Empirical modeling for conflict causes and contractual relationships in construction projects

Babaeian Jelodar, M; Yiu, T W and Wilkinson, S (2022) Empirical modeling for conflict causes and contractual relationships in construction projects. Journal of Construction Engineering and Management, 148(5): 04022017, ISSN 0733-9364

Abstract

Conflicts are an inevitable aspect of human interactions that can affect project cost and schedule, and the parties' relationships. Although the traditional mindset regards conflict as a negative event, there is a lack of empirical research in associating different causes of conflict with contractual relationship quality. This study aims to discover the linkages between the common causes of conflict and relationship quality. Thirteen common causes of conflict are identified. Accordingly, trust, performance satisfaction, commitment and teamwork among contracting parties have been identified as relationships attributes. Data is collected through an initial survey questionnaire. Multiple regression models are developed, and the stepwise backward elimination technique is used in analyzing the data. Accordingly, it is empirically demonstrated that significant causes of conflict can have both negative and positive effects on relationship quality. However, the causes of conflict cannot by themselves explain the variation of relationship quality among construction parties. Contract document ambiguities, opportunistic and adversarial behavior, and poor communication and misunderstandings are the three negative causes of conflict significantly associated with relationship quality. All four attributes show strong statistical significance to perceived relationship quality. Based on expert interviews, the empirical findings are validated, and further detail is provided for the effect of common causes of conflict on relationship attributes. A set of strategies for controlling and managing relationships is compiled and proposed.

Item Type: Article
Index terms: modelling, interaction, teamwork, satisfaction, multiple regression model, contracting party, linkage, questionnaire, contract document, variation, contractual relationship, construction project, adversarial behaviour, interview, project cost, survey, commitment, mindset, strategy
Subjects: contractual condition, production management, economics, management, statistical analysis, behavioral psychology, conflict resolution, practitioner, health behaviours and lifestyles, contractual relationship, business, data collection methods, analytical methods, project delivery, psychology
Topics: Organizational Design, Contract Administration, Roles and Professions, Stakeholder Management, Engineering Principles, Project Management, Research Practice, Cost Management, Business Strategy
Descriptive scope: 4 PCEA

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