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Ain Shams Engineering Journal 13 (2022) 101813

Contents lists available at ScienceDirect

Ain Shams Engineering Journal


journal homepage: www.sciencedirect.com

The major problems between main contractors and subcontractors in


construction projects in Egypt
Dalia A. Kshaf a,⇑, Mohamed A. Mohamed b, Karim M. El-Dash c
a
Faculty of Engineering at Shoubra, Benha University, Civil Engineering Dept, Egypt
b
Civil Engineering Department, Faculty of Engineering at Shoubra, Benha University, Egypt
c
Construction Engineering and Management, Civil Engineering Dept, Faculty of Engineering at Misr University for Science and Technology, Egypt

a r t i c l e i n f o a b s t r a c t

Article history: Projects usually need continuous coordination among the participants in terms of scope of work, quick-
Received 20 January 2022 ness, and timing during the execution phase to be completed without delay. Sub-contracting is a common
Revised 27 March 2022 practice in civil engineering projects. Subcontractors carry out a large part of the work done in construc-
Accepted 16 April 2022
tion projects. Thus, selecting the right subcontractor basically contributes to the project’s success. In this
Available online 27 April 2022
study, it was targeted to explore the causes of the mainconflicts between the contractor and subcontrac-
tors and the responsibility distribution of these causes. The basic columns of any project are main con-
Keywords:
tractor and subcontractor, so the relationship between them must be good and effective in achieving
Main contractor
Sub-contractor
the project’s goals on time. A questionnaire was surveyed among the projects’ parties (including the
Relationship owner, the main contractor, the sub-contractor, and the consultant). The survey covered how to deter-
Contracting mine the party responsible for factors leading to dispute, and factors contributing to effective interface
Egypt between main contractors and sub-contractors. Statistical analysis was carried out on the observations
of the respondents of the survey using SPSS software. The mean score of each factor, degree of impor-
tance, and ranking was determined and the p-value was deduced using the Kruskal-wallis test to com-
pare between the projects’ parties. Also, the significance of each factor used in the questionnaire was
determined. The conclusions of the study revealed factors that enhance the relationships, such as con-
tract progress payment done on time, the problems related to the main contractor such as delay in con-
tract progress payment, the problems related to subcontractor such as work delay and the problems
related to other sources such as price escalation of material and labor. The results showed good accept-
able limits of homogeneity and reliability including communications, financial, workper formance, con-
tract, and other sources. The study recommended a framework that can be implemented to improve such
relationships such as compliance with the terms of the contract and choosing contractors specialized in
the required works. The main contribution of the study is improving the relationship between main con-
tractor and sub contractor, state the problems facing the relationship to set the methods that can be used
to processed with and that helps to success in the projects and development the construction sector in
Egypt. This study opens the way for continued development of model parameters that will aid in effec-
tively treating this subject area.
Ó 2022 THE AUTHORS. Published by Elsevier BV on behalf of Faculty of Engineering, Ain Shams University
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-
nd/4.0/).

1. Introduction

The Egyptian construction industry has completed a numerous


⇑ Corresponding author. number of projects in the past few years. Contractors have resorted
E-mail address: dollykshaf@hotmail.com (D.A. Kshaf). to subcontracting to share responsibilities and mitigate risks due to
Peer review under responsibility of Ain Shams University. projects’ size and complexity. Sometimes, sub-contracting may
cause bad project outcomes instead of improving project perfor-
mance [1].
In Egypt, it is usual for most construction projects not to meet
Production and hosting by Elsevier deadlines and run over budget. This practise could have a negative

https://doi.org/10.1016/j.asej.2022.101813
2090-4479/Ó 2022 THE AUTHORS. Published by Elsevier BV on behalf of Faculty of Engineering, Ain Shams University
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

impact on Egypt’s construction industry, as well as cause financial a major adverse consequence on the quality performance of the
difficulties for many construction companies [2]. The project par- project. Elhusseiny [22] state that Poor productivity level of labors,
ticipants in any construction project include: owners, main con- delay in payments by owner and unavailability or slow delivery of
tractors, subcontractors, and suppliers. All the participant construction materials and equipment causes delay in projects and
possesses its own obligations towards the successful execution of causes problems between the parties of the project. The most
the project. Subcontractors’ part of the performed construction important factors effecting on relationship between main contrac-
work is around 70% to 90%. As such, one of the most vital contrac- tor and subcontractor in previous studies among countries was
tual relationship is that between the main contractor and its sub- shown in Table1.
contractors [3]. Since subcontracting may be problematic for
many reasons, a poor relationship between main contractors and
subcontractors can be seen as a notorious contributor affecting
construction projects [4]. The construction industry plays the main
role in economic development, as it directly and deeply influences
other industries [5]. Construction projects involve many parties, Table 1
such as contractors, consultants, clients, suppliers, and sub- Important factors affecting relationship between the main contractor and subcon-
tractor by country.
contractors. To transfer the risks, the contractors normally sublet
the works to the sub-contractors, who are specialist agents in exe- Country Factors effecting on relationship between main
cuting a specific task and supplying manpower, equipment, tools, contractor and subcontractor

