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The Effect of Sub-contracting on Construction Time for Commercial Projects in Chennai, India

Abstract

The purpose of this study was to examine the factors that effect actual construction time in the context of commercial projects in Chennai, India. One of the factors of particular interest was the extent of sub-contracting in construction projects. The data for the study was obtained from a few leading design and construction management companies in Chennai, India. The sample size consisted of 53 commercial construction projects scattered all over the region. The effect of sub-contracting on construction time was analyzed in conjunction with other known variables of time overrun, such as actual project cost and number of change orders. The results indicated that the effect of use of sub-contractors on construction time was statistically significant even in the presence of actual project cost and change order variables. It was concluded that the extent of sub-contracting could be included in prediction models used for finding out actual construction time of commercial projects, at least in this particular region of India. Based on these findings, a prediction model for construction time for such projects was developed.

Keywords: Construction time, Construction Cost, Commercial projects, Indian Construction Industry, International Construction, Sub-contractors.

Introduction

Time and cost are two major concerns in construction projects. In the construction industry, contractors usually use previous experiences to estimate the project duration and cost of a new project. In general, the more resources assigned to an activity, the less time it will take to complete the activity, but the cost is usually higher. This trade-off between time and cost gives construction planners both challenges and opportunities to work out the best construction plan that optimizes time and cost to complete a project.

The fundamental focus of project management has been to deliver projects on time, on budget and meet specifications. However, many major projects still fail to meet these targets, especially on cost and schedule. Owners and shareholders have always been concerned with fast-tracking projects, cutting costs and building safer buildings. The means of achieving these goals are not very clear to the industry. We occasionally read about successful projects that meet all of these goals; nonetheless, stories about failed projects, cost and time overruns, and drawn out court cases continue to dominate the headlines.

Literature indicates that investment in global construction is about 10% of the global economy. About 70% of this investment is in USA, Europe, and Japan, and 30% is in the rest of the world. Keeping such a magnitude of investment in mind, different governments have undertaken initiatives to improve the overall performances of the construction projects and the construction industry. Most of the studies related to improved performance in the construction industry have been done in the context of the developed countries; the applicability of the findings of such studies in the developing countries such as India is yet to be explored. Although the Indian construction industry has gained far more importance in recent times because of opening up of Indian markets and the arrival of mega projects

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Choudhury, I., & Khilathi, T. (2007, June), The Effect Of Sub Contracting On Construction Time For Commercial Projects In Chennai, India Paper presented at 2007 Annual Conference & Exposition, Honolulu, Hawaii. 10.18260/1-2--2819