Construction contracting behaviours are the critical factors contributing to project success. Various procurement options have been designed to satisfy the needs of clients. The traditional approach is no longer common in construction. Procurement strategies assist decision maker to select appropriate procurement. Besides, understanding of contracting behaviour help to manage a construction project because it very much depends on the attitude of the people involved.

• The aggressive-cooperative drivers of construction contracting
• Catastrophic transitions of construction contracting behavior
• Behavioral transition: A framework for the construction conflict - tension relationship
• How relational are construction contracts?
• A catastrophe model of construction conflict behavior
• Effective partnering tools in construction: A case study on MTRC TKE contract 604 in Hong Kong
• Behavioural aspects of construction Partnering
• An analytical hierarchy process based procurement selection method
• Improving objectivity in procurement selection

Project: The aggressive-cooperative drivers of construction contracting

Author(s): Cheung S.O., Yiu T.W. and Chiu O.K.

Date: 2009

Source: International Journal of Project Management 27 (7), pp. 727-735

Abstract:
Construction contracting parties can take either a cooperative or aggressive stance in pursuing their goals. This paper aims at identifying the stimuli (known as drivers) that motivate cooperative or aggressive moves in construction contracting behavior (CCB). In this regard, a three-stage research work has been designed for the completion of the research objective. Based on literature reviews, aggressive and cooperative drivers were identified in the first stage. A questionnaire was designed to collect construction case-specific data on these drivers. Next, taxonomies of aggressive and cooperative drivers were developed by the use of principal component factor analyses (PCFA). A total of three and seven taxonomies for aggressive and cooperative drivers were identified respectively. These taxonomies enable the understanding of aggressive-cooperative nature of CCB in a more amenable and logical manner. With these taxonomies, factor scales were calculated to represent the relative importance of the respective taxonomies. The degree of significance of each factor scales was then evaluated in the third stage. The results showed that the most important cooperative taxonomy is 'openness of contracting parties', while the most important aggressive taxonomy is 'goal oriented'. The findings also suggest that construction projects may not be inherently adversarial. Contract with equitable risk allocation and open discussion of problems would provide the platform for team building so that relationship among contracting parties can be maintained.

Project: Catastrophic transitions of construction contracting behavior

Author(s): Cheung S.O., Yiu T.W., Leung A.Y.T. and Chiu, O.K.

Date: 2008

Source: Journal of Construction Engineering and Management 134 (12), pp. 942-952

Abstract:
The ways to manage a construction project very much depend on the attitude of the people involved. Collectively this is identified as construction contracting behavior (CCB). The CCB of the construction industry is adversarial as pinpointed in many industry-wide reviews. A more cooperative project delivery approach has therefore been advocated. In fact, drive for efficiency provides the incentive for cooperation. Nevertheless, members of a project team, in representing their respective organizations, are often in conflict. The dichotomous pair of cooperation and aggression forces therefore co-exist. It is not uncommon to note that CCB turns aggressive as the construction activities of a project intensify. This change is often sudden and thus matches well with the phenomenon of hysteresis described by the catastrophe theory (CT). It is hypothesized that the dynamics of CCB can be modeled by CT. The three-variable CT models include CCB (as dependent variable), cooperation forces (as normal factor) and aggression forces (as splitting factor). With data collected from a survey fitted by the Cuspfit program, it was found that trust intensity is an effective normal factor. Contract incompleteness and competitive inertia are splitting factors that trigger aggression.

Project: Behavioral transition: A framework for the construction conflict - tension relationship

Author(s): Yiu T.W. and Cheung S.O.

Date: 2007

Source: IEEE Transactions on Engineering Management 54 (3), pp. 498-505

Abstract:
Conflicts are inevitable in construction projects. One of the reasons is that all construction projects involve complex human interactions. Previous studies have shown that behavioral states can respond dynamically as the magnitude of a conflict increases. This has been empirically demonstrated using a catastrophe-theory-based, three-variable system involving the level of construction conflict, the level of tension, and the amount of behavioral flexibility. This paper reports on a study that examines the application of moderated multiple regression (MMR) to the three-variable system. It was found that not all MMR models display a significant moderating effect. Two out of six MMR models were found to be significant in their effect. These models affirm that the nature of the relationship between the degree of uncertainty and adversarial attitudes (or mistrust level) varies, depending on the behavioral flexibility of the parties.

Project: How relational are construction contracts?

