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Research papers, University of Canterbury Library

Principal contractors can achieve better financial performance in civil construction projects by increasing the proportion of works delivered by subcontractors. However, anecdotally the use of subcontractors is thought to be make principal contractors less competitive due to compounding profit margins. This study found that projects with a higher proportion of subcontracted work exhibit better financial results than projects with less work delivered by subcontractors. This study uses the Christchurch Infrastructure Alliance (known as the Stronger Christchurch Infrastructure Rebuild Team, SCIRT) as a case study to observe why principal contracting firms engage subcontractors and the effect subcontracting has on the overall performance of a construction project. Five top tier civil contracting firms (known as ‘delivery teams’) participated in the alliance. Each team was responsible for the delivery of individual projects. A sample of 334 individual SCIRT projects were analysed, and key delivery team staff were surveyed, to investigate the effect subcontractor engagement has on performance. Between the five delivery teams there were clear differences in how much work was delivered via subcontracts. The extent of this subcontractor engagement had a significant effect on the relative performance of the principal contractor. A positive correlation between subcontractor engagement and overall financial performance is observed, and a negative correlation is observed between subcontractor engagement and non-financial performance. Although the causes of these relationships appear complex, the primary reason appears to be that subcontracting fosters increased productivity by cascading financial performance incentives closer to the physical construction task. To maximise competitiveness and financial performance, principal contractors must embrace the use of subcontractors and develop efficient systems of managing subcontracted work.

Audio, Radio New Zealand

A review of the week's news including... Mt Albert voters head to the polls to select a new MP this weekend, we hear from three candidates contesting the by election, Maori political leaders respond explosively to the Labour leader's comments that the Maori party is "not kaupapa Maori", how did a senior council roading manager receive over 1.1 million dollars in payments from a council contractor without his bosses knowing? the High Court rules Kim Dotcom is eligible for extradition US, the Fire Service's principal rural fire officer says lives may have been lost had firefighters not been told to return to their station, Sky TV says a decision to deny its billion dollar proposal to buy Vodafone is bizarre and disappointing, Pharmac considers funding women's sanitary products, we have coverage from the 6th anniversary of the Christchurch earthquake, the Prime Minister puts the board of the NZ Super Fund on notice after it approved a 23 percent pay increase for its Chief Executive, an Australian woman helping New Zealand dairy farmers across the Tasman who have fallen onto hard times is horrified by a lack of Government help and helicopters to Hercules and F-16s to classic spitfire replicas are on display at Ohakea airforce base during this weekend's Air Tattoo.