Are relational contracting principles applicable to public construction projects?

Abstract

The need for relational contracting in the construction industry is high because of the barriers arising from its highly fragmented nature. While relational contracting principles are less difficult to apply in private sector projects, it is not known if public sector projects can enjoy the full benefits of relational contracting. This paper aims to provide answers to this question. Difficulties of implementing relational contracting principles in public construction projects were firstly discussed. A theoretical framework including a basic model, an integrated stakeholder network, and three categories of measurement items were then identified. Although the theoretical framework and accompanying hypotheses are still required to be tested by a following survey, the proposed findings would guide the application of relational contracting in public projects, thus contributing to better relationships in the construction contracting environment, and thereby boosting project outcomes.