Identification of Trust-Repair Strategies and Their Effectiveness in the Chinese Construction Industry

Abstract

Trust is regarded as an important governance mechanism for subcontracting in the construction industry. However, trust is also vulnerable and fragile. After trust is built, trust is not necessarily maintained throughout a project. Thus, after trust is violated, it is important to repair trust to sustain the role of trust. This study aimed at finding trust-repair strategies and their effectiveness between contractors and subcontractors in China through 19 in-depth interviews. This study found that subcontractors’ trust-repair strategies included show of positive attitude, immediate action, self-justification, denial and excuses, correction and penance, and apology. Contractors’ trust-repair strategies included promise, paying a part of the progress payment, and paying off the progress payment in arrears. Immediate action, correction and penance, and paying off the progress payment in arrears were effective trust-repair strategies. This study develops the theory of trust repair in the construction industry and provides information to support decision making by contractors and subcontractors to better repair and maintain trust.