Empirical Study on the Relationship between Owner-Contractor Conflict and Schedule Performance in Design-Bid-Build Projects

Due to the complexity, multi-objectives and integration of construction projects, conflict between the owner and contractor is inevitable. The interactionist view of conflict encourages the organization to maintain a minimum level of conflict - enough to promote organization communication and creativity. Design-Bid-Build (DBB) is a traditional project delivery system, still widely used in construction industry, and conflict in DBB projects is quite common. Therefore, this research empirically validates the relationship between owner-contractor conflict and schedule performance in DBB projects. Through questionnaire survey, 90 valid data were obtained with the participation of managers from the Chinese Top 100 contracting enterprises and mega-project owners with rich project management experience. The hypothesis was tested using correlation analysis and non-linear regression analysis. The results reveal that the owner-contractor conflict in DBB projects influences the project schedule performance with an inverted U-shaped relationship. A moderate level of owner-contractor conflict in DBB projects could promote communication among project participants, improve the quality of decision making, and stimulate creativity and innovation, thus improving the schedule performance. However, too many conflicts will reduce organization effectiveness and cohesiveness, which make it difficult to complete the project in time. To reach an optimum level of schedule performance, project managers should alter their traditional prejudice towards conflict as a negative factor, and manage the conflict strategically rather than simply eliminate it.