Subcontracting strategy in industrial projects

This research utilized questionnaire survey to investigate the process of subcontracting practices in industrial projects in the Eastern Province of Saudi Arabia. It identified the factors affecting subcontracting practices in industrial projects and the level of significance of each factor. The problems encountered by contractors while making subcontracting decisions were identified and the negative impacts of each of the problem on cost, schedule and quality performance of projects ascertained. The preferred pricing approach with which the contractor used to sublet works to the subcontractor in industrial projects was ascertained to be price based while the level of involvement of subcontractors in industrial project measured relative to the total contract price was obtained to be 20%. Having addressed the issues from the contractors' point of view, the study concludes with recommendations for effective subcontracting strategy in industrial projects.