldegebriel. (2022). Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects. American Journal of Civil Engineering, 10(2), 31-42. https://doi.org/10.11648/j.ajce.20221002.11

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ACS Style

Elias Defalgn Debelo; Zerihun Berhane Weldegebriel. Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects. Am. J. Civ. Eng. 2022, 10(2), 31-42. doi: 10.11648/j.ajce.20221002.11

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AMA Style

Elias Defalgn Debelo, Zerihun Berhane Weldegebriel. Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects. Am J Civ Eng. 2022;10(2):31-42. doi: 10.11648/j.ajce.20221002.11

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@article{10.11648/j.ajce.20221002.11,
  author = {Elias Defalgn Debelo and Zerihun Berhane Weldegebriel},
  title = {Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects},
  journal = {American Journal of Civil Engineering},
  volume = {10},
  number = {2},
  pages = {31-42},
  doi = {10.11648/j.ajce.20221002.11},
  url = {https://doi.org/10.11648/j.ajce.20221002.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20221002.11},
  abstract = {Because of the common practice of subletting construction work into smaller packages, subcontracting has become an attractive technique in the construction business. Effective subcontractor selection and monitoring reduce the problem while also determining the performance of construction firms. The engagement of a subcontractor in a building construction project results in relationships with the main contractor, which will influence the project's success. The purpose of this study was to look at how main contractors choose subcontractors and to analyze the effect of the main contractor–subcontractor relationship on project performance. This research used a descriptive survey method to look at the underlying characteristics that influence the relationship between the main contractor and subcontractors and their effect on the performance of construction projects. The findings of the study confirmed that most contractor depends on subcontractors for the execution of their work and therefore procurement and management of subcontractors highly affects the performance of the construction project. It was also discovered that the subcontractor often performs 20 percent to 50 percent of the work. Main contractors used subcontractors primarily to offer skilled labor, lower overhead expenses, and relieve work and financial burden on themselves. The major causes of issues between the main contractor and the subcontractor include the main contractor's delay in releasing payments, the subcontractor's shortage of trained personnel, and scheduling conflicts among the subcontractors on a given project. To eliminate antagonistic relationships, the study advises a trust-based cooperative partnership that incorporates subcontractors into a partnering strategy. Furthermore, for optimal construction project performance, simpler and complete subcontract documents would improve the interaction between the main contractor and the subcontractor.},
 year = {2022}
}

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TY  - JOUR
T1  - Effect of Contractor – Subcontractor Relationship on the Performance of Construction Project: A Case Study of Dire Dawa Construction Projects
AU  - Elias Defalgn Debelo
AU  - Zerihun Berhane Weldegebriel
Y1  - 2022/04/09
PY  - 2022
N1  - https://doi.org/10.11648/j.ajce.20221002.11
DO  - 10.11648/j.ajce.20221002.11
T2  - American Journal of Civil Engineering
JF  - American Journal of Civil Engineering
JO  - American Journal of Civil Engineering
SP  - 31
EP  - 42
PB  - Science Publishing Group
SN  - 2330-8737
UR  - https://doi.org/10.11648/j.ajce.20221002.11
AB  - Because of the common practice of subletting construction work into smaller packages, subcontracting has become an attractive technique in the construction business. Effective subcontractor selection and monitoring reduce the problem while also determining the performance of construction firms. The engagement of a subcontractor in a building construction project results in relationships with the main contractor, which will influence the project's success. The purpose of this study was to look at how main contractors choose subcontractors and to analyze the effect of the main contractor–subcontractor relationship on project performance. This research used a descriptive survey method to look at the underlying characteristics that influence the relationship between the main contractor and subcontractors and their effect on the performance of construction projects. The findings of the study confirmed that most contractor depends on subcontractors for the execution of their work and therefore procurement and management of subcontractors highly affects the performance of the construction project. It was also discovered that the subcontractor often performs 20 percent to 50 percent of the work. Main contractors used subcontractors primarily to offer skilled labor, lower overhead expenses, and relieve work and financial burden on themselves. The major causes of issues between the main contractor and the subcontractor include the main contractor's delay in releasing payments, the subcontractor's shortage of trained personnel, and scheduling conflicts among the subcontractors on a given project. To eliminate antagonistic relationships, the study advises a trust-based cooperative partnership that incorporates subcontractors into a partnering strategy. Furthermore, for optimal construction project performance, simpler and complete subcontract documents would improve the interaction between the main contractor and the subcontractor.
VL  - 10
IS  - 2
ER  -

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