Building a relational contracting culture and integrated teams

Abstract

Targeting integration in construction, this study compares the suitability of various factors and strategies to provide suitable contractual and noncontractual incentives for building a relational contracting (RC) culture and fostering effective teamwork. Results from statistical analyses of 96 questionnaire responses from Singapore contractors, consultants, and clients are presented. Despite obvious differences in perceptions among different groups of respondents on the relative usefulness of individual factors, it was observed that trust should broadly be at the core of RC and team-building. Although some factors appear to be more important than others, the overall results indicate that Singaporean industry participants prefer to target integration in construction through (i) trust-based contractual and operational arrangements and (ii) extended use of relational qualities in team selection for postcontract partnering-type RC arrangements between clients and contractors. The results also suggest the need for an interrelated and consolidated approach, both for propagating RC and for building integrated project teams. Like many other countries, the results indicate the readiness of Singaporean industry participants to incorporate RC and team-building techniques in a move towards improved performance and value for money. The results may be applicable to other countries or contracting regimes, especially where the practice of RC is at an early stage. Outcomes of this study are expected to benefit both industry practitioners and researchers in exploring, designing, and implementing suitable contractual and noncontractual incentives. © 2007 NRC Canada.