Mitigating the aftermath of relationship conflict between the owners and contractors: A contract enforcement approach

Gan, X; Jia, J; Le, Y; Liu, T and Xue, Y (2025) Mitigating the aftermath of relationship conflict between the owners and contractors: A contract enforcement approach. Engineering, Construction and Architectural Management, 32(8), pp. 4949-4968. ISSN 0969-9988

Abstract

Purpose – Relationship conflict between the owners and contractors is inevitable, which could induce negative consequences. Yet, the existing literature mostly focused on its direct effects on project performance and ignored the process by which relationship conflict gradually deteriorates cooperation as well as corresponding managerial approaches. Given the fact that relationship conflict originates from interdependent tasks, the proposed theoretical model is intended to measure relational behavior as an instant outcome of relationship conflict, and explore the buffering role of contract enforcement approach. Design/methodology/approach – This paper develops the conceptual model based on the literature review. Then the questionnaire survey was conducted. The dyadic data obtained from 168 Chinese construction project professionals were analyzed by the Partial Least squares Structural Equation Modeling (PLS-SEM) technique. Findings – The results show that relational behavior partially mediates the link between relationship conflict and project performance. Besides, three types of contract enforcement approaches are found to differentially change the negative link between relationship conflict and relational behavior. Rigid contract enforcement can worsen the adverse effects of relationship conflict on relational behavior, whereas flexible contract enforcement can alleviate these negative effects. The level of mitigation hinges on whether compromising behaviors or obliging behaviors are chosen. Originality/value – The study extends the knowledge of conflict theory and contract theory in the construction field. Based on the proposed conceptual model and PLS-SEM results, this study contributes to the understanding of relationship conflict's consequences between the owners and contractors and enriches conflict management approaches in the construction field.

Item Type: Article
Uncontrolled Keywords: construction industry; contract enforcement; owners and contractors; relational behavior; relationship conflict
Index terms: methodology, construction project, mitigation, questionnaire, partial least square, cooperation, conflict management, literature review, structural equation modelling, survey, project performance, construction industry, enforcement, direct effect, relationship conflict, owner, contract theory
Subjects: data analysis and analytics, data collection methods, statistical analysis, industry analysis, sociology, conflict resolution, project management theory and practice, management, legal systems, psychology, financial risk, production management, health safety and environment, research methods, factor and component analysis
Topics: Stakeholder Management, Cost Management, Research Practice, Organizational Design, Human Resources, Health and Safety, Project Management, Legal Issues
Descriptive scope: 5 PCTEA

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