IMPLICATIONS OF FAIRNESS ON PROJECT OUTCOMES

Abstract

In all construction projects, not limiting to those in Singapore, multiple parties from different organisations would be involved in the project. Each with their own intent to maximise profits and gains, and little consideration is given towards the fair treatment of others, or how it affects project performance and outcomes. This study investigates the association between fairness and project outcomes.

Through the use of a survey questionnaire, responses from professionals within the construction industry of Singapore were collected and analysed to identify the underlying relationship and influence between project fairness and its outcomes. Project outcomes are measured in several ways. Traditional quantitative project performance indicators were measured and presented in terms of time, cost, and quality outcomes. Qualitative project outcomes such as teamwork, engagement and trust are measured on a 7-point scale. The extent to which practices relating to fairness (such as being treated with politeness, dignity and respect, opinions being valued and being kept informed of decisions) were also investigated.

The results show poor cost and time performance, and quality performance being neutral. As for fair treatment, the respondents are generally neutral (neither highly satisfied, nor highly dissatisfied) about the way they are being treated in their projects. The analysis of the association between fairness and project outcomes are done within 5 categories of fairness. (1) Individual fairness, (2) communication fairness, (3) fairness in being consulted, freedom and respect, (4) fairness in the risk and rewards, and (5) fairness in the distribution of risks and rewards. The study also shows that there are at least 4 variables of fairness in each of their categories that are significantly correlated to project outcomes. Out of the 29 fairness variables, 23 are significantly associated with at least 1 of the 22 project outcomes.

The study has achieved its objective of ascertaining the presence of an association between fairness and the outcomes of construction projects in Singapore. It is found that the level of inter-organisational fairness and justice rendered during a construction project has an influence and impact over the project’s performance and outcomes. The findings inform project owners and developers that they need to place a greater emphasis on higher levels of fairness when dealing with project participants as this would help their projects achieve better performance and outcomes.