Author(s): Cheung S.O., Yiu K.T.W. and Chim, P.S.

Date: 2006

Source: Journal of Professional Issues in Engineering Education and Practice 132 (1), pp. 48-56

Abstract:
The construction industry has relied on formal contracts to define and enforce the obligations and rights of contracting parties. Legal scholars have suggested that, based on their transaction characteristics, there are three different forms of contracts: classical, neoclassical, and relational. Of these, which form is more appropriate for use in construction projects? With increasing awareness of the importance of teamwork in construction, there is clear evidence of a rising trend in adopting a partnering approach to construction project delivery. For projects that seek to achieve a partnering relationship, relational contracts that value relationships, trust, and communication appear to be the appropriate form of contract. This paper discusses the application of relational contracts in construction by examining the fundamental question "How relational are construction contracts?" The degree of relationalism is assessed using a relational index comprising eight factors: cooperation, organizational culture, risk, trust, good faith, flexibility, the use of alternative dispute resolution, and contract duration. It was found that in the traditional design-bid-build form of delivery, the main contract and domestic subcontract forms are more relational than those of the nominated subcontract and the direct labor contract.

Project: A catastrophe model of construction conflict behavior

Author(s): Yiu K.T.W. and Cheung S.O.

Date: 2006

Source: Building and Environment 41 (4), pp. 438-447

Abstract:
Buildings are part of the built environment in which many activities are performed. One of the critical part of a development process is the physical construction of the proposed facility. As such an efficient construction process is invaluable. Moreover, due to the inherent divergence in interest, conflict among the contracting parties appears inevitable. Escalating conflict level may turn into psychological struggles between the contracting parties and manifests as dispute. The unfortunate outcomes are loss of productivity and increase in cost of construction. This paper describes the dynamic change in construction conflict behavior based on the catastrophe theory. How conflict behavior is affected by conflict level is first discussed. As such a catastrophe model of construction conflict behavior with tension level, behavioral flexibility as control variables is proposed. It is suggested that conflict is positively correlated to the tension level among the project team and subject to the moderating effect of the behavioral flexibility displayed by the project team members. The model suggests a sudden jump in conflict level will occur when tension reaches a threshold. Once this happens the conflict level will not subside even the tension level returns to the threshold just reached. The proposed model was tested by an empirical study that affirms: (1) The appropriateness of the use of tension and behavioral flexibility as control variables; (2) catastrophe model is a better fit to describe construction conflict behavior than the linear and logistic model; and (3) the bimodal nature of construction conflict behavior. The model reinforces the conventional wisdom of 'prevention is better than cure' as far as construction conflict resolution is concerned.

Project: Effective partnering tools in construction: A case study on MTRC TKE contract 604 in Hong Kong

Author(s): Bayliss R., Cheung S.O., Suen H.C.H. and Wong S.P.

Date: 2004

Source: International Journal of Project Management 22 (3), pp. 253-263

Abstract:
The use of a partnering approach to deliver construction projects seeks to avoid the confrontational setting where energy is used in a non-productive manner. Partnering calls for concerted effort from the project participants and aligns their often different and conflicting objectives. Reported partnering success stories are mostly descriptive. This paper reports a case study of a successful partnering venture in Hong Kong. The case study provides valuable information on how partnering was implemented by MTR Corporation Ltd., one of the pioneers in introducing partnering in the Hong Kong construction industry. Through interviews with the key contract participants and data collected throughout the contract period, the effective partnering tools were identified. It was found that the monthly partnering review meetings and the use of incentivisation underpinned the partnering success on the Tseung Kwan O Extension Contract 604.

Project: Behavioural Aspects of Construction Partnering

Author(s): Cheung S.O., Ng S.T., Wong S.P. and Suen Henry

Date: 2003

Source: International Journal of Project Management, 21 (5), pp. 333-343

Abstract:
Lack of cooperation has been identified as one of the major causes of inefficiency in the construction industry. Industry-wide studies have suggested the use of partnering as a way to promote co-operative contracting. This paper examines the behavioral aspect of the participants in construction partnering. In particular, the criticality of trust as a success factor for partnering is discussed. The main sources of mistrust in construction, including incompetence, failure of integrity and unworthy information are also identified. Data obtained from a case study on a major railway project in Hong Kong is used to illustrate the impact of the behavioral aspect. The case study also suggests that the tools used to implement partnering have positive effects on building trust by suppressing the sources of identified mistrust.

