Defects in Service and Subcontractors Obligation to PayCorrect

57 It can be seen in this figure that most respondents 53 said that most supplierssubcontractors in their company are rated. 43 of them said that all supplierssubcontractors in their company are rated, and only 4 cannot say.

4.7.7 Defects in Service and Subcontractors Obligation to PayCorrect

Respondents were asked whether the subcontractors in their organization are obliged to pay or correct their mistake if defect occurs. Results in general for the respective companies are shown in the table below. Table 4.17 Subcontractors obligation to pay forcorrect for defect for the respective contractors. Companies Subcontractors’ obligation Waskita Karya Each subcontractor is required to take responsibility when mistakes happen and pay for or correct them Pembangunan Perumahan If defects in service are identified, subcontractors are required to pay for or correct them Wijaya Kusuma If defects in service are identified, subcontractors are required to pay for or correct them Wijaya Karya If defects in service are identified, subcontractors are required to pay for or correct them Hutama Karya If defects in service are identified, subcontractors are required to pay for or correct them Adhi Karya If defects in service are identified, subcontractors are required to pay for or correct them The results in general show that all companies agree that if defects in services are identified subcontractors responsible for those defects are required to pay for or correct them. It is the responsibility of each subcontractor to correct defects and mistake in their work. The management of the contractors also put this into consideration when negotiating the contract’s rules of engagement with their subcontractors to avoid dispute in the future. In this sense, the subcontractors need to be very careful to avoid mistakes and shortcomings in their work and to provide the best service possible. In this way both the 58 contractors and subcontractors are benefitted. The subcontractors will not get a claim to pay for or correct defects, while the contractors can deliver high quality work to satisfy their customers, The following figure highlights the level of response from individual respondents taken part in this research, irrespective of their companies, in relation with supplierssubcontractors obligation to pay forcorrect defects. Figure 4.15 subcontractors obligation to pay forcorrect defects in the construction industry in Semarang. The majority of respondents 82 said that the subcontractor must pay for or correct defects of their service when they are identified. 11 of them said the subcontractors are not requred to pay for or correct them, while 7 cannot say.

4.8 Quality in their organization