Selection Model of Subcontractor Relationships by Using Discriminant Analysis

Abstract

Subcontractors usually handle some parts of special works in construction projects. The development of the subcontractor’s relationship is one of the main issues to ensure the project's success. Many existing models were proposed for evaluating the subcontractor prequalification and performance, but a selection model of subcontractor relationships was still neglected for supporting the decision-making of the main contractor. Currently, main contractors use only their experience and personal preference to choose the type of subcontractor relationships. These practices can reduce the opportunities for finding a suitable subcontractor who could add more value to future explorative work. Moreover, if they mismatch the relationship type with the subcontractor, the main contractors will work with a poor-performance subcontractor. Thus, this wrong selection has hindered the benefit of a long-term relationship subcontractor. This study developed a selection model of subcontractor relationships to solve the problem. The methodology of this research collected data from the primary contractor's assessment of 15 projects, with 93 subcontractors based on factors influencing the current relationship type. Then, the selection model of subcontractor relationships was developed by using discriminant analysis. As a result, time control in planning, work quality, cooperation, and trust factors that influenced the outcome of the model development, were able to classify subcontractors into short-term or long-term relationships. The finding result was also validated and shown at an acceptable level. Therefore, the model development could support the decision-making of the main contractor in choosing the type of subcontractor relationship.