SUBCONTRACTING PRACTICES IN CONSTRUCTION INDUSTRY OF PAKISTAN

Abstract

Subcontracting on construction projects is a common and well-established practice. Contractors enlist the services of subcontractors to achieve certain objectives, including obtaining cost reductions, securing access to specialized services, and risk sharing. Nonetheless, subcontracting on a project can introduce certain associated problems which can affect construction management and construction quality. This research explored the subcontracting practices in the construction industry of Pakistan, identified the main problem areas, examined the overall satisfaction with the quality of service provided by subcontractors, and focused on ways to improve the quality of construction affected by subcontracting. A questionnaire survey was conducted to investigate the extent and involvement of construction firms in subcontracting, reasons for subcontracting, and the selection criteria of subcontractors. The survey also sought information on forms and terms of subcontracts, associated problems with remedies, and the overall satisfaction with subcontracting. Additionally, interviews were conducted with researchers, professionals and experts of the industry. The results reveal a widespread use of subcontracting and sub-subcontracting in the construction industry, primarily done to save time and money. The results reveal that the selection of subcontractors is made from a list developed by each company on performance based on the experiences that they had with the subcontractors on previous projects.