Psychological Contracts: Framework for Relationships in Construction Procurement

Abstract

The existence of psychological contracts (PC) in construction procurement is examined. Specific objectives are to identify the presence of the PC in construction project teams and catalogue its effect on procurement delivery. A survey instrument designed with the assistance of two focus groups and subsequently administered to a purposive sample of experienced construction/engineering managers identified unique attributes of significance. Two further focus groups helped develop a conceptual model of PC for construction of a more generalizable nature. Findings suggest PCs are present in construction delivery teams. Antecedent enabling factors, referred to as relational conditions and benefits that form unwritten agreements and unwritten contracting behaviors, are found, which consequently affect team satisfaction. For the professional, advances in knowledge are identified in the new model where factors of trust, commitment, and good faith and fair dealing are described as components of the PC in construction. Revealing these less tangible characteristics of construction management in the PC serves to provide the professional with a novel framework from which to anchor their understanding of procurement teams and enhance their decision-making capability.