Labour-intensive construction sub-contractors: Their critical success factors

Abstract

What contributes to the success of sub-contractors is a key concern of the construction industry as the performance of sub-contracting firms is far from satisfactory. While certain studies have been carried out to examine the critical success factors (CSFs) for sub-contractors, it is unrealistic to assume that these CSFs are relevant to all types of sub-contractors. Hence, the purpose of this paper is to establish a set of CSFs for those construction sub-contractors which are labour-intensive in nature. To achieve that, a self-administered questionnaire survey was conducted in Hong Kong. A set of CSFs pertinent to labour-intensive sub-contractors are first identified through descriptive statistics. The CSFs are then compared with those pertinent to equipment-intensive trade specialists. Finally, the identified CSFs are grouped into three components through a factor analysis. Through the survey, nine factors are identified as critical to the success of labour-intensive sub-contractors, and these CSFs are grouped into three components viz. the managerial performance, financial performance, and labour-intensive specific factors. The findings of this study provide a good basis for labour-intensive sub-contractors to improve their success at project and organisational levels. The identified CSFs will also provide a solid foundation for future research into the key performance indicators and benchmarks for labour-intensive sub-contractors. © 2009 Elsevier Ltd and IPMA.