Factors contributing to the success of equipment-intensive subcontractors in construction

Abstract

The risk of subcontracting shall not be underestimated especially under today's highly competitive environment. To protect the best interest of contracting firms, subcontractors should be carefully selected. Previous studies have been focusing on the factors leading to the success of subcontracting work without paying much attention to those factors contributing to the organizational success. To gain a better insight on the success factors for subcontracting organizations, a survey which focuses on equipment-intensive subcontractors has been conducted in Hong Kong with various construction stakeholders. Acknowledging that equipment-intensive subcontractors may have their peculiar needs and characteristics, this paper strives to explore the critical success factors (CSFs) for this type of subcontractors. Seventeen CSFs for equipment-intensive subcontractors have been identified, and the results indicate that majority of them are internal factors. A one-way ANOVA test has been carried out, which confirms the consistency in perceptions of different construction stakeholders surveyed. Through a factor analysis the CSFs are grouped into six major components namely: (i) market position; (ii) equipment-related factors; (iii) human resources; (iv) earnings; (v) managerial ability to adapt to changes; and (vi) project success related factors. The findings of this research should not only help subcontractors to improve their performance but also to assist main contractor to identify a successful equipment-intensive subcontracting firm. © 2008 Elsevier Ltd and IPMA.