ASSESSMENT OF FACTORS INFLUENCING SUBCONTRACTING PERFORMANCE IN CONSTRUCTION PROJECT: A CASE OF PUBLIC BUILDING PROJECTS IN ADDIS ABABA CITY

Abstract

Many new projects have recently been constructed in Ethiopia's building industry. Due to the magnitude and complexity of many of these projects, contractors have resorted to subcontracting to share responsibilities and mitigate project risks. Subcontracting in the construction industry plays an important role in increasing economy viability and building capacity. However, sometimes using subcontractors makes projects less successful rather than making them more successful. Therefore, this study aims to explore the current subcontracting performance on public buildings in Addis Ababa city and determine those factors influencing the success of subcontracting performance and their relationship with the project performance which is considered to be a means of enhancing the efficiency of the project, and identifying which variables significantly affect the success of project implementation. A mixed approach method was employed in the study. Interviews and questionnaires were used as an instrument for the collection of data. To this end, 33 factors impacting subcontract performance were identified and categorized into four (4) groups. A questionnaire survey was performed on different randomly selected public building construction projects in Addis Ababa. The collected data were analyzed using a statistical package for social science software, version 20, and a Microsoft Excel sheet, and the result was displayed in the form of charts and tables. The finding of the study revealed that the practice of subcontracting on building projects is extensive but mainly dominated by labor-only works. In current practice, subcontracting is mainly practiced on block works, special installation works, finishing works, formworks, electric works, sanitary works, and shuttering works services than subcontracting practice on excavation and demolition works. Furthermore, the study determined late progress payment by main contractor, financial shortage of subcontractors, unsatisfactory poor standard works, and delay in subcontracted works are major common factors that influence time, cost, quality, and no dispute performance of subcontracting. In addition, the study result shows there is a positive and significant relationship between those influencing factors. The regression analysis result shows that working on a project team coordination, subcontractor, contractor and external related influencing factors of subcontracting performance will have a positive effect on the overall performance of construction projects. Contractors are suggested to use properly formulated selection criteria rather than depending on personal ties or the lowest price provided by subcontractors. The majority of subcontracting is labour alone, however, there is a need to include other subcontracting types and Subcontractors must raise the standard of their work and adhere to schedules.