and designs as well [6]. Subcontractors help the contracting com- Lo et al.(2006) in Hong Inadequate resources due to lack of capital,
pany’s production system perform better. The relationship kong [23] Unforeseen ground conditions, Exceptionally
low bids, Inexperienced contractor, Works in
between the main contractor and sub-contractors is a key to any
conflict with existing utilities.
successful construction project [7]. The bad relationship between Assaf and AL-Hejji(2006) Shortage of labors, Delay in progress payments
main contractor and the subcontractor lead to delays that is con- in Saudi Arabia[24] by owner, Type of project bidding and award,
sidered one of the most challenging problems for construction pro- Unqualified work force, Late in reviewing and
approving design documents by owner.
jects, specially in Egypt. Delays occurrence leads to an increase in
Sambasivan and soon Improper planning, Site management,
the project’s time and cost [8]. Aziz [9] said that Many subcontrac- (2007) in Malaysia[25] Inadequate contractor experience, Finance and
tors may work under the main contractor on large projects. The payments of completed work, Subcontractors.
project can be finished on time and on budget if the subcontractor Sweis et al.(2013) in Poor planning and scheduling of the project by
is capable and reliable. Despite its importance, little information is Jordon[26] the Contractor, Financial difficulties faced by the
contractor, Too many change orders from the
available about the effective relationship between main contrac-
owner, Shortage of manpower, Incompetent
tors and sub-contractors. In Egypt, subcontractors are responsible technical staff assigned to the project.
for more than 90% of the work in construction [10]. El-Razek et al.(2008) in Financing by contractor during construction,
Egypt[27] Delays in contractor’s payment by owner,
Design changes by owner or his agent during
1.1. Factors of success and failure in project
construction, Partial payments during
construction, Non-utilization of professional
With the subcontractors executing 85% of construction tasks, construction/contractual management.
their performance will determine the project’s success or failure Enshassi et al.(2009)in Strikes, external or internal military action and
[11]. The incompetence to implement quality assurance, quality Gaza strip[16] border closures, Lack of materials in markets,
Shortage of construction materials on site, Delay
control programs, job safety regulations and improper planning
of material delivery to site, Cash problems
by sub-contractors causes delays in project completion [12]. White during construction.
[13] said that the lack of communication between contractor and Shivanthi (2019) in Sri On time payments, Have procurement systems
sub-contractor during the construction process and lack of pro- Lanka[28] align with the project attributes, Proper
gress as per planned schedule cause delays in project completion. evaluation before selecting parties, Do not select
only based on lowest bid, Regular discussions
The project is considered successful when it is completed on time, with respective parties.
within budget, and with acceptable quality, regardless of the com- El-khalek et al.(2019) [29] On time delivery of materials, Failure to
plexity, the size or the climate within which it is constructed [14]. complete contract due to financial problems,
Good partnering has a positive effect on project performance, not Sub-contractor’s difficulty in reimbursement,
Reputation, Tender price, Dealing with the
only with completion on time, cost, and quality but also in increas-
critical activities during the construction stage.
ing profit margins and decreasing claims [15]. Tayeh [16] discussed Biketi et al. (2017) Adherence of the subcontractor to subcontract
problem-causing factors and delay in project completion in Gaza requirements, Adherence of the subcontractor to
strip. He found that some tasks were assigned to another sub- the time schedule, Commitment to the provided
contractor without informing the original subcontractor. Main con- prices after awarding, Reputation of the
subcontractor, Specialty in certain type of work,
tractors’ authoritative attitude to sub-contractors is another factor Commitment to do remedial works. in Nairobi
that controls the success or the failure of any project [17]. Accord- Kenya[30]
ing to other researches, effective coordination and mutual confi- Cash flow management, Migration of
dence are two of the best indicators for construction project subcontractor’s workers, Sub-contractor’s lack of
enough working tools and equipments, Poor
progress [17,18,19]. Mahgoub et al. [20] showed that the most five
management practices by sub-contractors,
factors causing time delay in construction projects from perspec- Unreasonable delays to settlements of
tive of importance were:low productivity of labours,poor commu- variations. Teasha and Luvara (2017) in Tanzania
nication and coordination between parties, different ways of [31]
bribes, financing delay of the project,change orders during work Feng et al.(2018) Operational relationship, Quality of work,
Flexibility and cooperation in resolving disputes,
and unskilled labours. Adinyira et al. [21] said that financial risks, Planning of work, Failure to complete contract
resource risks, technical risks and managerial risks out of the five within cost. in India [38].
categories of risks positively influenced the quality performance Dahmas et al. (2019) complexity of the project, increasing rework,
of construction projects.The failure to properly manage risks lack of communication among the stakeholders.
in Yemen[32]
sourced from subcontractors on a construction project will have
2
D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

