Identification of schedule risk factors associated with Nominated Subcontractors (NSC) in Vietnamese construction projects

Abstract

In the current context of construction investment in Vietnam, it has become increasingly common for main contractors to enter into contracts with Nominated Subcontractors (NSCs) as required by the Owners. This mechanism often stems from requirements regarding specific technical expertise, brand or equipment origin restrictions, and the Owner's overall project management policies. While the use of NSCs leverages the expertise capabilities of experienced specialized firms, this mechanism concurrently creates numerous risks during project execution, particularly those affecting construction schedule performance. This study was conducted based on the analysis of 106 valid survey responses collected from a total of 121 questionnaires, combined with the expert opinions of 11 professionals with 6 to 35 years of experience in the Vietnamese construction sector. The research results identified 21 key risk factors associated with the use of nominated subcontractors. Based on statistical analysis and validation against expert assessments, the study proceeded to rank the impact levels of these risk factors and propose specific mitigation strategies for the 10 factors assessed as having the most severe impact on project schedule performance.