Successful verification of subcontracted work in the construction industry

Abstract

Due to the introduction of new types of contracts, such as Design, Build, Finance, & Maintain (DBFM), a major shift in tasks and responsibilities from client to contractor can be seen in the construction industry. To manage these new contracts and corresponding shifts in responsibilities, systems engineering (SE) is seen as a relevant instrument and applied increasingly in this industry. When these new, integrated contracts are applied in combination with SE, the contractor becomes responsible for verification. The contractor, however, is not the only organization that executes verification tasks as contractors regularly subcontract work to suppliers. Although the main contractor bears the final responsibility toward the client, it may be expected that the supplier verifies its own work. This requires verification to be carried out further down the supply chain. However, many problems are experienced when allocating these verification responsibilities to the suppliers. This paper explores which verification problems are faced in construction work that is subcontracted to suppliers. A conceptual framework is applied to categorize these problems and to analyze the solutions applied in the construction industry. The major finding of this study is that causes of verification problems can be found at both the contractor and the supplier side. Improvements are suggested for both these sides.