THE CONTRACTOR-SUBCONTRACTOR RELATIONSHIP - THE SUBCONTRACTORS VIEW

In the construction of most projects, a significant role is played by specialty contractors, also commonly referred to as subcontractors. De spite the importance of subcontractors, little is publicized about the actual process by which subcontracts are initiated, how award arrange ments are. made, or how subcontracts are managed. An exploratory study was conducted that focused on this subject. Information was obtained on bidding practices, subcontracting arrangements, administrative prac tices, payment procedures, and project closeout. The results provide i nformation on various methods used by general contractors to place sub contractors at risk. Bid shopping appears to be a continuing practice in the construction industry, with little recourse for subcontractors. Subcontractors are often contractually required to assume risks that they would not otherwise assume. They are often required to assume all the obligations as stipulated in the contract between the owner and t he general contractor, but are not afforded the opportunity to examine it. Payment problems continue for subcontractors, with the practice e ssentially accepted by subcontractors as being a part of doing busines s. Suggestions are offered for improving the relationship between subc ontractors and general contractors.