Measuring Constructs of Relational Contracting in Construction Projects: The Owner’s Perspective
Publication: Journal of Construction Engineering and Management
Volume 142, Issue 10
Abstract
Traditional project design and construction delivery is segmental. Researchers and practitioners often cite the separation, or “silo effect,” as a reason for poor project outcomes. In response, new forms of integrated contracts have emerged, fostering more collaborative efforts and a focus on successful project outcomes, instead of individual organizational outcomes. Relational contract theory provides a basis for understanding these new integrated forms of agreement through a set of relational contracting norms. This study operationalizes the relational contracting norms designed to measure project integration. The norms and their dimensions were developed through a rigorous construct mapping methodology and then tested, analyzed, and validated with a survey of owners and owners’ representatives from 314 completed projects using exploratory and confirmatory factor analyses. The study validates the measures and demonstrates the potential that the measures have to illuminate the nature of relational contracting in construction project teams. The validated scales can be used in future research to better understand when and how contracts influence integration and project performance.
Get full access to this article
View all available purchase options and get full access to this article.
References
AIACC (American Institute of Architects, California Council). (2007). “Integrated project delivery: A guide.” Sacramento, CA.
AIACC (American Institute of Architects, California Council). (2010). “Integrated project delivery: Case studies.” Sacramento, CA.
Akintoye, A., and Main, J. (2007). “Collaborative relationships in construction: The U.K. contractors’ perception.” Eng. Constr. Archit. Manage., 14(6), 597–617.
Alashwai, A., and Fong, P. (2015). “Empirical study to determine fragmentation of construction projects.” J. Constr. Eng. Manage., 04015016.
Baiden, B., Price, A., and Dainty, A. (2006). “The extent of team integration within construction projects.” Int. J. Project Manage., 24(1), 13–23.
Bergeron, A. (2008). “Early contractor involvement eyed.” Eng. News Rec., 261(12), 15.
Cannon, J., Achrol, R., and Gundlach, G. (2000). “Contracts, norms, and plural form governance.” J. Acad. Marketing Sci., 28(2), 180–194.
Cheung, S., Yiu, K., and Chim, P. (2006). “How relational are construction contracts?” J. Prof. Issues Eng. Educ. Pract., 48–56.
Churchill, G. (1979). “A paradigm for developing better measures of marketing constructs.” J. Marketing Res., 16(1), 64–73.
Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approaches, 3rd Ed., Sage, Thousand Oaks, CA.
Egan, S. J. (2002). Accelerating change: A report by the strategic forum for construction, Strategic Forum for Construction, London.
El Asmar, M., Hanna, A., and Loh, W. (2013). “Quantifying performance for the integrated project delivery system as compared to established delivery systems.” J. Constr. Eng. Manage., 04013012.
Fabrigar, L. R., and Wegener, D. T. (2012). Exploratory factor analysis, Oxford University Press, New York.
Forbes, L. H., and Ahmed, S. M. (2011). Modern construction: Lean project delivery and integrated practices, CRC Press, Taylor and Francis Group, Boca Raton, FL.
Garson, G. (2013). Validity and reliability, Statistical Associates Publishers, Asheboro, CA.
Gerbing, D., and Anderson, J. (1988). “An updated paradigm for scale development incorporating unidimensionality and its assessment.” J. Marketing Res., 25(2), 186–192.
Ghassemi, R., and Becerik-Gerber, B. (2011). “Transitioning to integrated project delivery: Potential barriers and lessons learned.” Lean Constr. J., 32–52.
Hair, J. F., Black, W. C., Babin, B. J., and Anderson, R. E. (2010). Multivariate data analysis, 7th Ed., Prentice Hall, Upper Saddle River, NJ.
Heide, J. B., and Miner, A. S. (1992). “The shadow of the future: Effects of anticipated interaction and frequency of contract on buyer-seller cooperation.” Acad. Manage. J., 35(2), 265–291.
Hu, L., and Bentler, P. (1999). “Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives.” Struct. Equ. Model., 6(1), 1–55.
Ibrahim, C., Costello, S., and Wilkinson, S. (2014). “Establishment of quantitative measures for team integration assessment in alliance projects.” J. Manage. Eng., 04014075.
Ibrahim, C., Costello, S., and Wilkinson, S. (2015). “A fuzzy approach to developing scales for performance levels of alliance team integration assessment.” J. Constr. Eng. Manage., 04014094.
