Research on Contract Governance in the Field of Project Management

The construction industry has suffered from low productivity for many years. Some scholars asserted that the failure understood contract is one of the major causes. Cognition of the contract makes the different contract type classification and contract strategy. The traditional contract paradigm belongs to cognition of the contract from a legal perspective. The traditional contract strategy transfers risks to to the weakest member. This is not the best, as it creates an adversarial relationship and leads to poor performance. Relational contracting is the suitable strategy for the project, but it may not be enough relationship for a one-off project. How to foster a cooperative relationship needs to be further investigated. Relational contract theory is developed from the western individual society. In the eastern collectivism, there may be different contract governance routines. So, how to match contract governance strategy with culture is another research point.