Effectiveness of Communication between Contractors and Sub-contractors: Practices, Barriers and Enablers Reyes-Martinez Gustavo 1 Chileshe Nicholas 2 Abstract: The success of construction projects from the cost perspective is largely dependent on the Project Manager’s ability to effectively co-ordinate and manages the sub-contractors and contractors. This study seeks to indentify the practices, barriers and enablers that affect the management of contractors within the South Australian construction industry. 70 construction professionals were sampled who included project managers, architects, construction managers, estimators, cost consultants and contract administrators. 40 replies were received representing a 57% response rate. Survey response data was subjected to descriptive analysis. The findings indicated that 50% of the respondents used partnering principles to improve the sub-contractor management whereas conversely, the remaining 50% did not adopt the partnering principles. Out of those implementing partnering principles, the majority (50%) acknowledged its importance. Relative to the barriers, the major reasons for communication breakdown between contractors and sub- contractors were found to be “poor rapport between and sub contractor mostly due to payment issues”, “poor coordination of design and specification documentation”, and “late updates of revised information to sub-contractors”. The key enablers identified as important to building good relationships were as follows in a ranking order: “prompt payment to sub-contractors”, “fair and equal treatment”, “payment variations to scope of work” and “work incentives”. The practical implication for construction stakeholders are that the usage of identified practices such as partnering and adopting of enablers such as quick turnaround of payment, communication and scheduling will certainly improve the coordination and management of sub-contractors within the South Australian construction industry. The adoption of these practices on construction projects will lead to the creation of positive and mutually rewarding relationships. Keywords: barriers, communication, contractors, construction industry, South Australia. 1. INTRODUCTION The construction industry is considered critical to welfare and prosperity of a nation (RCBCI 2002). In transforming the aspirations and needs of people, from improving personal living standard to greater social and national level activities, into a physical reality, construction plays a vital role, as every business and individual person uses the built environment (RCBCI 2003) Construction provides the shelter to live and work, other amenities and facilities, such as parks, recreational areas, schools etc., to develop mental and physical ability, national infrastructure projects, such as road networks, energy supply, communications etc to run and continue all human activity (ABS 2010). Within the context of South Australia, the construction sector in is dominated by subcontracting and a head contractor generally employs 10% or less of the labour. A project is a temporary endeavour undertaken to create a unique product, services or result” (Burke 2007) in construction every project has a project manager. This project manager must have the ability to allocate resources, organise and co-ordinate the sequence of activities and critical tasks for several different trades simultaneously. This Project Manager will also require the necessary skills to ensure that all activities and miscellaneous tasks are completed throughout the various stages of project construction. 1 BSc (Hons), Construction Management and Economics, University of South Australia, City East Campus, Adelaide, South Australia 5001; Australia 2 MSc(Eng), MSc(Mgt), Pg.Cert-LT, PhD, FCIOB, FBEng, FHEA, FAIB, MCIM, MAIPM, Senior Lecturer, Program Director, Research Education Portfolio Leader, School of Natural Built Environments, Barbara Hardy Institute (BHI), University of South Australia, City East Campus, Adelaide, South Australia; 5001; PH (61) 8-83021854; FAX (61) 8-83022252; Email: Nicholas.Chileshe@unisa.edu.au Projects have become costly and expensive as a result of poor coordination and management of subcontractors within the South Australian Construction industry. This is often as a result of poor performing subcontractors (Prasad 1993). This has made it difficult for project managers to be able to deliver a project on time within cost and of good quality. Selecting a suitable subcontractor is a crucial element of project management as this will ultimately affect the indentified factors and will certainly contribute to the projects success. However this will only be achievable with good Project Management skills and practices. This research will establish the most fundamental skills and best practices a Project Manager should posses and implement with subcontractors on any project. The goal of this research topic will be on finding how to improve subcontractor management. Thus, based on the analysis of past research, the main objectives of this paper are as follows: (1) Determine the role of the project manager; (2) Investigate what skills and abilities project manager should posses; (3) Identify what practices and techniques should be improved or employed; (4) Analyse how the above contributes to projects deliverables being met. 2. LITERATURE REVIEW It has been identified that a problem exists with Project Managers being unable to deliver a project within the three constraint of time, cost and to quality this has resulted poor quality workmanship from subcontractors. The issues which arise from this is who is really responsible and what level of skills and are required to be able to deliver a project successfully also what are the practices and techniques which should be adopted and or improved. To be able to manage and coordinate subcontractors, so they can perform to an acceptable standard. There is ample evidence of literature on the enablers to effective communication. This has ranged from project