Project: An Analytical Hierarchy Process based procurement selection method

Author(s): Cheung S.O., Ip T.I., Leung M. Y. and Wan Y.W.

Date: 2001

Source: Construction Management and Economics, 19 (4), pp. 427-437

Abstract:
Procurement selection continues to be topical, and several advanced studies have been reported. One of the key concerns of procurement selection is how to enhance objectivity. A selection method developed using multi-attribute utility technology (MAUT) and the analytical hierarchy process (AHP) is proposed. With the input of industrial experts, critical procurement selection criteria and procurement strategies commonly used in Hong Kong were identified. Against these criteria, utility factors corresponding to various procurement strategies were then assigned by the experts to create a utility factor table. To cater for individual project characteristics, the relative importance weightings of the selection criteria were assessed using the analytical hierarchy process. Final selection was then based on the highest utility value derived from the procurement strategies, taking into account the relative importance of the selection criteria. The use of the model is illustrated with actual data.

Project: Improving objectivity in procurement selection

Author(s): Cheung S.O., Lam T.I, Wan Y.W. and Lam K.C

Date: 2001

Source: Journal of Management in Engineering, ASCE, 17 (3), pp. 132-139

Abstract:
Selecting a procurement strategy for construction projects is inherently subjective. The decision is often intuitively based on the previous experience and knowledge of the decision maker. An objective-subjective procurement selection method is proposed. The method takes into account the need to have an objective base for strategy comparison through the use of multi-attribute utility technology. Allowing the decision maker to assign importance ratings for the selection criteria also accommodates individual preferences and project specificities. The analytical hierarchical process based importance ratings assignment method improves both the objectivity and the reliability of the assessment. Applications in real cases suggest positive potential use of the method.

Dispute is inevitable in construction projects. Dispute causation was identified and used to determine the dispute likelihood in construction projects. In addition, a successful dispute settlement is directly associated with resolution process selection and resolution process. Factors affecting resolution satisfaction was then investigated.

• Are construction disputes inevitable?
• Convergent views of neutrals and users about alternative dispute resolution
• Mapping dispute resolution mechanism with construction contract types
• A multi-attribute utility model for dispute resolution strategy selection
• Mandatory use of ADR in construction - A fundamental change from voluntary participation
• Fundamentals of alternative dispute resolution processes in construction
• Critical factors affecting the use of alternative dispute resolution processes in construction
• Exploring the potential for predicting project dispute resolution satisfaction using logistic regression
• Factors affecting clients' project dispute resolution satisfaction in Hong Kong
• Project dispute resolution satisfaction classification through neural network

Project: Are construction disputes inevitable?

Author(s): Cheung S.O. and Yiu T.W.

Date: 2006

Source: IEEE Transactions on Engineering Management 53 (3), pp. 456-470

Abstract:
Many construction projects are of long-duration and high value and foreseeing and planning for every eventuality may be impossible. Engineers and managers are expected to solve problems surfacing during the execution stage. Moreover, problems blended with conflict are damaging and manifest as disputes. The authors suggested that construction dispute can be conceptualized as having three basic components: contract provisions, triggering events and conflict. This conceptualization fits nicely with fault tree (FT) framework that is used to evaluate system failures. Furthermore, through the use of a hypothetical case, a fuzzy FT model was employed to analyze the likelihood of construction dispute. This research suggested that complex project delivered in the traditional design then build approach, construction dispute are bound to appear.

Project: Convergent views of neutrals and users about alternative dispute resolution

Author(s): Cheung S.O., Suen H.C.H., Ng S.T. and Leung M.Y.

Date: 2004

Source: Journal of Management in Engineering, ASCE 20 (3), pp. 88-96

Abstract:
The success or failure of alternative dispute resolution (ADR) depends heavily on effective implementation, which in turn is founded on a good understanding of the principles and features of ADR. This paper reports a study on the features of ADR based on interviews with practitioners who have experience with using ADR in construction projects with a contract sum in excess of $HK10 million. The interviews were conducted with 20 accredited mediators/arbitrators of the Hong Kong International Arbitration Center (representing the neutrals) and 42 construction practitioners (representing the users). A total of 19 key features, identified and categorized in four categories - nature, neutral, settlement, and benefits - were prioritized according to their relative importance by using the analytical hierarchy process (AHP). The inconsistency ratio of the AHP helped ensure the reliability of the ranking scores mathematically. Six of the top eight features as ranked by the neutrals and the users are common to both groups. These are preservation of business relationship, enforceability, neutrality, cost to obtain, speed to obtain, and fairness. These suggest that the neutrals and users have similar expectations from ADR processes. The ranking also assists ADR process designers to focus on the fundamentals and avoid overly complicated processes.

