Project performance of relational contracting: A critical success factors perspective

Dzitouo, M (2024) Project performance of relational contracting: A critical success factors perspective. PhD thesis, Capella University, USA.

Abstract

Traditional project management structures often lead to project failures due to cost overruns, delays, and strained client-contractor relationships. Relational contracting, a relatively new way of looking at contracting focuses on relationships of trust rather than transactions. This dissertation explored the critical success factors of relational contracts. A generic qualitative inquiry research design was employed through interviews with 12 project managers from California recruited through User Interviews. The target population was project managers overseeing million-dollar projects in California. The sample consisted of project managers with diverse backgrounds and ages ranging from 30 to 50. Thematic analysis was used to identify three key themes. These themes were Workforce and performance management, Collaboration, and Relationship Dynamics. While relational contracting presents initial challenges, the data showed that upfront costs for training and quality materials were critical to project success through building enduring and mutually shared relationships between the client and the vendor. Multiple participants reported that these investments yielded significant benefits, particularly when combined with improved communication and reciprocity. It was evident from participants that the upfront training costs far outweighed the short-term cost savings. Notably, a collaborative approach fosters shared ownership among project team members, which can help attract top talent and ultimately lead to improved project outcomes. This study looked at critical success factors through the eyes and experiences of construction site project managers. Further research to explore enforceability of the trust and collaboration factors should be conducted along with studies across different industry contexts. Quantifying the benefits and draw backs associated with relational contracting could further reinforce the effectiveness of relational contracting.

Item Type: Thesis (Doctoral)
Thesis advisor: Turner, B
Uncontrolled Keywords: client; collaboration; communication; construction site; ownership; population; project performance; project success; project team; relational contracting; thematic analysis; training; trust; workforce
Index terms: performance management, relational contracting, project success, project manager, project failure, cost overrun, research design, project outcome, dynamics, ownership, effectiveness, project performance, dissertation, cost saving, project management, project team, interview, construction site, collaboration, population, thematic analysis, critical success factor
Subjects: research dissemination and communication, project completion, contractual arrangements, demography, control systems, profession, data collection methods, research design and methodology, project delivery, financial and cost management, work location, methods and analysis, project management theory and practice, performance measurement, management, economics, performance management, systems engineering
Topics: Procurement, Project Management, Engineering Principles, Quality Management, Roles and Professions, Research Practice, Cost Management, Organizational Design, Site Management, Urban Studies
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