1.2. Effectiveness of the relationship between the main contractor and from construction industry respondents in Egypt to analyze the
the sub-contractor nature of the relationships between main contractors and sub-
contractors. Two hundred fifty-five respondents including main
The main factors in the relation between the main contractor contractors, consultant, owners, and sub-contractors whom are
and the sub-contractor are the operational relationship, quality, registered for public works were selected as the survey’s target.
flexibility in resolving disputes, planning, and failure to complete Then ranking the factors that outcomes from the questionnaire
a contract within cost [33]. In Egypt The main contractor and from their importance. Data were analyzed using Statistical Pack-
owner were found to have opposing viewpoints, mostly blaming age for Social Sciences (SPSS) by Kruskal-Wallis test was used to
each other for delays, while the consultant was seen as having a find the difference between the mentioned four groups on the level
more middle view. In order to significantly reduce delay a collabo- of categories relationship.
rative effort based on teamwork is required [27]. Marzouk and El-
Rasas [34] state that to improve the relationship between contrac- 2.1. Design of questionnaire survey
tors and help delay reduction in projects should have developed a
comprehensive financial plan and cash flow, developed a monitor- The following steps were followed in order to create the ques-
ing and periodical reporting of critical and long lead items and tionnaire. First, the preparing and formatting the questionnaire
periodically providing a narrative explanation of causes of any was divided into six parts. The first part of the questionnaire com-
experienced delay. Also, it is required to choose experienced sub- prised demographic information about respondents’ profiles
contractors with good reputation, devlop a good system for site including Main contractor, Sub-contractor, Owner, and consultant.
management and supervision. Moreover, it is recommened to This part was used to collect the respondents’ general information
develop effective planning and scheduling for the project to such as work experience, position and sub-sector. This part’s objec-
improvement the relationship between contractors and help tive was to understand the degree of the effect of the identified
accomplishing delay reduction in projects. Arslan [35] said that variables on the main contractor to sub-contractor relationship.
to set up effective relationships between the contractor and sub- The second part aimed to determine the level of the effect of prob-
contractors different important factors should be considered in lems related to the main contractor on the relationship considered.
selecting the sub-contractor, such as; cost, quality, time, and ade- The third part aimed to understand the degree of the effect of prob-
quacy. The conditions of the contract are the most important prior- lems related to the main contractor. The fourth part aimed to
ity that affect the effective relationship between the main determine the degree of the effect of problems related to sub-
contractor and the sub-contractor [36]. Aspects contribute to a suc- contractor. The fifth part aimed to understand the degree of the
cessful partnership between the main contractor and the sub- effect of problems related to others. The sixth part aimed to recog-
contractor are the long business relationship which considered nize the degree of the effective factors on improving the relation-
an integral part [37]. The risk sharing, protecting profit margin of ship. The respondents have five options for each factor from part
both parties, environment, health, and safety, and the prospects two to part six. They are; ‘very important,’ ‘important,’ ‘medium,
of future collaboration are top contributing constituents that affect ‘not important,’ and ‘least important.’ Table 2 includes all factors
the good relationship between contractor and sub-contractor [38]. affecting the relationship between contractor and sub-contractors.
Artto [39] considered that factors related to project management
and planning, operational relationship, financial, work quality, 2.2. Data collection
and project complications are the top factors affecting the success-
ful relationship between contractor and sub-contractor. The main Construction engineers working in Egypt’s construction indus-
objective of this research work is investigate the relationship try are the target demographic. They include consultants, main
between the main contractors and sub-contractors in the construc- contractors, subcontractors, and owner engineers. Cost estimator
tion industry and examine the effects of interfaces between them. engineers, contract engineers, site engineers, planning engineers,
Also, the study recommended a framework that can be imple- cost management engineers, construction managers, and project
mented to improve such relationships. managers are among the construction engineers.
The target population is determined by using Equation (1) [10]:

No: ¼ Z2 pq=e2 ð1Þ


2. Research methodology
2
where Z is the abscissa of the normal curve (1 – equals the
This chapter presents the approach of the research that offers a intended confidence level, e.g., 95%), e is the intended level of pre-
plan for how and what information should be collected. It paves cision, p is the evaluated proportion of an attribute that is presented
the way for how the findings should be handled to accomplish in the contributors, and q is (1-p).
the study’s key aims and objectives. It is divided into two main The questionnaire review was carried out in Egypt. The contrib-
parts: survey questionnaire and Statistical systems. utors are 25%, representing the number of contractors’ work in
The questionnaire is one of the best and most popular study construction projects. A confidence level, 95% is assumed,
tools used in gathering information for scientific research, as the thus = 1.96 from normality tables, p is assumed 0.25, e is assumed
researcher is the one who designs it and formulates questions to (±5%). Substituting for: Z, p, q, and e in the prior equation, causes a
suit the research topic. This information cannot be obtained from sample size no = 288.12. A total of 300 questionnaires were dis-
any other source, and thus provides a good amount of information tributed. Out of the targeted 255 respondents 255 responded, giv-
related to the topic of research and maintain confidentiality of per- ing a response rate of 88 percent.
sonal information so that it is possible for the participating persons Data collected were statistically analyzed using Microsoft Excel.
not to write their name on the questionnaire [40]. The advantages The Relative Importance Index (RII) was used to determine the
of the questionnaire are clarifying the objectives of the research, ranking of factors causing interface problems and improving the
obtaining new information, identifying problems, using the ques- relationship [28]. RII was computed using the following formula:
tionnaire as a reference and a resource for information, which will Equation (2) [41].
enable the researcher to compare the results of the study with the X
results of previous studies..So the questionnaire survey was RII ¼ ð WÞ=ðANÞ ¼ ð5n5 þ 4n4 þ 3n3 þ 2n2 þ 1n1 Þ=5N ð2Þ
selected as the main research methodology to gather opinions
3
D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

