@article{MAKHILLJEAS2017122014894,
    title = {Subcontractor Bankruptcy Risk Monitoring System Based on Credit Information},
    journal = {Journal of Engineering and Applied Sciences},
    volume = {12},
    number = {20},
    pages = {5074-5078},
    year = {2017},
    issn = {1816-949x},
    doi = {jeasci.2017.5074.5078},
    url = {https://makhillpublications.co/view-article.php?issn=1816-949x&doi=jeasci.2017.5074.5078},
    author = {Sangchul and},
    keywords = {Supply chain,subcontractor,partnership,bankruptcy,risk,credit information},
    abstract = {Contractors are vulnerable to bankruptcy or financial risk due to discontinuous orders, the economic
recession and restructuring of construction industry. Therefore, general contractors have been straining to
predict subcontractor’s financial risk based on credit information during tendering. This research aimed at
developing the subcontractor bankruptcy risk index set based on subcontractor’s credit rating with overdue
information. And studied the current subcontractor’s bankruptcy risk management conducted by general
contractors, correlation analysis between short-term overdue and bankruptcy of subcontractor and produced
the bankruptcy risk monitoring model based on short term overdue condition. Case study was conducted to
compare new model with current model serviced by credit rating agency and showed how accurately this
system containing short-term delinquency information can be applied to default of subcontractors. When
applying for the pre-alarm system, it is possible to grasp the bankruptcy of suppliers in the on-site
field at least 30 days before the bidding process. In addition, the system can be used independently or in
conjunction with the existing procurement system, so it can be applied irrespective of the construction
company size and procurement system. The study results could be applied to SRM (Supplier Relationship
Management) or subcontractor management system of general contractors and support timely monitoring of
subcontractor’s financial risk for reducing bankruptcy rate.}
    }