Key relational contracting practices affecting performance of public construction projects in China

Ling, FYY; Ke, Y; Kumaraswamy, MM; Wang, S

Key relational contracting practices affecting performance of public construction projects in China

Ling, FYY Ke, Y

Kumaraswamy, MM Wang, S

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Publication Type:: Journal Article
Citation:: Journal of Construction Engineering and Management, 2014, 140 (1)
Issue Date:: 2014-01-01

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Field	Value	Language
dc.contributor.author	Ling, FYY	en_US
dc.contributor.author	Ke, Y https://orcid.org/0000-0003-3426-703X	en_US
dc.contributor.author	Kumaraswamy, MM	en_US
dc.contributor.author	Wang, S	en_US
dc.date.issued	2014-01-01	en_US
dc.identifier.citation	Journal of Construction Engineering and Management, 2014, 140 (1)	en_US
dc.identifier.issn	0733-9364	en_US
dc.identifier.uri	http://hdl.handle.net/10453/122468
dc.description.abstract	Relational contracting (RC) is based on the recognition of mutual benefits and win-win scenarios that are achieved through more cooperative relationships among the contracting parties in a project. Although RC principles are less difficult to apply in private-sector projects, it has not been established whether public-sector projects can enjoy the full benefits of RC. This study aims to investigate the effective RC practices that are found in China's public construction projects. The specific objectives are to (1) evaluate project performance levels in terms of cost, time, quality, and client satisfaction; (2) investigate the extent to which RC practices were adopted; and (3) identify the RC practices that lead to better performance. Because of the large geographical area of China, the surveys conducted were confined to Beijing and Hong Kong only. A structured questionnaire was designed to collect qualitative data. The results show that (1) public construction projects achieved significant success in quality performance and client satisfaction, but not in budget and schedule performance; and (2) RC practices were adopted to varying extents in public projects. The findings contribute to knowledge by identifying the specific RC practices that could boost project performance significantly. Another contribution to knowledge is the discovery that the relational contract theory is applicable to public projects notwithstanding the need to keep relations at arm's length. A framework to manage public projects using the RC approach is recommended for adoption in Hong Kong and other countries that adopt project management style along the Project Management Institute's framework. A different framework is recommended for adoption in Beijing and places that have a centrally planned and controlled economic system so as to help public projects achieve better project performance. © 2014 American Society of Civil Engineers.	en_US
dc.relation.ispartof	Journal of Construction Engineering and Management	en_US
dc.relation.isbasedon	10.1061/(ASCE)CO.1943-7862.0000781	en_US
dc.subject.classification	Building & Construction	en_US
dc.title	Key relational contracting practices affecting performance of public construction projects in China	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	140	en_US
utslib.for	1202 Building	en_US
utslib.for	0905 Civil Engineering	en_US
utslib.for	1504 Commercial Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
utslib.copyright.status	open_access
pubs.issue	1	en_US
pubs.publication-status	Published	en_US
pubs.volume	140	en_US

Abstract:

Relational contracting (RC) is based on the recognition of mutual benefits and win-win scenarios that are achieved through more cooperative relationships among the contracting parties in a project. Although RC principles are less difficult to apply in private-sector projects, it has not been established whether public-sector projects can enjoy the full benefits of RC. This study aims to investigate the effective RC practices that are found in China's public construction projects. The specific objectives are to (1) evaluate project performance levels in terms of cost, time, quality, and client satisfaction; (2) investigate the extent to which RC practices were adopted; and (3) identify the RC practices that lead to better performance. Because of the large geographical area of China, the surveys conducted were confined to Beijing and Hong Kong only. A structured questionnaire was designed to collect qualitative data. The results show that (1) public construction projects achieved significant success in quality performance and client satisfaction, but not in budget and schedule performance; and (2) RC practices were adopted to varying extents in public projects. The findings contribute to knowledge by identifying the specific RC practices that could boost project performance significantly. Another contribution to knowledge is the discovery that the relational contract theory is applicable to public projects notwithstanding the need to keep relations at arm's length. A framework to manage public projects using the RC approach is recommended for adoption in Hong Kong and other countries that adopt project management style along the Project Management Institute's framework. A different framework is recommended for adoption in Beijing and places that have a centrally planned and controlled economic system so as to help public projects achieve better project performance. © 2014 American Society of Civil Engineers.

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http://hdl.handle.net/10453/122468