Critical Success Factors for Subcontractors Management in the Gaza Strip

Abstract

The construction industry is one of the main sectors of the Palestinian economy. It plays significant role in the economic development. This research has addressed an important but always neglected issue in the construction industry in the Gaza Strip, namely “the subcontractors’ management in the construction project”. Subcontracting is a common practice in the construction industry. On any particular project, general contractors may rely on many subcontractors to perform specific tasks such as construction works, electric works, mechanical works, roofing, steel erection and so on. This research aims to improve the management of subcontractors in construction projects in the Gaza Strip. The aim of the study is achieved by specific objectives which are: identifying the success factors affecting the subcontractors’ management in the construction project, find the barriers for the good performance of subcontractors in construction project and effect of subcontractors’ management in saving the project cost and time. A questionnaire survey was conducted and 83 factors were identified, categorized into 8 groups, evaluated and ranked from contractors and subcontractors perspectives. 135 questionnaires were distributed as follows: 90 to contractors and 45 to subcontractors. 113 questionnaires were received (83.7%) as follows: 81 (90%) from contractors and 32 (71%) from subcontractors. The research revealed the important success factors affecting the subcontractors’ management in the construction project in the Gaza Strip include: “Manager personality & his experience, financial ability & strength of the main contractors, government policy, market condition & political situation, quality and clarity of design drawing and shop drawings, practical and technical ability of the main contractors, qualified supervisory staff and the clarity of the contract between contractors and subcontractors” The study found out that a good subcontractors’ management in construction project effect on minimizing the overall cost and time of the project by minimizing the overhead percentage of the project, planned time for project construction, project labor cost and cost of variation orders. The study recommended that the contractors should select the project manager who has a strong personality and a high experience in the construction industry, contractors should have a strong financial capacity to be able to issue the financial payments to the subcontractor on the due time. Moreover it is recommended that the drawing and specifications for the project must be clear to all members of the project. And on other hand, Subcontractors are recommended to employ sufficient number of qualified technical staff with appropriate experience of the project and to prepare all required materials and equipment.