Subcontracting Strategy

This book report a research that investigated the process of subcontracting practices in industrial projects in the Eastern Province of Saudi Arabia. The research identified the factors affecting subcontracting practices in industrial projects and the level of significance of each factor. The problems encountered by contractors while making subcontracting decisions were discovered and the negative impacts of each of the problem on cost, schedule and quality performance of projects ascertained. The preferred pricing approach with which the contractor used to sublet works to the subcontractor in industrial projects was ascertained to be price based while the level of involvement of subcontractors in industrial project measured relative to the total contract price was comparably low.