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http://dx.doi.org/10.13106/jafeb.2021.vol8.no3.0297

Critical Factors of Subcontractor Evaluation and Selection: A Case Study in Vietnam  

VO, Khoa Dang (Department of Project Management, Ho Chi Minh City Open University)
PHAM, Cuong Phu (Department of Construction Economics, Faculty of Transport and Economics, Campus in Ho Chi Minh City, University of Transport and Communications)
PHAN, Phuong Thanh (Department of Project Management, Ho Chi Minh City Open University)
VU, Ngoc Bich (School of Advanced Study, Ho Chi Minh City Open University)
DUONG, My Tien Ha (Faculty of Economics and Public Management, Ho Chi Minh City Open University)
LE, Loan Phuc (School of Advanced Study, Ho Chi Minh City Open University)
NGUYEN, Quyen Le Hoang Thuy To (Office of Cooperation and Research Management, Ho Chi Minh City Open University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.3, 2021 , pp. 297-305 More about this Journal
Abstract
A contractor or a main contractor is a company with full capacity to construct all project's works for the owner. A subcontractor is an organization that works with the main contractor to execute and complete work packages for the project. Selecting an effective subcontractor will help the efficiency and success of any projects in the construction industry. Therefore, this study identified subcontractor evaluation factors in Vietnam by collecting questionnaire survey data from engineers and staffs in the construction industry project environment. An exploratory factor analysis (EFA) was then performed to identify the critical factors when evaluating and selecting the subcontractor in construction projects. Moreover, when considering the impact level in terms of the average value, the research results showed that the most critical concern was the subcontractor's reputation. Furthermore, the top five factors affecting the sub-contractor evaluation and selection are (i) reputation, (ii) price, (iii) construction techniques, (iv) ability to implement projects according to commitments, and (v) subcontractor competence (the team of workers, technician staff, engineers with full capacity according to regulations). These research results provide an overall perspective that will help main contractors develop suitable subcontractors' evaluation and selection factors in their projects in the construction industry.
Keywords
Construction Management; Contractor; Construction Industry; Exploratory Factor Analysis; Project Management; Subcontractor; Vietnam;
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