An investigation into the sub-contractor selection process in the South African construction industry.

Abstract

This dissertation acknowledges that there is a need for improvement within the

South African construction industry. Due to the broad need for improvement in the

construction industry, this dissertation has investigated only one of the important

possible areas of improvement i.e. the sub-contractor selection process.

This dissertation investigates the existing sub-contractor selection methods used by

sixteen established construction companies. Field research has been conducted by

means of a questionnaire and all results have been compiled and analysed.

Improvement of the sub-contractor procurement process can be achieved by

benchmarking against practices used in the South African petroleum industry. This

industry has had similar problems yet succeeded in improving their quality, safety,

timeous completions, health and environmental issues. The construction of

refineries are implemented under conditions similar to those experienced by the

construction industry yet "best practice" procurement methods have been achieved.

Sub-contractors presently undertake a large portion of the construction industries'

activities and therefore should be more committed and responsible for their

workmanship. This could be achieved by principal contractors establishing a wellstructured

sub-contractor selection process, benchmarked against the petroleum

industry. The petroleum industry believes that by procuring better contractors, they

ensure better products. Their selection process ensures that all contractors meet

certain requirements, which results in client satisfaction.

The hypothesis, states that by benchmarking South African construction industry

processes in respect of sub-contractor procurement, against the South African

petroleum industry contractor procurement process, all stakeholders in the

construction industry will achieve higher standards.

If the principal contractors have well-structured sub-contractor selection processes,

this will ensure the selection of the best sub-contractor for a particular project. The

research and results prove this hypothesis. Without a paradigm shift by all stakeholders in the South African construction

industry, establishing "best practice" in the sub-contractor procurement process will

be unattainable. All stakeholders need to change their paradigms and invest in better

processes. The petroleum industry sub-contractor selection process can be utilized

by the construction industry positively and thereby establish higher satisfaction

levels for clients.