Comparative study of drivers of and barriers to relational transactions faced by public clients, private contractors and consultants in public projects

Abstract

Relational transactions can bring about good project outcomes. However, public projects in which different parties hold differential attitudes toward the adoption of relational transactions would likely encounter more uncertainties which may affect the implementation of such relational transactions. This paper aims to compare different parties' (i.e., clients, contractors and consultants) perceptions of the factors motivating and deterring relational transactions in public projects. The results of a questionnaire survey of 104 public projects in Singapore show that 21 drivers could significantly motivate each party to adopt relational transactions; and three parties' perceptions of the importance of the drivers are not significantly different. The topmost driver for each party to adopt relational transactions is the aim of achieving safety performance. The results also show that: (i) the three parties regarded public sector accountability, bureaucracy and stringent rules, regulations and laws as the most serious barriers; (ii) the biggest challenge to adopting relational transactions stems from the public sector client, followed by private sector consultants; and (iii) contractors face the least number of barriers. The measures to ameliorate the barriers to relational transactions are recommended. © 2013 Elsevier Ltd.