Effect of sub-contractor selection on construction project success in Turkey

Abstract

The construction industry leads the national economy in developing countries. It involves industrial requirements, such as developing technologies, related expertise, demand variability, high production speed and progress. Firms in the industry use subcontractors to produce fast, effective solutions. Therefore, projects’ success varies depending on subcontractors’ rather than general contractors’ performance. This study aimed to develop a model of selection criteria for subcontractors and measure their impact on project success. Construction firms using subcontractors were chosen as the target group. Data on the selection of subcontractors from 93 construction firms that employ subcontractors in their projects were collected through a survey. The impact of the subcontracting selection factor on projects’ overall performance was presented with five hypotheses and modeled using a structural equation model. The weight of each selection factor in the subcontracting selection and the impact on the overall project were designated in the model by determining the standardized regression weights (β). Four hypotheses were accepted and one rejected. This study may contribute to the prequalification conditions in the process of selecting subcontractors in the future.