Factors affecting contractor and subcontractor relationship and their effects on building project performance: case of Addis Ababa

This research examines the factors affecting the relationship between contractors and subcontractors and their impact on project performance, with a focus on building construction projects in Addis Ababa. Despite substantial existing literature on contractor-subcontractor interactions, there remains a notable gap in understanding how specific interface problems influence project outcomes within this regional context. The study aims to identify these interface issues, assess their effects on project performance, and propose mechanisms for improvement. Utilizing a combination of literature review, questionnaire surveys, and interviews with industry practitioners, the research reveals that key criteria for selecting subcontractors include specialty, previous experience, financial capacity, and quality of workmanship. The main factors impacting the contractor-subcontractor relationship include delays by contractors in providing materials and equipment, delays in interim payments, poor quality of subcontractor work, subcontractor financial strength, external influences, non-adherence to schedules, and coordination issues among subcontractors. The findings indicate that poor relationships between contractors and subcontractors lead to project delays, substandard work quality, increased rework, inefficient project performance, material waste, and damage to company reputations. To mitigate these issues and enhance project outcomes, the study recommends several strategies: prompt resolution of problems, fostering a collaborative partnership approach, ensuring timely and effective communication, adhering to payment schedules, and selecting capable subcontractors. These insights provide significant implications for improving operational efficiency and project performance, suggesting that addressing the identified gaps and implementing these recommendations can lead to more successful and efficient building construction projects.