Improved Subcontractor Selection Employing Partnering Principles

Abstract

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, i.e., 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 (1) of expanding the partnering “envelope” to encompass subcontractors in general; and more specifically, (2) of assessing the potential for such extended partnering as an integral part of the subcontractor selection process.