A study of the relationship between main contractors and sub-contractors in Hong Kong's construction industry

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A study of the relationship between main contractors and sub-contractors in Hong Kong's construction industry

 

Author: Yuen, Tsz-shun
Title: A study of the relationship between main contractors and sub-contractors in Hong Kong's construction industry
Degree: M.Sc.
Year: 2002
Subject: Hong Kong Polytechnic University -- Dissertations
Construction contracts -- China -- Hong Kong
Subcontracting -- China -- Hong Kong
Department: Multi-disciplinary Studies
Dept. of Building and Real Estate
Pages: v, 72, [10] leaves : col. ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1637862
URI: http://theses.lib.polyu.edu.hk/handle/200/4454
Abstract: Recent evidence shows that many contractors prefer a low-trust relationship rather than a high-trust relationship as a way of improving performance during the construction stage of a contract and that inter-firm relationships have been affected by adversarial attitudes in recent years. This attitude influences the relationship between the working parties and also affects the atmosphere of the industry generally. As good relationships between working parties in a construction project is important for the success of HK's construction industry, it is important to investigate how this attitude can be changed. The study used a qualitative research methodology to investigate the relationship between main contractors and subcontractors and how each may benefit from their relationship. Although main contractors and subcontractors should maintain a good working relationship, it should not be too close. For example, if the main contractor only awards subcontracts to subcontractors with whom he has long term relationships, other subcontractors are no longer able to tender for this contractor's projects. They know that they are no longer likely to win the job and will only waste time and money in tendering. The study concluded that to achieve success in subcontracting and to maintain good relationships, both main contractor and subcontractor should have mutual trust, fair and proper contractual documents and make a balance between short-term and long-term relationships. Finally, a recommendation is made that further research be carried out to determine whether unfair contractual documents affect the working relationship between main contractors and subcontractors.

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