Measuring Constructs of Relational Contracting in Construction Projects: The Owner’s Perspective

Abstract

Traditional project design and construction delivery is segmental. Researchers and practitioners often cite the separation, or “silo effect,” as a reason for poor project outcomes. In response, new forms of integrated contracts have emerged, fostering more collaborative efforts and a focus on successful project outcomes, instead of individual organizational outcomes. Relational contract theory provides a basis for understanding these new integrated forms of agreement through a set of relational contracting norms. This study operationalizes the relational contracting norms designed to measure project integration. The norms and their dimensions were developed through a rigorous construct mapping methodology and then tested, analyzed, and validated with a survey of owners and owners’ representatives from 314 completed projects using exploratory and confirmatory factor analyses. The study validates the measures and demonstrates the potential that the measures have to illuminate the nature of relational contracting in construction project teams. The validated scales can be used in future research to better understand when and how contracts influence integration and project performance.