Impact of sub-contractor risk management on construction schedule performance

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Numerous construction projects are faced with late completion dates due to technical difficulties. These delays may also be attributed to the increasing complexity of projects and the underestimation of the complexity of a project. Due to the increasing complexities of projects, subcontracting is the order of the day so that firms can focus on their core competencies. However, there are situations where subcontractors disrupt the success of a construction project. Therefore, this study aimed at investigating the impact of sub-contractor risk management on schedule performance of construction projects. Four (4) objectives were established which were to determine the significant factors of subcontractor risk in construction project management, determine the significant factors of Schedule performance in construction project management, determine the relationship between factors of subcontractor risk and Schedule performance in construction project management and determine to what extent the risk factors impact schedule performance in construction project management. With these objectives, an extensive literature review was conducted from which variables on sub-contractor’s risks and schedule performance were identified. The variables were subsequently used in the development of a structured questionnaire. The questionnaire was distributed and fifty-four (54) were retrieved and used for the analysis of the study. The analysis was done using the mean score ranking and the multiple regression analysis. From the analysis, it was realized that, the most significant risk was site coordination risks followed by poor organization and co-ordination of subcontractor, poor workmanship by the sub-contractor and lack of proper communication. With the second objective, it was realized that, the first ranked factor was high technical ability of the project manager. This was followed by the competence of the construction manager, effective communication and the availability of resources as and when required. With the third and fourth objectives, it was realized that, lack of proper communication, excessive change orders, legal disputes, material shortages and poor organization and co-ordination shown significant relationship with schedule performance. Generally, the results indicated that, there is a significant relationship between subcontractor risk factors and schedule performance in the Ghanaian construction industry. From these findings, it was recommended that, contractors should adopt strategic risk management procedures in managing sub-contractor risk, project managers must communicate effectively with sub-contractors and main contractors in order to eliminate any form of misunderstanding and contractors must actively be involved in the site organization of sub-contractors to avoid work interference. This study was also limited to only schedule performance construction success criterion. Lastly, this study was also limited to the number of dependent variables that could be used as multiple regression uses only one dependent variable
A dissertation submitted to the Department of Construction Technology and Management, College of Art and Built Environment, in partial fulfillment of the requirement for the Degree of Master of Science.
Complexity of projects, Risk, Schedule Performance, Strategic risk management, Subcontractor risk management