Project: Mapping dispute resolution mechanism with construction contract types

Author(s): Cheung S.O.

Date: 2002

Source: Cost Engineering (Morgantown, West Virginia) 44 (8), pp. 21-29

Abstract:
Planning for dispute resolution is an integral part of construction contract planning. This article describes a framework to select a dispute resolution mechanism for use in different types of construction contracts. Employing the contract system classification suggested by I.R. Macneil, the relationship between contract systems and dispute resolution mechanisms is established. The transaction characteristic approach suggested by O.E. Williamson is used to map construction contracts into contract systems. The integration of contract systems, transaction characteristics, and dispute resolution mechanisms provides a framework to select a dispute resolution mechanism for use in construction contracts displaying transaction characteristics of varying degrees. The use of the framework is illustrated by an empirical study on four types of construction contracts.

Project: A multi-attribute utility model for dispute resolution strategy selection

Author(s): Cheung S.O. and Suen H.C.H.

Date: 2002

Source: Construction Management and Economics 20 (7), pp. 557-568

Abstract:
Disputes are inevitable in construction projects. Skills in dispute resolution should be part of the toolkit of any practitioner in a managerial position. Dispute resolution procedures such as litigation, arbitration, mediation, dispute adviser and negotiation are widely practiced. However, frequently the question is how to systematically determine which dispute resolution strategy to adopt given the nature of disputes. Even though the topic of dispute resolution has been widely discussed and heavily researched, few studies have been conducted with respect to this question. A decision-making model has been developed using the analytical hierarchy process (AHP) and multi-attribute utility technique (MAUT). The model comprises four parts: selection criteria, dispute resolution strategies, collection of utility factors and selection criteria weightings. These were developed from empirical data collected through an interview survey with selected experts in the field. The model is designed to identify in a systematic manner an appropriate dispute resolution strategy for a given dispute, rather than relying on subjective decisions. The model is tested using a hypothetical scenario in which three case studies are evaluated.

Project: Mandatory use of ADR in construction - A fundamental change from voluntary participation

Author(s): Cheung S.O.

Date: 2006

Source: Journal of Professional Issues in Engineering Education and Practice, ASCE 132 (3), art. no. 013603QPI, pp. 224

Abstract:
Presents an overview on the articles relating to the mandatory use of alternative dispute resolution techniques in the construction industry. Forms of dispute resolution; Main objective of the 2004 Singapore Building and Construction Industry Security of Payment act; Components of the suggested system for controlling cost of dispute resolution.

Project: Fundamentals of alternative dispute resolution processes in construction

Author(s): Cheung S.O., Suen H.C.H. and Lam T.I.

Date: 2002

Source: Journal of Construction Engineering and Management, ASCE 128 (5), pp. 409-417

Abstract:
With the surge of increasingly complex and fast-track construction projects, disputes are inevitable. Skills in dispute resolution should be part of the tool kit of any practitioner in a managerial position. The perceived shortcomings of litigation and arbitration, with their concomitant rise in costs, delays, and adversarial relationships, have encouraged the rapid growth of alternative dispute-resolution processes, namely, conciliation, mediation, adjudication, and other hybrid processes that have been widely used and well received by the Hong Kong construction industry. For example, mediation is now an integral part of most conditions of contracts published by the government of the Hong Kong Special Administration Region. However, the last decade evidenced the incorporation of increasingly complex dispute-resolution clauses in construction contracts, typically involving several alternative dispute resolution (ADR) techniques and arbitration arranged in sequential tiers. These dispute-resolution procedures render the supposedly more economic and speedy ADR process ineffective. In this study, a hierarchical model is developed to organize attributes of ADR processes. This presentation fits with the use of analytical hierarchy process methodology by a panel of experts to prioritize ADR process attributes. The top-ranked attributes identified as critical include, among others, preservation of relationships, enforceability, neutrality, and consensus. The experts also suggested means to establish these attributes. By focusing on these critical attributes, the dispute-resolution process can be kept simple and effective.