Table 2
Factors affecting the relation between contractors and sub-contractors.

Main Group Relationship Factors


Enhance relationships Factors Contract progress payment made on time, quality construction work, provision of quality material to sub-contractor,
good communication, adherence to the construction schedule, trust, provision of health and safety measures on site,
certify work on time, time overrun in terms of delay, cost overrun, poor quality, disputes between different project
parties, litigation, suspension of the work or contract termination.
Main contractors Factors Delay in contract progress payment, interruption and termination of the sub-contractor work, delay in providing
necessary materials to the sub-contractors, failure to provide necessary clarifications to sub-contractors, providing low
quality materials to the sub-contractor, assigning work to new sub-contractors without informing the original sub-
contractor, not providing the sub-contractor with essential services such as water and electricity, non-adherence to
construction schedule, lack of trust, failure to provide security on the site, disclosing sub-contractors bid price to
another to obtain a lower bid price, absence of the main contractor from site, failure to provide health and safety
measures on site, delay in certifying work, delay the final payment for as long as possible.
Sub-contractors Factors Work delays, non-adherence to main contractors’ instructions, sub-contractors absence from site, partnering the work
with another sub-contractor without getting the approval of the main contractor, lack of proper equipment, the sub-
contractor insolvency, poor health and safety compliance by sub-contractors, the sub-contractor lack of regular
communication with main contractor, the sub-contractor not informing the main contractor when there is a problem,
the sub-contractor non-adherence to the condition of contract, lack of construction quality work, the sub-contractor
involved in more than one project at a time, shortage of skilled labor, poor management of cash flow, failure to
preserve and take care of material.
Other Factors Change of governmental regulations and laws, extreme weather conditions, price escalations of material and labor,
geological condition of site is not as expected, political interference
Improving relationships Communication Communicating regularly, communicating when there is a problem, information communicated in time, complete and
related factors: clear contract documents.
Financial Timely progress payment to the subcontractor, accuracy of the project cost estimate, sub-contractor / main contractor
financial stability.
Work Sub-contractors possessing enough skilled labor, the sub-contractor posses’ adequate machinery, health and safety
performance performance, good construction work quality, adherence to the construction schedule, removing stereotypical
thinking.
Contract Fair Contract, adherence to the conditions of the contract
Other Early involvement of the subcontractor in project, involvement of the subcontractor in decision making process,
mutual objectives, trust between the parties

where: Respondents have different years of experience, positions, and


opinions of the relationship between the main contractor and
RII = relative importance index. sub-contractor, classified in Table 3.
W = the weighting given to each factor by respondents (ranges
from 1 to 5), where; 1 = very important to 5 = least important.
n1 = number of respondents for very important, n2 = number of 3. Ranking of factors
respondents for important, n3 = number of respondents for
moderate, n4 = number of respondents for not important, n5- Data collected from survey was analyzed by using the relative
= number of respondents for least important. importance index to rank the most important factors. Fig. 1,
A = the highest weight (which is 5 in this case). Fig. 2, Fig. 3, Fig. 4, and Table3 show ranking factors from the point
N = sample number. of view of main contractors, sub-contractors, owners, consultants,
and all parties. That contributes to a good relationship and factors
that cause relationship problems, and factors that cause relation-
ship improvement.
As indicated in Fig. 1, this information was collected from ana-
Table 3 lyzing the data collected from the questionnaire. This model’s main
General information of respondents.
objective is to rank the factors that enhance relationship from the
General information Interval Number of Percentage perspective of main contractor, sub-contractor, consultant, owner
scales respondents and all parties. All parties agreed that progress payments being
What is your position in your Sub- 9 3.5 paid on time is the most important factor to enhance the relation-
organization? contractor 51 20.0 ship. The participants stated that by rations of 95.3%, 92.4%, 91.3%,
PM 94 36.9 90.9%, and 92.5% for main contractor, sub-contractor, consultant,
Middle 73 28.6
Senior 28 11
owner and all parties; respectively. The contract progress pay-
Junior ments can be complicated and risky. Progress payments are diffi-
How long have you been Below 5 years 84 32.9 cult to handle because they are often disputed. Subcontractors
dealing with construction 5–10 years 103 40.4 and main contractors often conflict about the quantity and quality
projects? 10–15 years 38 14.9
of work that has been completed. Disputes take time to resolve.
Above 30 11.8
15 years As noticed from Fig. 2, the model shows the ranking of factors
How do you consider the Very good 180 70.6 related to the main contractor from the perspective of main con-
relationships between sub- Good 18 7.1 tractor, sub-contractor, consultant, owner and all parties. Most of
contractors and main Weak 56 22 the parties agreed that delay in progress payments is the most
contractors? Very weak 1 0.4
Which construction sub-sector Main 64 25.1
important factor to cause problems for the relationship. The partic-
do you belong to? contractor 63 24.7 ipants stated that by rations of 90.0%, 88.1%, 87.8%, and 88.5% for
Subcontractor 64 25.1 main contractor, consultant, owner and all parties; respectively.
Owner 64 25.1 The contractor can achieve the completion date, by starting slowly
Consultant
and then speeding up, or by working sporadically. This can cause
4
D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