Jöreskog, K. (2005). “Structural equation modeling with ordinal variables using LISREL.” 〈http://www.ssicentral.com/lisrel/corner.htm〉 (Feb. 20, 2014).
Kline, R. (2011). Principles and practice of structural equation modeling, 3rd Ed., Guilford Press, New York.
Kumar, N., Stern, L. W., and Anderson, J. C. (1993). “Conducting interorganizational research using key informants.” Acad. Manage. J., 36(6), 1633–1651.
Kumaraswamy, M., Ling, F., Rahman, M., and Phng, S. (2005). “Constructing relationally integrated teams.” J. Constr. Eng. Manage., 1076–1086.
Laan, A., Voordijk, H., and Dewulf, G. (2011). “Reducing opportunistic behaviour through a project alliance.” Int. J. Managing Proj. Bus., 4(4), 660–679.
Lahdenperä, P. (2012). “Making sense of the multi-party contractual arrangements of project partnering, project alliancing, and integrated project delivery.” Constr. Manage. Econ., 30(1), 57–79.
Latham, S. M. (1994). Construction the team—Industry review of procurement and contractual arrangements in the U.K. industry, Her Majesty’s Stationery Office, London.
Lichtig, W. (2006). “The integrated agreement for lean project delivery.” Constr. Lawyer Am. Bar Assoc., 26(3), 1–8.
LISREL version 9.1 [Computer software]. Scientific Software International (SSI), Skokie, IL.
Macneil, I. R. (1974). “The many futures of contracts.” Southern California Law Rev., 47(3), 691–816.
Macneil, I. R. (1980). The new social contract, Yale University Press, New Haven, CT.
Macneil, I. R. (1986). “Exchange revisited: Individual utility and social solidarity.” Ethics, 96(3), 567–593.
Macneil, I. R. (2000). “Contracting worlds and essential contract theory.” Social Legal Stud., 9(3), 431–438.
Matthews, O., and Howell, G. (2005). “An integrated agreement for lean project delivery: An example of relational contracting.” Lean Constr. J., 2(1), 46–61.
Messick, S. (1989). “Validity.” Education measurement, 3rd Ed., R. L. Linn, ed., Macmillan, New York, 13–104.
Miller, J., Garvin, M., Ibbs, C., and Mahoney, S. (2000). “Toward a new paradigm: Simultaneous use of multiple project delivery methods.” J. Manage. Eng., 58–67.
Ning, Y., and Ling, Y. (2013). “Boosting public construction project outcomes through relational transactions.” J. Constr. Eng. Manage., 04013037.
Nunnally, J., and Bernstein, I. (1994). Psychometric theory, McGraw-Hill, New York.
Oppenheim, A. N. (1992). Questionnaire design, interviewing, and attitude measurement, Pinter Publishers, London.
Podsakoff, P., MacKenzie, S., Lee, J., and Podsakoff, N. (2003). “Common method biases in behavioral research: A critical review of the literature and recommended remedies.” J. Appl. Psychol., 88(5), 879–903.
Post, N. (2011a). “An unprecedented 11 partners propel integrated project delivery at Sutter’s new California hospital.” Eng. News Rec., 267(8), 1–4.
Post, N. (2011b). “Pioneers push paradigm shift.” Eng. News Rec., 267(8), 38.
Rahman, M., and Kumaraswamy, M. (2004). “Potential for implementing relational contracting and joint risk management.” J. Manage. Eng., 178–189.
SPSS Statistics version 22 [Computer software]. IBM, New York.
Van Bruggen, G. H., and Lilien, G. L. (2002). “Informants in organizational marketing research: Why use multiple informations and how to aggregate responses.” J. Marketing, 39(4), 469–478.
Vieira, A. L. (2001). Interactive LISREL in practice: Getting started with a SIMPLIS approach, Springer, New York.
Williamson, O. E. (1979). “Transaction cost economic: The governance of contractual relations.” J. Law Econ., 22(2), 233–261.
Williston, S. (1920). The law of contracts, Baker, Voorhis and Company, New York.
Wilson, M. (2004). Constructing measures: An item response modeling approach, Lawrence Erlbaum Associates, Mahwah, NJ.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 142 • Issue 10 • October 2016
Copyright
© 2016 American Society of Civil Engineers.
History
Received: Jul 3, 2015
Accepted: Feb 23, 2016
Published online: Apr 26, 2016
Discussion open until: Sep 26, 2016
Published in print: Oct 1, 2016
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.