Walker, A and Kwong Wing, C (1999) The relationship between construction project management theory and transaction cost economics. Engineering, Construction and Architectural Management, 6(2), pp. 166-176. ISSN 0969-9988
Abstract
The process of managing the design and construction of a project on behalf of a client may be analysed using project management theory based on a contingency approach. The analysis provided by this approach, whilst useful for understanding the interaction of the parts of the system, the functions of project management and the effectiveness of the organization structure, may be limited by not incorporating an economic explanation of how a project organization structure is chosen. The transaction cost approach to the study of economic organization may provide a theoretical basis for such an explanation. This approach holds that an understanding of transaction cost economizing is central to the study of organizations as it determines whether functions are provided by the market or by hierarchy. This paper seeks to explore the relationship between these two powerful approaches in explaining the structuring and management of project organizations on behalf of clients and to explain the benefits of combining these approaches in furthering construction project management theory.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | client; consultant; contractor; project management theory; system approach; transaction cost |
| Index terms: | interaction, project management, effectiveness, design and construction, construction project management, project organization, contingency approach, transaction cost |
| Subjects: | financial analysis, behavioral psychology, performance management, project management theory and practice, organizational theory, contractual arrangements, organization |
| Topics: | Quality Management, Organizational Design, Project Management, Research Practice, Cost Management, Procurement |
| Descriptive scope: | 3 PCT |
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