Ranking of factors that can


aribute to a good relaonship
between the main contractors
and sub-contractor

Main contractor Sub-contractor


Owner factors Consultant factors All Pares factors
factors factors

1-Contract progress 1-Contract progress 1-Contract progress 1-Contract progress 1-Contract progress
payment done on payment done on payment done on payment done on payment done on
me(95.3%) me(92.4%) me(91.3%) me(90.9%) me(92.5%)

2-Adherence to the
2-Quality construcon 2-Quality construcon 2-Quality construcon 2-Quality construcon
construcon
work(91.9%) work(89.1%) work(86.9%) work(89.3%)
schedule(90.8%)

3-Adherence to the 3-Adherence to the 3-Adherence to the


3-Quality construcon
construcon construcon 3-Trust(84.4%) construcon
work(89.5%)
schedule(87.8) schedule(86.9%) schedule(87.2%)

4-Good 4-Good 4-Good 4-Adherence to the 4-Good


communicaon communicaon communicaon construcon communicaon
(87.8%) (89.5%) (85.3%) schedule(83.4%) (85.6%)

5-Providing quality 5-Suspension on the


5-me overrun in
materials to work or contract 5-Cost overrun(84.4%) 5-Trust(84.3%)
terms of delay(79.7%)
subcontractors(86.3%) terminaon(87.6%)

Fig. 1. Ranking of factors enhancing relationship between the main contractors and sub-contractors.

problems for the owner and main contractor, both in terms of Most of the parties agreed that price escalation of material and
being reassured during the course of the works that the completion labor is the most important factor to cause problems for the rela-
date will be achieved, and in their cash flow so that payments can tionship. The participants stated that by rations of 88.4%, 90.8%,
be made. Regarding to the subcontractor, the most important fac- 84.7%, and 86.6% for main contractor, sub-contractor, owner and
tor that cause problems in the relationship as stated by 89.8% was all parties; respectively. Financial crisis caused an increase in the
the interruption and termination of the sub-contractor’s work. At costs of the material and wages of labors as result of shortage sup-
the time of entering into a contract, It is the responsibility of the ply material, shortage in cash flow decreasing production of facto-
subcontractor to ensure that these clauses are enforceable. The ries. Regarding to the consultant, the most important factor that
main contractor has the right to terminate for its convenience if cause problems in the relationship as stated by 83.1% was the geo-
the interruption or stop of work and delay in execution from sub logical conditions of the site.
contractor. After determining the factors that affect each party’s relation-
As presented in Fig. 3, this model introduces ranking of most ship and causing the project to be delayed, a statistical analysis
important factors related to the sub-contractors that can cause of the factors that could improve the relationship between the gen-
problems from the perspective of main contractor, sub- eral contractor and the subcontractor was made. They were classi-
contractor, consultant, Owner and all parties. According to the fied into four sections, each section as divided into a group of
main contractor the most important factor that can cause problems factors as shows in Table 4.
in the relationship is work delays as stated by 87.8%, 87.2%, and The sections were improving communication, financial
87.8% of the main contractor, owner, and all respondents; respec- improvement, Improving work performance, improving contracts
tively. Subcontractors need to keep alert to the main contractor’s and improving other resources. The most important factors will
financial and should take heed of ongoing about the contractor’s be explained from the point of view of all parties.
financial position. The contractor’s late payment of other sub-
contractors and reduced resourcing on site causes constant work a. Communications
delays. Unsuccessful planning from the sub-contractor leads to
delay in critical activities and project. On the other hand, sub- The first section, which is improving communication. According
contractor insolvency was stated by 91.1% and 88.4% of sub- to main contractor the most important factor that can improve the
contractor and consultant; respectively. interaction in the relationship between the main contractor and
As indicated in Fig. 4, this model introduces ranking of most sub-contractors as stated by 92.8% was price communicating. for
important factors related to other sources that can cause problems sub-contractor the most important factor was complete and clear
from the perspective of main contractor, sub-contractor, consul- contract document. for the owner the most important factor was
tant, owner and all parties. communicating regularly. for the consultant the most severe factor

