Sub-Contractors’ Perception of Contracting: The Case of Crime

Author: Sondre Evjen, Gustav Gunnerud, Ola Lædre, Rune Søfting and Jardar Lohne
Publisher: 10th Nordic Conference on Construction Economics and Organization

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Purpose Reports from the Norwegian police indicate that actors in the architecture, engineering and construction industry face severe competition from criminal actors. Sub-contractors working within the law struggle to be competitive compared to dubious sub-contractors. This study aims to examine (1) what the sub-contractors’ perceptions of current contracting practices are, (2) what problems they face and (3) what countermeasures can be used to improve the situation. Design/Methodology/Approach The research was carried out on the basis of a qualitative approach. A literature review and a document study of reports from the sub-contractors, public agencies and other relevant organisations were conducted. In addition, in-depth interviews were conducted with the management of eight sub-contractors in the Norwegian architecture, engineering and construction industry. Findings There is a significant difference in the perception of the reality between contractors’ management and the blue-collar workers. Management among the contractors maintain that their control systems work; however, the result from this study shows that it is easy for the sub-contractors to take advantage of loopholes or avoid the countermeasures. Research Limitations/Implications This paper is limited to Norway and use only the paint industry as a case study. Practical Implications This study shows that sub-contractors constitute an important source of information in the effort to prevent dubious sub-contractors as they are the actors who experience the greatest pressure and competition from them. Therefore, contractors should include the sub-contractors in the process of developing measures to prevent this misconduct. Originality/Value A very little research has been carried out within this field of study in Norway.

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