Boosting Public Construction Project Outcomes through Relational Transactions in Singapore

Abstract

Drawing upon the Relational Contracts theory and the theory of Network Embeddedness, this study investigated: the relational transaction practices leading to better performance; and the drivers of and barriers to relational transactions in public projects.

A questionnaire-survey of 104 public projects was initially conducted, and the main statistical results obtained were thereafter validated by the qualitative information gathered from eight interviews.

The results showed that public projects could benefit from relational transactions; information sharing gives rise to better relationships; and good relationships further contribute significantly to project outcomes. The results also revealed that the adoption of relational transactions in public projects is significantly motivated by 21 drivers but deterred by 15 barriers.

This study contributes to the knowledge of public project management by showing that both the theory of Network Embeddedness and the Relational Contracts theory are applicable to public construction projects.