STRATEGIES TO IMPROVE PROJECT PERFORMANCE AND BUILD RELATIONSHIPS IN CHINA

Abstract

The features of successful project are on-time delivery, completion within budget, according to technical specifications and meeting the requirements of clients. In addition, construction projects involve various parties and different phases, building good relationships among team members are very important in Chinese organizations. In the context of China, the objectives of this study are to: (1) examine the performance outcomes of construction projects, in terms of time, cost and satisfaction; (2) examine how trust, relationship strength, competency of team members, communication and conflict management affect project performance; and (3) recommend strategies to be adopted to improve project performance and build good relationships among project team members. A questionnaire was designed based on the literature review. Data collection was done through face to face interviews and emails. Statistical Package for Social Science (SPSS) was used to analyze the 39 sets of data collected. The results show that a higher level of trust, strength relationship, competency and conflict management lead to a significant improvement to schedule performance and overall satisfaction, while no practices are significantly associated with cost performance. Recommendations are made to clients, consultants and contractors on effective strategies/practices to achieve project success and build good relationships in China. Clients are advised to make timely payment to ensure the smooth progress of the project; consultants are recommended to constantly monitor project progress; and contractors are strongly encouraged to improve their competency.