I trust you, I trust you not: A longitudinal study of control mechanisms in incentive contracts

Badenfelt, U (2010) I trust you, I trust you not: A longitudinal study of control mechanisms in incentive contracts. Construction Management and Economics, 28(3), pp. 301-310. ISSN 1466433X

Abstract

The relationship between trust and control in client-contractor interactions is explored, focusing on the control mechanisms used in a construction project. A longitudinal case study of a large laboratory construction project found that the client used a variety of control mechanisms to ensure that the contractor behaved trustworthily. Empirical data were gathered through interviews and non-participant observation. The results indicate that the use of control mechanisms is part of a complex and dynamic socially constructed process that requires ongoing discussion and evaluation, and to which informal control mechanisms are central. Business relationships built solely on trust are seemingly rare; even in trust-based collaborative settings, such as partnering arrangements; the contracting parties must pay attention to trust-nurturing actions.

Item Type: Article
Uncontrolled Keywords: control mechanisms; longitudinal study; partnering arrangements; target cost contracts; trust
Index terms: partnering, interaction, observation, incentive contract, contracting party, target cost, construction project, interview, laboratory, business relationship, case study
Subjects: data collection methods, practitioner, strategic management, partnership management, behavioral psychology, contractual arrangements, production management, economics, research management
Topics: Cost Management, Project Management, Stakeholder Management, Business Strategy, Roles and Professions, Procurement, Research Practice
Descriptive scope: 3 PCE

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