TITLE:
Factors Affecting Contractors and Subcontractors Relationships in the Saudi Construction Industry
AUTHORS:
Fahad Suraid Almutairi
KEYWORDS:
Contractor-Subcontractor Relationship, Factors Affecting Contractor—Subcontractor Relationship, Construction Industry, Saudi Arabia
JOURNAL NAME:
Open Journal of Business and Management,
Vol.12 No.5,
September
10,
2024
ABSTRACT: The purpose of this study is to examine the dyadic relationship between contractors and subcontractors in the Saudi construction industry. The perceptual differences in buyer-supplier relationships to determine the factors that affect contractor—subcontractor relationship and its impact on project completion. To gain insight into and a deeper understanding of the topic, this research adopts a qualitative method using four case studies from the industry: one buyer firm and three suppliers. Twelve interviews were conducted in total, three with the buying firm and three with each subcontractor. From the main contractor’s point of view, the most important factor that affects the contractor and subcontractor relationship is delays, which means projects fall behind their schedule caused by the subcontractor. Conversely, from the subcontractor’s perspective, the most important factor influencing the contractor-subcontractor relationship is delays in contract progress payments. Theoretical contribution: the research contributes to the buyer-supplier literature by providing a dyadic study and showing how the buyer and supplier have different views about their relationship. Methodological contribution: A case study approach was used that led to an examination of issues that were not explained by previous studies. Practical contribution: useful information was provided for both contractors and subcontractors, such as the factors that affect their relationship. Identifying these factors and their impact on their relationship will enable both parties to act to remove these barriers and obstacles that prevent them from developing deeper and clearer relationships with their partners.