Closing The Contractual Circle: Investigating Emergent Subcontracting Approaches

Abstract

The construction industry is shifting away from the traditional paradigm, one that places users, planners, designers and contractors in different silos while performing design and construction services necessary to deliver construction projects. New contractual schemes, which rely on integration among contractual tiers, are emerging. Some of these schemes close the contractual framework at lower tiers by having multiple upper-tier parties subcontract work to the same lower-tier entity. In these instances, subcontractors have contractual relationships with more than one other upper-tier party in the same project. A previous study on Building Information Modeling (BIM)-enabled projects (Clevenger and Khan 2014) revealed the emergence of these types of contractual relationships. To date, however, little is known on these emergent approaches, their diffusion, criteria for adoption or expected advantages. Use of these emergent models for building contractors was assessed using a survey. Data collection involved contractors in Washington State. After initial screening, several contractors were selected and interviewed regarding the nature of the adopted emergent subcontracting practices, the purpose for using them and their perceived outcomes. This research contributes to a greater understanding of the occurrence, reasons, and advantages and disadvantages of these emergent contractual schemes. A discussion of their impact on overall project performance is also included.