Project: Critical factors affecting the use of alternative dispute resolution processes in construction

Author(s): Cheung S.O.

Date: 1999

Source: International Journal of Project Management 17 (3), pp. 189-194

Abstract:
The use of Alternative Dispute Resolution (ADR) techniques in construction have gained great momentum in the public sector during recent years in Hong Kong. The Hong Kong Government has initiated the inclusion of ADR methods as an integral part of the dispute resolution procedure in the standard forms of contracts for use in Government projects. However, the use of ADR in the private sector has not been apparent, probably due to lack of experience and knowledge. This paper discusses the philosophies behind ADR and reports on an evaluative study on the critical attributes of ADR techniques. Two evaluation methods, scale rating and percentage rating, were employed to establish attribute importance rankings through soliciting views from practitioners with ADR experience. The attributes were then grouped into factors as extracted from Factor Analysis. The rankings of the factors so obtained from the two evaluative methods match well. The study reveals that users of dispute resolution processes are pragmatic and consider obtaining benefits as the most critical factor affecting the use of ADR in the construction industry in Hong Kong. Such benefits include cost minimisation and relationship preservation. It is also suggested that if ADR is to sustain its growth in use, these processes must facilitate a speedy resolution.

Project: Exploring the potential for predicting project dispute resolution satisfaction using logistic regression

Author(s): Cheung S.O., Yiu T.W. and Chan H.W.

Date: 2010

Source: Journal of Construction Engineering and Management, ASCE 136 (5), pp. 508-517

Abstract:
The success of a construction project depends on the coordinated efforts of project team members. This is especially crucial when a project is in dispute and hence the achievement of satisfactory project dispute resolution is critical to project success. This proposition has been empirically demonstrated a previous research that studied project dispute resolution satisfaction (DRS) using multivariate discriminant analysis (MDA). This paper reports on a study that builds on that research, with the specific aim of predicting project DRS through the use of logistic regression (LR). In this study, a LR model of project DRS (Model 1) is developed, and then compared with the MDA model. The findings suggest that the LR technique provides a higher hit rate and thus a higher proportion of correct classification. With the wider acceptance of the use of alternative dispute resolution (ADR) methods, the effect, on the LR model, of changing the demarcation between adverse and favorable project DRS is also examined. For this examination, another LR model (Model 2) was developed. It is believed that Model 2 may reflect the prevailing sentiment that ADR is viewed as an amicable way to resolve disputes. Both the MDA model and LR models (Model 1 and Model 2) indicated that "design changes" are the root cause of adverse project DRS. Within the scope of the project data, these findings suggest that design changes are not just disruptive to project progress but also a critical cause of construction disputes.

Project: Factors affecting clients' project dispute resolution satisfaction in Hong Kong

Author(s): Cheung S.O., Tam C.M., Ndekugri I. and Harris F.C.

Date: 2000

Source: Construction Management and Economics 18 (3), pp. 281-294

Abstract:
The use of project dispute resolution satisfaction (DRS) as a project success measurement responds to the increasing concern over the spread of the dispute epidemic within the construction industry in Hong Kong. The DRS of a project is considered as favourable where disputes are resolved within the site level. With the use of 48 project data sets and the technique of multivariate discriminant analysis, a discriminant model function was derived to classify projects into favourable DRS and adverse DRS. The multivariate discriminant analysis model function identified eight discriminating variables, among which the degree of design changes offered the highest separation power. The reliability of the discrminating variables was reinforced by a separate relative importance index study. Through the use of principal component factor analysis, these variables were grouped into three factors generically described as substantive influence, facilitation and indirect influence.

Project: Project Dispute Resolution Satisfaction classification through neural network

Author(s): Cheung S.O., Tam C.M. and Harris F.C.

Date: 2000

Source: Journal of Management in Engineering 16 (1), pp. 70-79

Abstract:
This paper presents an artificial neural network technique of analysis in determining the important factors affecting the outcome of construction dispute resolution processes in Hong Kong. Projects were classified as Favorable or Adverse in terms of Dispute Resolution Satisfaction in accordance with conventional professional practice for deciding on which disputes get resolved. The necessary historical project data sets were collected through structured interview and questionnaire surveys to provide the training details for the building of a Multi-Layer Perceptron artificial neural network. The preliminary analyses conducted indicated that resolution outcome depends on a combination of factors, namely, environment-, organization-, project-, and process-specific. The refinements to the network were achieved through reduction of the numbers of variables and processing elements. Verification of the `Best' network was achieved through the running of a batch function for stabilization. The optimal network so produced was applied to unseen data and achieved a 100% correct testing result for adverse DRS projects. The optimal network also identified design changes as the most critical factor, indicating that projects with a high degree of design changes were more likely to result in dispute requiring the service of alternative dispute resolution techniques or formalized proceedings.

