Paradigm shift in main contractor-subcontractor partnerships with an e-procurement framework

Subcontractors play an important role in the successful completion of construction projects. Recent changes within the business environment have shifted subcontracting toward a more advanced principal of partnership: between a main contractor and their subcontractors. While many studies have revealed a variety of factors that enhance partnerships, practical research about building a long-term systematic partnership between such main contractors and subcontractors is almost nonexistent. This research presents a paradigm shift in main contractor-subcontractor partnerships. It identifies 7 partnering elements - subcontracting strategy, performance improvement, process innovation, information sharing, cooperation in collaboration, standardization of selection, and feedback of evaluation - from literature reviews, and presents feedback and analysis from surveys and interviews. The results confirmed that both main contractors and subcontractors recognized that these elements were important to partnering, but that they were lacking in current execution. It also suggests the developing of a framework for an e-procurement system that applies a strategic-partnership philosophy to help improve the subcontracting processes of strategy, bidding, evaluation, and management. The results of this study may be applicable as a reference to aid development in creating realistic guidelines for the purpose of enhancing the overall effectiveness of the construction industry by improving main contractor-subcontractor partnerships.