Drivers and barriers to adopting relational contracting practices in public projects: Comparative study of Beijing and Sydney

Ling, FYY; Ong, SY; Ke, Y; Wang, S; Zou, P

Drivers and barriers to adopting relational contracting practices in public projects: Comparative study of Beijing and Sydney

Ling, FYY Ong, SY Ke, Y

Wang, S Zou, P

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Publication Type:: Journal Article
Citation:: International Journal of Project Management, 2014, 32 (2), pp. 275 - 285
Issue Date:: 2014-01-01

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Field	Value	Language
dc.contributor.author	Ling, FYY	en_US
dc.contributor.author	Ong, SY	en_US
dc.contributor.author	Ke, Y https://orcid.org/0000-0003-3426-703X	en_US
dc.contributor.author	Wang, S	en_US
dc.contributor.author	Zou, P	en_US
dc.date.issued	2014-01-01	en_US
dc.identifier.citation	International Journal of Project Management, 2014, 32 (2), pp. 275 - 285	en_US
dc.identifier.issn	0263-7863	en_US
dc.identifier.uri	http://hdl.handle.net/10453/66573
dc.description.abstract	When contracting parties adopt relational contracting (RC) as opposed to formal contracting stance, the construction project may achieve good outcomes. However, public projects usually face more constraints in adopting RC, as close relationships may lead to allegations of corruption. The aim of this study is to undertake a comparative analysis of drivers and barriers to adopting RC practices in public construction projects in two different markets viz. a centrally planned economy and a free market economy by investigating practices in Beijing and Sydney. The survey research design was adopted and data of public construction projects in Beijing and Sydney were collected using a structured questionnaire. The results revealed that relationship quality and level of harmony among contracting parties are significantly good in both cities. In Sydney, the level of inter-personal relations between contractors and consultants is significantly higher than in Beijing. It was found that the same 18 factors drive contracting parties in Beijing and Sydney to adopt RC practices, and in 6 instances, these are significantly greater drivers in Sydney. The barriers to adopting RC practices are totally dissimilar in both cities. Contracting parties in Beijing could not adopt more RC practices because of a lack of training in relational arrangement and public clients lack initiative in adopting RC practices. The conservative industry culture that encourages preservation of the status quo is also prevalent in Beijing. In Sydney, the only significant barrier is public sector accountability concerns. To cultivate readiness to embrace RC practices, it is suggested that industry professionals and the government adopt recommendations highlighted in this study according to the type of market structure. © 2013 Elsevier Ltd and APM IPMA.	en_US
dc.relation.ispartof	International Journal of Project Management	en_US
dc.relation.isbasedon	10.1016/j.ijproman.2013.04.008	en_US
dc.subject.classification	Building & Construction	en_US
dc.title	Drivers and barriers to adopting relational contracting practices in public projects: Comparative study of Beijing and Sydney	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	32	en_US
utslib.for	120201 Building Construction Management and Project Planning	en_US
utslib.for	12 Built Environment and Design	en_US
utslib.for	15 Commerce, Management, Tourism and 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	2	en_US
pubs.publication-status	Published	en_US
pubs.volume	32	en_US

Abstract:

When contracting parties adopt relational contracting (RC) as opposed to formal contracting stance, the construction project may achieve good outcomes. However, public projects usually face more constraints in adopting RC, as close relationships may lead to allegations of corruption. The aim of this study is to undertake a comparative analysis of drivers and barriers to adopting RC practices in public construction projects in two different markets viz. a centrally planned economy and a free market economy by investigating practices in Beijing and Sydney. The survey research design was adopted and data of public construction projects in Beijing and Sydney were collected using a structured questionnaire. The results revealed that relationship quality and level of harmony among contracting parties are significantly good in both cities. In Sydney, the level of inter-personal relations between contractors and consultants is significantly higher than in Beijing. It was found that the same 18 factors drive contracting parties in Beijing and Sydney to adopt RC practices, and in 6 instances, these are significantly greater drivers in Sydney. The barriers to adopting RC practices are totally dissimilar in both cities. Contracting parties in Beijing could not adopt more RC practices because of a lack of training in relational arrangement and public clients lack initiative in adopting RC practices. The conservative industry culture that encourages preservation of the status quo is also prevalent in Beijing. In Sydney, the only significant barrier is public sector accountability concerns. To cultivate readiness to embrace RC practices, it is suggested that industry professionals and the government adopt recommendations highlighted in this study according to the type of market structure. © 2013 Elsevier Ltd and APM IPMA.

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http://hdl.handle.net/10453/66573