Mediation is a form of assisted negotiation where a mediator plays a pivotal role in facilitating settlement. Therefore, mediator tactics and mediation outcomes have been studied extensively. Categorization on mediator tactics is the first step to analyze mediation so as to predict mediation outcomes.

• The construction mediation landscape in the Civil Justice System in Hong Kong
• Toward a typology of construction mediator tactics
• A study of construction mediator tactics-Part I: Taxonomies of dispute sources, mediator tactics and mediation outcomes
• A study of construction mediator tactics-Part II: The contingent use of tactics
• Logistic likelihood analysis of mediation outcomes

Project: The Construction Mediation Landscape in the Civil Justice System in Hong Kong

Author(s): Cheung S.O.

Date: 2010

Source: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, ASCE, 2 (3), pp. 169-174

Abstract:
Alternative dispute resolution techniques as means to speedily and economically resolve certain types of disputes have been well recognized. In this regard, some jurisdictions have opted to use mandatory adjudication to deal with construction, in particular payment-related disputes. The situation in Hong Kong is a bit different. The Government of the Hong Kong Special Administrative Region aspires to make Hong Kong a hub for arbitration and mediation services for the region. Voluntary mediation has been introduced in the civil procedures rules of the High Court as part of the newly launched Civil Justice Reform. Adverse cost order is used to discourage "refusal to mediate" and "failing to attempt to mediate." While the new measures that came into effect on April 2, 2009, sound sensible, a better picture on the actual impacts will unfold as more cases reach the Court. Nonetheless, the cost sanction may be able to make the voluntary use of mediation less voluntary.

Project: Toward a typology of construction mediator tactics

Author(s): Yiu T.W., Cheung S.O. and Cheung C.H.

Date: 2007

Source: Building and Environment 42 (6), pp. 2344-2359

Abstract:
The use of assisted negotiation plays a pivotal role in dispute settlement. Mediation is a notable example and has gained popularity because of the cost and time advantages. In a mediation, the tactics used by the mediator can be decisive. Construction has been described as a litigious industry and despite the vast numbers of mediation conducted, research on mediator tactics remains few. This paper reports a study directed at developing a typology of tactics used in construction mediation. Mediator tactics and mediation outcomes were firstly long listed from review of literatures. Data on the usefulness of tactics used and the outcome achieved were solicited from practicing mediator. Exploratory Factor Analysis (EFA) and Cluster Analysis (CA) were then used to identify the group structures. The grouping is further confirmed by a structural equation modeling (SEM) and provides a convenient platform for further research in construction mediation. The potential applications of the typology include effectiveness of construction mediator, behavior and strategic choice of tactics. Furthermore, with a typology of construction mediator tactics, the application can also be extended to study the responses of disputants respective to mediator tactics. It is believed that these applications are of both academic and practical value to the development of construction mediation

Project: A study of construction mediator tactics-Part I: Taxonomies of dispute sources, mediator tactics and mediation outcomes

Author(s): Cheung S.O. and Yiu K.T.W.

Date: 2007

Source: Building and Environment 42 (2), pp. 752-761

Abstract:
Constructed facilities are a major component of the built environment. Nevertheless, construction is of long-duration, high value and dispute-prone. As such, dispute is a regular feature in construction and consumes resources that would otherwise be used in a more productive manner. The use of mediation has been regarded as a flexible, cost-effective, and non-threatening way to dispute resolution. Reported studies on construction mediation have been instrumental in bringing out key success factors and the advantages over other adversarial resolution processes. Moreover, mediation is a form of assisted negotiation; hence the skill of a mediator shall have pivotal effect on the mediation outcome. In fact, the appropriate use of tactics by a mediator shall have deciding effect on the chance of success. Notwithstanding, the implication on tactics in relation to the nature of dispute cannot be discarded. In these contexts, a study that examines the inter-relationships among dispute sources, mediator tactics and mediation outcome was conducted in Hong Kong. The study is broadly divided into two parts. Part (I) deals with the development of taxonomies of construction dispute sources, mediator tactics and outcomes, employing the technique of Principal Component of Factor Analysis (PCFA). A total of eight, nine and four taxonomies for dispute sources, mediator tactics and outcomes were identified, respectively. Based on these results, Part (II) of the study examined the contingent use of mediator tactics in the contexts of dispute sources and mediation outcomes.

