Disputes between contractors and subcontractors in Sri Lankan construction industry

Abstract

The construction industry includes profusion of Subcontractors employed in various projects. Moreover, a higher number of subcontractors have begun entering into the industry due to ease of entry. However, all subcontractors might not possess the required proficiency to fulfil client’s necessities. Thus, various issues have aroused due to lack of proper subcontracting practices creating management of subcontractors in construction industry in Sri Lanka essential. The study incorporated interviews and questionnaire survey to derive at the aim of this research which was to identifying the caused for disputes in subcontracts in the construction industry in Sri Lanka and propose mitigation measures. Besides, to understand the practice of subcontracting in construction industry and caused for possible disputes, a literature synthesis followed by questionnaire survey and structured interviews were executed. Similarly, literature synthesis assisted to identify causes for disputes in subcontracts. Furthermore, preliminary investigation aided in validating the findings of the literature synthesis while more issues and solutions were added by the interviewees. Consequently issues and solutions were ranked through the questionnaire survey to identify the most critical issue. Subsequently the mitigation measures were proposed to overcome the disputes in subcontracts with the aid of the findings of literature synthesis, interview and questionnaire survey. Payment problems, coordination problems, lack of communication, quality issues, scheduling conflicts, no form of subcontract prepared for Sri Lankan usage; no compulsory subcontractor registration procedure; no practice of security of payment in Sri Lanka are major issues. Mitigation measures were suggested o overcome disputes in subcontracts by addressing the causes for disputes.