Study on Contractual Relationship between Main Contractors and Subcontractors and Their Impacts on Main Contractors‟ Competitiveness in 20/80 Bole Arabsa Condominiums
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Date
2020-12
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Addis Ababa University
Abstract
This study presents the current nature of main contractor and subcontractor contractual relationship and subcontractors impact on main contractors‟ compitatvness in Addis Ababa 20/80 condominium projects. The objective of this research is to identify the main criteria used by main contractors for selection of subcontractors and to study the nature of their contractual relationship with respect to coordination, payment practice and signed contract documents. In this study questionnaire survey, interview and literature review were used to collect relevant information.Using questionnaire survey the required data were collected form 48 main contractors, 43 nominated subcontractors, 36 domestic subcontractors, 4 consultants and 4 clients which are worked in (20/80) condominium projects found in Bole Arabsa site. For the interview 4 main contractors, 3 nominated subcontractors and 5 domestic sub contractors were participated.
The study found out that main contractors mainly focused on low price offer, good relationship, technical knowledge and past experience during selection of subcontractors.The main factors leading to relationship problems between the main contractor and subcontractor are: delay of payment and supplying materials, frequent absence of the main contractor from the site, lack of communication, lack of trust, multi-layer subcontracting, unavailability of written document, financial difficulties, misunderstanding on valuation work done, etc.
The study concludes that there is poor and harsh contractual relationship between main contractor and subcontractors and, the finding can assist in the improvement of the main contractor and subcontractor contractual relationship for successful construction project implementation in housing projects. It also recommends that in order to enhance the contractual relationship between both parties‟: skill, responsibility, integrity, trust, and communication application shall be improved.
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Keywords
Construction projects, Main contractors, Sub-contractors, Relationship