Project: A study of construction mediator tactics-Part II: The contingent use of tactics

Author(s): Yiu K.T.W. and Cheung S.O.

Date: 2007

Source: Building and Environment 42 (2), pp. 762-769

Abstract:
Mediation is a dynamic process. A mediator facilitates a settlement through the appropriate use of tactics that adapt and respond to the situational factors as the mediation progresses. This is described as the contingent use of tactics and is one of the prerequisites for mediation success. Having a better understanding of this contingent use of tactics is crucial to the practicing construction mediators as well as researchers. In the first of the companion papers, principal component factor analyses were employed to develop taxonomies for the three mediation dimensions; dispute sources, mediator tactics and mediation outcomes. Part II of the companion papers presents a study on the contingent use of mediator tactics in relation to the dispute sources and mediation outcomes. To achieve this objective, factor scales for the three mediation dimensions were first derived. Moderated multiple regressions (MMR) was then performed on these factor scales to detect the contingent effect of tactics on outcomes respective to the dispute sources. By examining the changes in the R2 values of the moderated regression equations, the effectiveness of tactics in bringing about the desired outcomes were investigated. The tactics of Trust Building and Reality Test were found to be the most versatile tactics. These reaffirm the industry belief that disputes are in fact problems that can be solved if pragmatic and sensible approaches are taken instead of the entrenched confrontational attitude. More significantly, the exercise of such approaches can only be possible in a trusting environment. These findings also add strength to the current endeavors in co-operative contracting as in partnering and strategic alliances.

Project: Logistic likelihood analysis of mediation outcomes

Author(s): Yiu T.W., Cheung S.O. and Mok F.M.

Date: 2006

Source: Journal of Construction Engineering and Management, ASCE 132 (10), pp. 1026-1036

Abstract:
Dispute persists in all building and construction projects. Alternative dispute resolution methods are now commonly used as a means to resolve construction disputes. Mediation, inter alia, is the popular choice in Hong Kong due to its cost-saving, flexible, speedy, confidential, and voluntary attributes. In mediation, tactics used by a mediator is central in driving desired outcomes. This paper reports a study that employs logistic regression (LR) to predict mediation outcomes respective to the tactics used. To achieve this, three main stages of work are involved. First, taxonomies of mediator tactics and mediation outcomes were developed. With these, the second stage included the development of logistic regression models each with a mediation outcome taxonomy as dependent variables and the taxonomies of tactics as independent variables. In the third stage of the study, the LR models were validated using an independent set of testing data. The LR models suggested that "win-win settlement," "progress," "improvement," and "time advantage" are responsive to mediator tactics of "ice-breaking," "trust building," "encourage for self-improve," and "process control," respectively. In addition, it is observed that these relationships are positively correlated.

Construction dispute negotiation studies typically assume free negotiation. It is believed that contract governance would influence negotiating behaviours. A negotiation online system was established to provide a systematic and structured approach in construction negotiation. Besides, negotiating tactics and outcomes directly correlates with negotiating styles.

• Exploring the influence of contract governance on construction dispute negotiation
• Construction negotiation online
• Withdrawal in construction dispute negotiation
• Application of Bandura's Self-efficacy Theory to examining the choice of tactics in construction dispute negotiation
• Construction project dispute negotiation: A conflict-trust mapping framework
• Contingent use of negotiator tactics in construction dispute negotiation
• Logistic regression modeling of construction negotiation outcomes
• A study of styles and outcomes in construction dispute negotiation

Project: Exploring the influence of contract governance on construction dispute negotiation

Author(s): Cheung S.O., Wong W.K., Yiu T.W. and Kwok T.W.

