Contractor as trust initiator in construction partnering: prisoner's dilemma perspective

Wong, P S P; Cheung, S O and Ho, P K M (2005) Contractor as trust initiator in construction partnering: prisoner's dilemma perspective. Journal of Construction Engineering and Management, 131(10), pp. 1045-1053. ISSN 0733-9364

Abstract

Partnering has been advocated for use in construction as a project-delivery approach to curb dispute and enable a cooperative contracting environment. Successful construction partnering is perceived to derive benefits to both developers and contractors. In view of significant implications to successful project delivery, there has been a surge of research and studies on construction partnering. These studies typically focus on the partnering process as well as the identification of critical success factors. Among the various success factors that underpin partnering success, establishing trust among partners is considered the most important. Moreover, skeptics have been swift to point out that establishing trust in construction is daunting. A better understanding of the role of trust and its manifestation in partnering efforts is therefore of both academic and practical value. In this study, motivating trust in construction partnering is described within the classic framework of "the prisoner's dilemma," which suggests the trust cycle can be kick-started if construction partners put cooperation before competition and self-interest. This paper reports a study that is designed to suggest a suitable candidate for the trust initiator. As such, the critical trust factors for two groups of construction partners in Hong Kong - developers/consultants and contractors - are first identified. It is found that "performance" and "permeability" of partners are the two most critical trust factors. "Performance" describes the partner's competence and problem-solving ability as perceived by their counterpart. "Permeability" reflects the partner's openness in sharing information. The result of a multiple-regression analysis further suggests that the contractor is in a position to initiate trust through competent performance and maintaining effective communication with the client. In this manner, the trust cycle can expand with reciprocal trustworthiness from the client.

Item Type: Article
Uncontrolled Keywords: contract management; contractors; Hong Kong; partnerships
Index terms: dispute, partnership, trust factor, partnering, Hong Kong, project delivery, multiple-regression, success factor, contract management, permeability, cooperation, critical success factor, competition, competence
Subjects: material properties and characteristics, Geography, contract management, personnel development, statistical analysis, market analysis, partnership management, control systems, dispute resolution, health monitoring assessment and metrics, project delivery, psychology
Topics: Human Resources, Legal Issues, Contract Administration, Organizational Design, Construction Materials, Research Practice, Geographical Context, Project Management, Health and Safety, Procurement, Stakeholder Management
Descriptive scope: 3 PCA

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