5
D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

Ranking of factors related to main


contractor that can cause problems
between the main contractors and
sub-contractors

Main contractor Sub-contractor Owner Consultant All Pares

1-Interrupon and
1-Delay in contract 1-Delay in contract 1-Delay in contract 1-Delay in contract
terminaon of
progress progress progress progress
subcontractor
payment(90%) payment(88.1%) payment(87.8%) payment(88.5%)
work(89.8%)

2-Interrupon and
2-Delay in providing 2-Delay in contract 2-Not-adherence to 2-Delay in providing
terminaon of
necessary materials to progress construcon necessary materials to
subcontractor
subcontractors(86.9%) payment(88.3%) schedule(85.6%) subcontractors(85.3%)
work(85.6%)

3-Failure to provide 3-Interrupon and 3-Interrupon and


3-Absence of main 3-Delay in providing
necessary terminaon of terminaon of
contractor from necessary materials to
clarificaons to subcontractor subcontractor
site(84.1%) subcontractors(83.4%)
subcontractors(87.3%) work(84.7%) work(85.3%)

4-Not providing
4-Avoiding to pay the
4-Not-adherence to subcontractor 4-Delay in providing 4-Not-adherence to
final payment for as
construcon essenal services such necessary materials to construcon
long as
schedule(83.4%) as water and subcontractors(84.4%) schedule(83.3%)
possible(82.8%)
electricity(87%)

5-Not providing 5-Not providing


5-Avoiding to pay the
5-Not providing sub- 5-Delay in providing subcontractor subcontractor
final payment for as
contractor essenal necessary materials to essenal services such essenal services such
long as
services such as water subcontractors(86.7%) as water and as water and
possible(82.5%)
and electricity(83.1%) electricity(80.9%) electricity(83.1%)

Fig. 2. . Ranking of factors related to the main contractor.

was complete and clear contract document and all parties the most d. Contract
important factor complete and clear contract document.
The most important factor that can improve interaction in the
b. Financial relationship between the main contractors and sub-contractors
of the main contractors was fair contract. The most important of
The second part is financial improvement, Table 3 indicate that the sub-contractors was fair contract. the most important factor
the most important factor that can improve the interaction in the of the owners was fair contract. The most important factor of the
relationship between the main contractors and sub-contractors consultants was fair contract and the most important factor of all
as stated by 92.2% of the main contractors was timely progress respondents was fair contract.
payment to the sub-contractor. the most important factor of the
sub-contractors was timely progress payment to the sub- e. Other sources
contractors. The most important factor of the owners was the accu-
racy of the project cost estimate. The most severe factor of the con- The most severe of the main contractors was the trust between
sultants was timely progress payment to the sub-contractor and the parties. The most important factor of the sub-contractors was
the most severe of all respondents was timely progress payment the early involvement of the sub-contractor in a project. The most
to the sub-contractor. severe factor of the owners was the trust between the parties not
being as expected. The most important of the consultants was
c. Work performance the trust between the parties and the most important factor that
can improve interaction in the relationship as stated by 83.4% of
The third part is work performance improvement, the most all respondents was the trust between the parties.
important factor of the main contractors was the sub-contractor
possessing enough skilled labor. The most important factor of the
sub-contractor was the sub-contractor possessing enough skilled 4. Statistical analysis
labor. the most important factor of the owners was the sub-
contractor possessing enough skilled labor. the most important Data were analyzed using Statistical Package for Social
factor of the consultants was the subcontractor possessing enough Sciences (SPSS). Table 5 includes numerical data expressed as
skilled labor and the most severe factor of all respondents was the mean rank for degree of importance and range. The table com-
sub-contractor possessing enough skilled labor. pares between the four groups of respondents including owners,
6
D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

Ranking of factors related to


subcontractor that can cause problems
between the main contractors and sub-
contractors

Main contractor Sub-contractor Owner Consultant All Pares

1-Sub-contractor 1-Sub-contractor
1-Work delays(87.8%) 1-Work delays(87.2%) 1-Work delays(87.8%)
insolvency(91.1%) insolvency(88.4%)

2-Sub-contractor’s 2-Sub-contractor’s 2-Not following main


2-Sub-contractor
absence from absence from contractor’s 2-Work delays(86.9%)
insolvency(87.4%)
site(87.5%) site(90.5%) instrucons(87.2%)

3-Sub-contractor not
3-Sub-contractor’s 3-Sub-contractor’s
3-Poor management adhering to the 3-Subcontractor
absence from absence from
of cash flow(86.6%) condion of insolvency(85.9%)
site(85.9%) site(87.1%)
contract(90.2%)

