Why Do Contractors Sub-Contract Works to Sub-Contractors?

Chapter 11

Why Do Contractors Subcontract Work to

Subcontractors?

Khairuddin Abdul Rashid, International Islamic University Malaysia

Introduction

This chapter reports on a study of the practice in the Malaysian construction industry of contractors

subcontracting to others – otherwise known as subcontractors – work originally contracted to

them by clients. Specifically, the objectives of the study were the following:

(1) To identify the presence and extent of contractors subcontracting work to sub-contractors,

and

(2) To identify the motivation that drives contractors to subcontract work to subcontractors.

The motivation for the study stems from the general notion that in a typical construction project