Effect of adoption of relational contracting practices on relationship quality in public projects in Singapore

Ling, F Y Y; Tan, P C; Ning, Y; Teo, A and Gunawansa, A (2015) Effect of adoption of relational contracting practices on relationship quality in public projects in Singapore. Engineering, Construction and Architectural Management, 22(2), pp. 169-189. ISSN 0969-9988

Abstract

Purpose - The purpose of this paper is to investigate relational contracting (RC) practices that give rise to higher quality interpersonal relations between these pairs of stakeholders at the end of public projects: clients and contractors; contractors and consultants; and clients and consultants. It developed models to predict the level of quality of interpersonal relations between the stakeholders at the completion of public projects. Design/methodology/approach - Using a set of questionnaire, data were collected from randomly selected construction industry practitioners who have had experience in public projects in Singapore. The data were analysed to identify association between the use of RC practices and quality of interpersonal relations between stakeholders. In-depth interviews with experts were conducted. Findings - It was found that when certain RC practices were adopted to a larger extent, public projects also have significantly higher quality of interpersonal relations between clients, contractors and consultants. Three mathematical models were developed to predict the relationship quality between stakeholders at the end of the public project. Research limitations/implications - The limitations include the subjective nature of the Likert scale that was used in answering the questionnaire survey and the limited number of interviews. The effect of existing good relations among stakeholders was not taken into account. Practical implications - Suitable RC practices for adoption by public clients, contractors and consultants in public projects are recommended. These include developing deeper mutual trust and understanding, sharing project information, and having real gain-share/pain-share among contracting parties. Originality/value - RC practices that are significantly associated with relationships among contracting parties in public projects in Singapore are uncovered. Contracting parties may use the recommendations to help enhance their relationships with one another in a public project.

Item Type: Article
Uncontrolled Keywords: performance; contracts; public sector organizations; private sector organizations; collaboration; social interaction
Index terms: contracting party, pain, Singapore, relational contracting, social interaction, public client, construction industry, survey, public sector organization, mathematical model, interview, private sector organization, questionnaire, Likert scale, practitioner, collaboration, public project, methodology
Subjects: contractual arrangements, mathematical modelling, organization, data collection methods, practitioner, health conditions and diseases, sociology, administrative law, industry analysis, research methods, management, infrastructure engineering, Geography
Topics: Legal Issues, Organizational Design, Business Strategy, Health and Safety, Geographical Context, Research Practice, Engineering Principles, Roles and Professions, Stakeholder Management, Procurement
Descriptive scope: 5 PCTEA

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