Evaluation of Subcontractor Selection Criteria and Comparison With Their Financial Performance Indicators
Keywords:Construction industry, Subcontractor selection, Performance evaluation, Financial indicators, Decision-making
The successful selection of subcontractors is a crucial process for any construction project. Many factors affect the subcontractor selection, and in most cases, the subcontractor is chosen based on the lowest bid. However, selecting an improper subcontractor can cause delay of works and delay in the project, low work quality, and additional resources. As the research methodology, a survey was carried out by 30 project managers, construction managers and site engineers participating in the construction sector as Main Contractor. This survey aimed to evaluate 20 subcontractors based on the evaluator's experience. For each subcontractor, financial performance indicators were calculated. The paper presents the connection between the survey results and financial ratios, improving the subcontractor's selection and the Main Contractor's decision-making process.
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Copyright (c) 2022 Stefan Koprivica
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