4-Sub-contractor not
4-Not following main 4-Not following main
4-Poor management adhering to the
contractor’s 4-Work delays(89.5%) contractor’s
of cash flow(85%) condion of
instrucons(85.6%) instrucons(86.1%)
contract(83.1%)

5-Sub-contractor not 5-Sub-contractor not


5-Not following main 5-Subcontractor’s 5-Not following main
adhering to the adhering to the
contractor’s absence from contractor’s
condion of condion of
instrucons(88.5%) site(84.7%) instrucons(83.1%)
contract(85.3%) contract(85.8%)

Fig. 3. Ranking of factors related to the sub-contractors.

consultants, sub-contractors and contractors. Kruskal-Wallis test thereby affecting the relationship with the main contractor. It is
was used to find the difference between the mentioned four necessary to verify the subcontractors’ previous work quality. This
groups on the level of categories relationship. It’s best suitable can be accomplished by referencing from old clients of sub-
method to use because this case is groups not variables non para- contractor as well as the project manager can visit the previous
metric statistic. sites before allotment of work. At the same time, contractors must
An analytical model is provided in this study. Table 6 indicate pay on time so that the subcontractor can maintain his cash flow
that the Chi-Square statistic appears as an option when requesting and investment in materials, labor, and equipment. The legal
a cross-tabulation in SPSS. The output is labeled Chi-Square Tests; instruments to protect the interest of subcontractors are general
the Chi-Square statistic used in the Test of Independence is labeled contracting law and Egypt law firm that regulate the relationship
Pearson Chi-Square. This statistic can be evaluated by comparing between the parties.
the actual value against a critical value found in a Chi-Square dis- Component 2: Main contractors related factors:
tribution where Chi: calculated value, Df: Degree of freedom and The factors under this particular component are the delay in
Sig: significant (p-value). providing necessary materials to subcontractors. Especially in con-
For importance: no difference between the four groups on all struction projects, material-related points shall be of top priority.
eight level P-value < 0.05 except levels (relationship between main Late procurement will lead to late delivery of the project.
contractor and subcontractor- subcontractors related factors- Component 3:Sub-contractors related factors:
improvement in relationships related factors(Communications-con The factor under this particular component is work delays. The
tract),p-value > 0.5. sub-contractor should plan ahead of time to avoid any delays in
critical activities, which could negatively affect the relationship
5. Discussion with the main contractor. To maintain the pace of the work and
remove the obstacles in decision-making, the subcontractor has
The most important factors for the total levels of components to coordinate with the project manager daily.
relationship between the main contractor and the subcontractor, Component 4: Other related factors:
main contractors related factors, sub-contractors related factors, The factor under this particular component is the price escala-
and improvement in relationships related factors are: tion of materials and labor. Suppose during the performance of
Component 1: Relationship between the main contractor and the contract, the price of the material significantly increases
the subcontractor: through no fault of the contractor. In that case, the price shall be
The factors under this particular component are contract pro- equitably adjusted by an amount reasonably necessary to cover
gress payment done on time and quality construction work. Qual- any such significant price increases. Such price shall be docu-
ity plays a vital role in controlling in subcontractors’ credibility, mented through receipts and invoices.

7
D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

Ranking of factors related to other


sources that can cause problems
between the main contractors and sub-
contractors

Main contractor Sub-contractor Owner Consultant All Pares

1-Price escalaon of 1-Price escalaon of 1-Geological 1-Price escalaon of 1-Price escalaon of


material and material and condions of site not material and material and
labor(88.4%) labor(90.8%) as expected(83.1%) labor(84.7%) labor(86.6%)

2-Change of 2-Change of 2-Change of 2-Change of


2-Geological
governmental governmental governmental governmental
condions of site not
regulaons and regulaons and regulaons and regulaons and
as expected(87.3%)
laws(80.9%) laws(83.1%) laws(80.9%) laws(82.9%)

3-Change of
3-Geological 3-Price escalaon of 3-Geological
governmental 3-Polical
condions of site not material and condions of site not
regulaons and interference(80.3%)
as expected(80.6%) labor(82.5%) as expected(82.4%)
laws(86.7%)

4-Polical 4-Polical 4-Polical 4-Extreme weather 4-Polical


interference(75.9%) interference(85.7%) interference(81.6%) condions(79.1%) interference(80.9%)

5-Geological
5-Extreme weather 5-Extreme weather 5-Extreme weather 5-Extreme weather
condions of site not
condions(62.5%) condions(83.2%) condions(78.4%) condions(75.8%)
as expected(78.8%)

Fig. 4. Ranking of factors related to other sources.

Table 4
Ranking of factors that improve the interaction between the main contractors and subcontractor.

