Relationship quality in construction projects: A subcontractor perspective of principal contractor relationships

Publisher:
Elsevier BV
Publication Type:
Journal Article
Citation:
International Journal of Project Management, 2021, 39, (6), pp. 633-645
Issue Date:
2021-08-01
Full metadata record
One of the defining characteristics of the construction industry is its subcontracting model of project organisation. Surprisingly, despite the criticality of the subcontractor/principal contractor relationship to successful project outcomes, research into this important relationship has been fragmented, disorganised and under-theorised. Mobilising theories of relationship quality to address this gap in knowledge, a survey of three hundred and thirty seven tier-one subcontractors in the Australian construction industry was undertaken to explore what factors influence relationship quality between subcontractors and principal contractors, whether these factors vary across the supply chain and how they affect overall relational satisfaction. The findings give subcontractors a missing voice in this important debate and provide a more nuanced understanding of this critical project relationship from a novel theoretical perspective. They indicate that from a subcontractor perspective, subcontractor/principal contractor relationship quality is determined by six key factors: integrity respect and fairness; prompt payment; willingness to negotiate risk and price; effective communication; concern for worker health, safety and well-being; and opportunities for early involvement in planning and design. Conceptually, when these factors are organised under the three dimensions of relationship quality theory (trust, satisfaction, and commitment), the results show that trust is by far the most important determinant of relationship quality. However, subcontractors cannot be treated as a homogeneous group and the factors that influence relationship quality and the importance of trust vary significantly between large and small subcontractors and by the amount of turnover-dependency in a relationship. Conceptually, the findings are important for refining the concept of relationship quality in a project management context and for helping construction project managers to improve often tenuous subcontractor relationships in an increasingly competitive industry where the quality of these relationships is a critical determinant of project outcomes and competitive advantage.
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