Conflicts between Main Contractor and Domestic Sub-Contractors in the Building Projects in Tanzania; Experiences and Causes

Abstract

Conflicts are unavoidable in the projects; there is no project that is free from conflicts. At the same time, sub-contracting has been, and continues to be a very important aspect in building construction industry, as standard procedure in construction. Thus, the study aims at analyzing the conflicts between main contractor and domestic sub-contractors in building construction projects in Tanzania. Qualitative and quantitative approaches were employed in this research. Data was collected using questionnaires. A total of 38 questionnaires were distributed to building construction and domestic sub-contractors found in Dar-es-Salaam, and 32 were returned fairly filled for analysis accounting to 84.2%. On the experience in terms of the connection between main and sub-contractor; findings revealed 81.3% their relationship to be good. 43.8% said yes to have ever been in a project that did not go well because of problems between main and sub-contractor, while 53.1% said “no”. Moreover, on whether the project contract prepared are to each party specifications and satisfaction; 84.4% of the respondents said sometimes. In terms of the availability of a penalty clause in the project contract, if one of the parties fails to comply; 56.3% of the respondents said sometimes. 40.6% of the respondents said the payment is normally done immediately after completion. Furthermore, 75.0% said the contract is prepared by the main contractor. Besides, findings revealed PPRA as the most used form of sub-contract by 56.3% respondents. Additionally, 65.5% of the respondents have had a share of conflicts, either as a main contractor against a sub-contractor, or as a sub-contractor against a main contractor. Also, some respondents revealed, failing to follow instruction, delaying in materials delivery to site, poor quality of work, as well as main contractor’s squeezing them firmly on the quoted prices, leaving them fighting to make ends meet, alongside experiencing huge loses; as the main areas sparking the conflicts. Finally,69.6% reported the extent of occurrences of conflicts in Tanzanian building construction industry to be frequently. Moreover, Findings revealed delays in payment, poor communication, lack of trust, consultants delay in approving work and sample material, and shortage of construction materials in the market as well as unexpected price escalations are the factors with the highest frequency in causing conflicts. The study concludes that for the project to run smoothly and with less conflicts, proper attention must be paid to all recommendations such as good communication, cooperation and timely payment; early notice and proper records keeping; sub-contractor should have enough fund for project; certify work on time and timely payment; and risk management plan.