A FRAMEWORK FOR SUBCONTRACTOR INTEGRATION IN ALLIANCE CONTRACTS

Abstract

Project alliancing involves the active collaboration of construction project owners and nonowner participants (designer, contractors, and suppliers) to deliver projects in an atmosphere of shared responsibilities and liabilities. Alliancing connotes integration but in real practice, it fails to create a true alliance environment since only part of the value chain (owner, designer, main contractor) is considered for integration. Consequently, subcontractors are very often left out of the key alliance. Therefore this study identifies improvement areas to current alliance practice and suggests changes that will permit critical sub-contracting processes to be integrated into a project’s main alliance. To achieve this objective the research follows a comparative study approach. Information obtained from relevant literature is used to identify current subcontractor management practices and best practices for subcontractor integration in alliances. A case study of an alliance project is used to identify improvement areas in subcontractor management practices in an alliance environment. From these findings, the study proposes a revised alliance framework that integrates subcontractors from the early stages in alliance contracts, thus enabling the realisation of benefits accruable to projects through early contractor involvement.