Revisiting the critical success factors (CSFs) contributing to a good subcontracting relationship: Analysing Malaysian construction projects

Many parties in a construction project, such as the client, consultant, contractor and subcontractors, are responsible for delivering a quality project. A breakdown of any of the parties will critically influence the quality of the ultimate project. Subcontracting is becoming more popular in the construction industry because it allows the main contractor to transfer risk to the subcontractor and has a positive impact on specialisation in construction work. The objective of this study is to identify the critical success factors that contribute to a good subcontracting relationship by analysing Malaysian construction projects. A critical literature review was conducted to establish, ascertain and document the fifty-five factors assessing a good subcontracting relationship. The questionnaire survey was distributed via postal, face-to-face and electronic means. One thousand sets of questionnaire surveys were distributed to construction firms who registered under Grade 5, 6 and 7 based on the Construction Industry Development Board (CIDB) Malaysia’s list of registered contractors. A total of 305 questionnaires were collected and analysed using IBM SPSS software. The data was then analysed using descriptive analysis, frequency analysis and factor analysis. The results confirmed the existence of the factors identified in the literature review, and they also indicated that the factor analysis technique of the 35 factors out of 55 were grouped into 11 underlying factors, which included based on the findings. The study found that having competency (0.650) and good communication (0.638) had a significant influence on a good subcontracting relationship. Lastly, the Critical Success Factors (CSFs) that influence the development of subcontracting relationships must be studied in order to determine the solutions or ways to improve the construction supply chain relationships. In this regard, this study can fill existing research gaps while also serving as a reference in the construction supply chain, especially in the subcontracting management context.