Subcontractor Selection and Performance Evaluation in Construction
This paper analyzes two interrelated questions in construction management: what factors should guide subcontractor selection, and how should general contractors monitor subcontractor performance once work begins. Drawing on a critical literature review and a case study of the U.S. Penitentiary at Coleman, Florida, the paper identifies key selection criteria — including past experience, technical ability, current workload, and responsiveness — alongside formal bidding procedures and weighted evaluation methods. It then examines performance monitoring tools such as the balanced scorecard, the Critical Path Method, and construction management software platforms. The paper also addresses institutional barriers facing minority-owned subcontractors and concludes with recommendations for more rigorous, research-based evaluation practices.
- Introduction to Subcontracting in Construction: Origins, definition, and industry context of subcontracting
- Research Approach and Methodology: Mixed-method design using literature review and case study
- Factors in Subcontractor Selection: Key criteria including experience, resources, and organizational fit
- Formal Bidding Procedures and Weighted Evaluation: Government bidding rules and weighted scoring frameworks
- Monitoring and Evaluating Subcontractor Performance: Balanced scorecard and day-to-day performance assessment methods
- Technology Tools for Performance Measurement: Construction software platforms and the Critical Path Method
- Summary, Limitations, and Recommendations: Research recap, study limitations, and future research directions
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What makes this paper effective
- Integrates multiple evidence types — legal definitions, government bidding procedures, peer-reviewed studies, and a detailed case study — to build a well-rounded argument rather than relying on a single source type.
- Addresses both the formal and informal dimensions of subcontractor selection, including institutionalized bias against minority-owned firms, adding socially important nuance to an otherwise procedural topic.
- Connects abstract management frameworks (the balanced scorecard, CPM) directly to construction industry practice, grounding theory in concrete application.
Key academic technique demonstrated
The paper demonstrates effective use of a mixed methodology — combining a systematic literature review with an embedded case study. The USP-Coleman design/build project serves as a running illustrative example that ties together selection criteria, organizational culture, communication practices, and performance evaluation, giving the reader a coherent real-world anchor throughout the analysis.
Structure breakdown
The paper is organized around two discrete research questions, each with its own introduction, research approach, findings, and summary section — a structure that mirrors a professional research report. The first half covers subcontractor selection criteria and bidding methods; the second half shifts to performance monitoring, introducing the balanced scorecard framework (presented as a structured table), a roster of software tools, and the Critical Path Method. The parallel structure makes the two halves easy to compare and reinforces the logical progression from selection to ongoing evaluation.
Introduction to Subcontracting in Construction
Outsourcing may be a term of fairly recent origin, but the practice itself is truly ancient — humans have been compelled to organize themselves into cooperative networks throughout history just to survive. Indeed, many of the same reasons for such practices remain applicable today. Few companies possess the expertise, talent, and resources to accomplish everything required of an organization in-house, and most therefore outsource some component of their business systems (Child & Faulkner, 1998). From this perspective, it simply makes good business sense to ally with others who are in a better position — because of superior talent, expertise, and resources — to do certain types of work more efficiently, and the construction industry is no exception.
In fact, although some automobile owners may still possess the mechanical aptitude needed to work on cars today, few will likely possess the ultra-expensive computerized diagnostic equipment and sophisticated tools required to do so efficiently, so it just makes sense to have a specialist do the work instead. According to Brimmer (1992), "The subcontractor works below the general contractor. This is usually a small firm — it could be a single individual with a few employees — that obtains work from the general contractor. The subcontractor may also be highly specialized for certain projects" (p. 43). Likewise, many contractors may lack the expertise or requisite experience needed for a given project and will require the assistance of numerous subcontractors to help complete the project on time and on budget (Applebaum, 1999).
In this regard, Brimmer adds that "the key general and subcontracting firms have typically gained expertise by specific experience. For instance, an electrical contractor is nearly always an electrician, a plumbing contractor is a plumber, and a mechanical contractor is a mechanic. The opportunity to enter early and master these trades is vital to success" (p. 43). In almost every case, there will be certain components of a project that can only be accomplished by certain trades, and there will be local, state, and federal laws to take into account as well (Sims, 2002). These are critical issues given the enormous scale of the construction industry in the United States today and the amounts of money that might be involved in a major project. As Brimmer (1992) emphasizes, "The construction industry is a major force in the U.S. economy. It is a mainspring of economic growth and generates significant jobs and revenue" (p. 43).
According to Applebaum (1999), the construction industry can be divided into three fundamental components: general building contractors; heavy construction contractors; and specialty trade contractors. This author reports that "general building contractors build residential, industrial, commercial, and other buildings. Heavy construction contractors build sewer systems, roads, highways, bridges, tunnels, dams, and other projects. Specialty trade contractors are engaged in specialized work activities such as carpentry, masonry, plumbing, electrical, painting, heating and air-conditioning work, and all other trades that go into the building of a structure" (Applebaum, 1999, p. 5).
Research Approach and Methodology
In order to gain as much insight as possible into what factors should be evaluated in selecting a subcontractor, this study employed a mixed methodology using both a critical review of the relevant literature and a case study of general contractors in the construction industry — examining how they have gone about accomplishing and evaluating the process in different settings for different types of projects. According to Gratton and Jones (2003), a critical review of the current literature is an essential task in all research: "No matter how original you think the research question may be, it is almost certain that your work will be building on the work of others. It is here that the review of such existing work is important" (p. 51).
In addition, the literature review is a useful way of developing the background required for the research, where it is important to demonstrate a clear understanding of the relevant theories and concepts, the results of past research into the area, the types of methodologies and research designs employed in such research, and areas where the literature is deficient (Gratton & Jones, 2003). In this regard, Wood and Ellis (2003) identify the following as important outcomes of a well-conducted literature review as it specifically relates to the construction industry today:
It helps describe a topic of interest and refine research questions or directions in which to look. It presents a clear description and evaluation of the theories and concepts that have informed research into the topic of interest. It provides insights into the topic that are both methodological and substantive. It clarifies the relationship to previous research and highlights where new research may contribute by identifying research possibilities that have been overlooked so far. It demonstrates powers of critical analysis by, for instance, exposing taken-for-granted assumptions underpinning previous research and identifying possibilities for replacing them with alternative assumptions. It justifies any new research through a coherent critique of what has gone before and demonstrates why new research is both timely and important.
As to the case study approach, Zikmund (2000) reports that the case study method is "an exploratory research technique that intensively investigates one or a few situations similar to the researcher's problem situation" (p. 722). The main advantage of incorporating this approach into a research project is that a subject area can be investigated in depth and with great attention to detail (Leedy, 1997). The intent of this combined approach is to provide industry professionals with timely guidance concerning which techniques have proven successful in evaluating different subcontractors for a given project, notwithstanding the enormous differences that each such project will entail.
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