Identified factors Ranking


Main Sub-contractor Owner Consultant All respondents
contractor
RII Rank RII Rank RII Rank RII Rank RII Rank
Communications
Communicating when there is a problem 92.8% 1 93% 2 85.9% 4 83.8% 3 88.9% 2
Complete and clear contract document 91.6% 2 94.3% 1 88.1% 2 85.9% 1 90% 1
Information communicate in time 89.7% 3 91.4% 3 86.3% 3 79.7% 4 86.7% 4
Communicating regularly 87.5% 4 90.8% 4 88.4% 1 84.4% 2 87.8% 3
Financial
Timely progress payment to the subcontractor 92.2% 1 92.4% 1 87.5% 3 87.8% 1 90% 1
Subcontractor/main contractor financial stability 90% 2 91.7% 3 89.4% 2 86.9% 2 89.6% 2
Accuracy of the project cost estimate 88.8% 3 92.4% 2 89.7% 1 86.3% 3 89.6% 3
Work performance
The subcontractor possesses enough skilled labor 91.3% 1 92.1% 1 86.9% 1 85.6% 1 88.9% 1
Good construction work quality 90% 2 88.9% 3 84.4% 4 81.6% 4 86.2% 4
Adherence to the construction schedule 90% 3 90.2% 2 86.6% 2 84.4% 3 87.8% 2
The subcontractor possesses adequate machinery 89.7% 4 88.6% 4 85.3% 3 84.4% 2 87% 3
Health and safety performance 79.4% 5 87.3% 5 80.9% 6 75.9% 6 80.9% 6
Removing stereotypical thinking 73.1% 6 87.3% 6 82.5% 5 81.6% 5 81.1% 5
Contract
Fair contract 91.3% 1 93% 1 89.4% 1 87.2% 1 89.9% 1
Adherence to the conditions of the contract 90.6% 2 92.1% 2 88.4% 2 84.4% 2 89.3% 2
Other
Trust between the parties 85.6% 1 84.1% 4 84.1% 1 80% 1 83.4% 1
Early involvement of the subcontractor in a project 80.9% 2 88.6% 1 83.1% 2 79.7% 2 83.1% 2
Mutual objectives 78.4% 3 85.1% 3 80.6% 3 78.1% 3 80.5% 3
Involvement of the subcontractor in decision making process 74.4% 4 85.1% 2 78.8% 4 74.7% 4 78.2% 4

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D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

Table 5
Mean rank for degree of importance.

Ranks
Group N Mean rank
Relationship between the main contractor and the subcontractor Main contractor 64 119.23
(degree of importance) Sub-contractor 63 151.30
Owner 64 132.97
Consultant 64 108.87
Total 255
Main contractors related factors Main contractor 64 126.53
(degree of importance) Sub-contractor 63 143.12
Owner 64 128.60
Consultant 64 113.98
Total 255
Sub-contractors related factors Main contractor 64 122.55
(degree of importance) Sub-contractor 63 150.37
Owner 64 126.23
Consultant 64 113.23
Total 255
Other related factors Main contractor 64 115.89
(degree of importance) Sub-contractor 63 149.34
Owner 64 123.88
Consultant 64 123.23
Total 255
Improvement relationships related factors Communications Main contractor 64 134.07
(degree of importance) Sub-contractor 63 148.77
Owner 64 120.52
Consultant 64 108.96
Total 255
Financial Main contractor 64 131.59
Sub-contractor 63 139.31
Owner 64 127.31
Consultant 64 113.97
Total 255
Work performance Main contractor 64 129.84
Sub-contractor 63 146.57
Owner 64 123.38
Consultant 64 112.50
Total 255
Contract Main contractor 64 134.97
Sub-contractor 63 141.22
Owner 64 127.93
Consultant 64 108.27
Total 255
Other Main contractor 64 123.49
Sub-contractor 63 146.63
Owner 64 127.26
Consultant 64 114.91
Total 255

Table 6
Chi-square and p-value for importance.
a,b
Test Statistics
Relationship Main contractors Subcontractors Other related Improvement relationships related factors
between main contractor related factors related factors factors (degree of importance)
and sub contractor (degree of (degree of (degree of
Communications Financial Work Contract Other
(degree of importance) importance) importance) importance)
performance
Chi- square 11.816 4.999 8.787 7.557 10.814 4.24 7.212 8.264
6.403
Df 3 3 3 3 3 3 3 3 3
Asymp. 0.008 0.172 0.032 0.056 0.013 0.24 0.065 0.041 0.094
Sig

Component 5: Improvement in relationships factors: 6. Summary and conclusions


The factors under this particular component are communica-
tions, work performance. The construction industry are described The paper aimed to identify factors and problems governing the
as highly interdependent and dependent in information sharing. main contractor and sub-contractor relationship, explore their
Timely accurate communication between the parties is critical to ranking, and underly relationship from point of view of all parties
achieving project success. The success of the project will be mea- in the project according their relative importance index and effect-
sured in terms of time, cost, and quality. ing it on the projects.

9
D.A. Kshaf, M.A. Mohamed and K.M. El-Dash Ain Shams Engineering Journal 13 (2022) 101813

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