Mirzaee, A M; Hosseini, M R; Martek, I; Rahnamayiezekavat, P and Arashpour, M (2023) Mitigation of contractual breaches in international construction joint ventures under conditions of absent legal recourse: Case studies from Iran. Engineering, Construction and Architectural Management, 30(4), pp. 1481-1495. ISSN 0969-9988
Abstract
Purpose: Legal remedies are incorporated into international construction joint ventures (ICJVs) to mitigate contractual breaches. The effectiveness of remedies is predicated on two conditions; the comprehensiveness of the contract and its enforceability within the jurisdiction of interpretation. Relational-related weaknesses contribute to contracting parties placing a premium on the contract's capacity for mediating the relationship. However, contracts are not always enforceable. This study aims to examine means by which joint venture relational governance can be maintained under conditions of minimal legal recourse. Design/methodology/approach: A relational contracting (RC) theory was used as the theoretical underpinning of the paper. Data were collected and analyzed following a multiple-case study approach from case projects in which ICJVs' was used. Findings: The findings reveal (1) 17 relational and contractual governance problems; the main six being contractual flexibility, contractual joint venture system, contract reviewing, project conflict, national culture and leader–follower transgressions; (2) relational and contractual governance problems are managed differently, depending on financing sources and partners' national culture; and (3) that a developed RC-based framework comprising four stages is able to facilitate relational and contractual governance in ICJVs. Originality/value: This study is novel in providing a guided approach to developing non-legal remedies for the mitigation of contractual breaches in ICJVs, grounded in theory and contextualized for the construction sector.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction management; contractual breach; contractual enforcement; international construction; international construction joint ventures; Iran; relational contracting |
| Index terms: | mitigation, methodology, financing, construction sector, jurisdiction, international construction, effectiveness, placing, national culture, enforcement, governance, case study, joint venture, relational contracting, contracting party |
| Subjects: | research methods, performance management, concrete and cementitious materials, financial risk, health safety and environment, cross-cultural studies, industry analysis, business, data collection methods, strategic management, practitioner, economic analysis, contractual arrangements, legal systems |
| Topics: | Research Practice, Construction Materials, Business Strategy, Cost Management, Health and Safety, Procurement, Governance, Roles and Professions, Quality Management, International Construction, Legal Issues |
| Descriptive scope: | 4 PCTE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here