Quality Performance of Multi-layered Subcontracting Practices in Malaysian Construction Industry

Abstract

Multilayer subcontracting system is widely used within construction industry for better efficiency of subcontractors' operation due to their unique skills. However, the practice raises poor quality products in construction practice and contributes to poor project performance. Therefore, this study was conducted with the objectives to investigate the practice of multilayer subcontracting in Malaysian construction industry, to identify the problems arisen from multilayer subcontracting and to identify the methods for improvement of quality performance by multilayer subcontracting. A questionnaire survey was conducted. Based on the results, implementation of multilayer subcontracting system contributes largely to the poor performance across all major aspects including ineffectively time and cost management, quality works deficiency and poor communication and coordination performance. With various layers, the long communication channel causes various problems such as less control on bottom layers subcontractors, communication errors with the consequent of extra cost and time incurred due to abortive and remedial works are being taken. Recommendations for improving the practice are suggested to enhance prequalification of subcontractors, restrain the use of "supply-and-fix" subcontracting arrangement, and formulate an appropriate subcontractor evaluation system. The findings of this study provided a baseline in examining the multilayer subcontracting practices among main contractors and subcontractors and exploring the areas where the improvements can be made for obtaining the benefits of using this practice.