A SHIFT IN CURRENT EMPLOYMENT CULTURE IN SINGAPORE'S CONSTRUCTION INDUSTRY

Abstract

One of the significant industries in Singapore is the construction sector. The practice of subcontracting is widely adopted in the current employment culture. However, this method presents several difficulties to both main contractor and subcontractor. Thus, this study aims to identify the challenges faced by main contractor and subcontractor due to subcontracting; explore unique employment cultures in other countries such as Japan and South Korea; and recommend solutions to improve the present situation. The study is based on literature review and the findings from the results of a field study comprising interviews and a survey using questionnaires. The literature review gives an overview of the current subcontracting practices in Singapore’s construction industry. Japan’s and South Korea’s unique employment culture were also studied. For instance, in both countries, there is long-term collaboration between involved parties and the development of the subcontractor. Therefore, the study of both countries could present valuable lessons for the construction industry in Singapore. Two sets of survey questionnaires were completed by 32 main contractors and 23 subcontractors. The survey sought to ascertain the issues facing both main contractors and subcontractors with subcontracting and also gather their views and recommendations on the issue. Interviews were conducted with 4 professionals from 4 contracting firms in the local construction industry in order to obtain deeper perceptives and analysis. The findings revealed the actual challenges faced by the main contractors and subcontractors and presented some of the recommendations proposed by them.

Thereafter, recommendations were made, based on the findings drawn from the components of the study: the literature review; and analysis of survey questionnaires and interviews. The adoption of long term relationship between main contractors and subcontractors, development of the capability of subcontractors, negotiable terms in subcontracting contract and prohibition of total subcontracting would help to achieve improvement in the current subcontracting practices. The recommendations are beneficial to the main contractor, subcontractor and the industry as it will eventually lead to an enhancement in the quality of work in the construction project. Lastly, future research can be done with regards to the feasibility of the recommendations proposed.