Date: 2008

Source: Journal of Professional Issues in Engineering Education and Practice 134 (4), pp. 391-398

Abstract:
The obligations and rights of the contracting parties are typically set out in the conditions of contract. The attempt to have a "water-proof" contract that caters to all eventualities has turned contracts into management manuals with detailed contractual procedures to deal with, inter alia, performance, changes, payment, approval, and dispute resolution. Contract disputes, therefore, have to be negotiated within the ambits of the contracts. This study revisits the assumption of free negotiation that underpins most conventional negotiation studies, i.e., negotiation is free with rational negotiators who can walk away from the negotiating table at will. Constraints imposed by a contract are collectively described as contract governance. With taxonomies developed through principal component factor analyses for contract governance (CG) and negotiating behaviors (NH), the influence of CG and NH is explored by a Pearson correlation analysis. In general, it was found that dominating and obliging behaviors are mostly influenced by CG while compromising behavior is the least influenced.

Project: Construction negotiation online

Author(s): Cheung S.O., Yiu K.T.W. and Suen, H.

Date: 2004

Source: Journal of Construction Engineering and Management 130 (6), pp. 844-852

Abstract:
Disputes are common in construction projects and negotiating disputes are part of the daily routine of project managers and contract administrators. The recent wave of information technology (IT) has a tremendous impact on the way businesses function. The construction industry is also undergoing major structural changes due to the effects of IT. This paper discusses the application of IT in construction dispute negotiation. Making use of the current IT technology, a computerized construction dispute negotiation program namely CoNegO (construction negotiation online) is proposed. CoNegO utilizes the SmartSettle software technology. With the built-in facilities of SmartSettle, it is possible to conduct negotiations online, hence removing geographical barriers between negotiators. SmartSettle was developed based on the concept of "Even Swaps" in which negotiators are required to evaluate possible options available on the basis of their relative importance. As construction disputes are characterized by multiple factors and dimensions, the problem fits nicely with the "trade-off" methodology that underpins Even Swaps. The use of CoNegO is illustrated by a simulated negotiation.

Project: Withdrawal in construction dispute negotiation

Author(s): Cheung, S.O., Chow, P.T.

Source: The Journal of Construction Engineering and Management, ASCE. (In Press)

Abstract:
A negotiation is doomed if a negotiator loses the desire to continue with the discussion and it is described as withdrawal (WA). Construction project disputes are content specific with resolution options governed by the contract, thus fitting neatly with the rationality framework. Nevertheless, failure in construction project dispute negotiation (CPDN) is not uncommon. The prospect of having a successful negotiation is hampered when behavioural factors creep in. This study aims to uncover the underlying factors affecting WA in CPDN from a behavioural perspective. The behavioural tradition of negotiation study identifies three behavioural primers: motivation (task vs. relation), cognition (emotion vs. rationality) and personality (competition vs. cooperation). With these, a relationship framework between WA and the three behavioural primers is proposed. With data collected from construction professionals in Hong Kong, the relationship framework is subjected to a confirmatory analysis by structural equation modelling (SEM). Emotion under the cognitive domain is found to be the most critical contributor to WA in CPDN. This finding reinforces the fact that negotiators should be good at the technical aspects of the dispute subject matter as well as being emotionally stable

Project: Application of Bandura's Self-efficacy Theory to examining the choice of tactics in construction dispute negotiation

Author(s): Yiu, T.W., Cheung, S.O. Siu, L. Y.

Source: The Journal of Construction Engineering and Management, ASCE (In Press)

Abstract:
The appropriate use of tactics can have a significant effect on dispute negotiation. This study aimed to investigate the confidence of negotiators in their own ability to successfully use tactics to achieve desired outcomes - a concept defined as "negotiation-efficacy" that underpins Bandura's self-efficacy theory. A questionnaire survey was used to measure the frequency of and confidence with which negotiators used negotiating tactics, and the achievement of negotiation outcomes. With the collected data, confidence indices were created to reflect the strength of negotiation-efficacy for each negotiating tactic. Relationships of negotiation-efficacy and the achievement of negotiation outcomes were then examined by multiple regression analyses. The findings show that the strength of negotiation-efficacy is significantly related to the achievement of certain negotiation outcomes. In general, for negotiators who have negotiation-efficacy in executing distributive (integrative) tactics, negative (positive) negotiation outcomes are likely. One of the key implications of these findings is that the study of negotiation-efficacy can serve as a test of reality to prevent negotiators from under- or overestimating the entire negotiation situation, and, most importantly, to increase the prospect of negotiation success.

Project: Construction project dispute negotiation: A conflict-trust mapping framework

Author(s): Cheung S.O., Chow P.T. and Cheng W.C.

Source: The International Journal of Project Organization and Management. (In Press)

Abstract:
Trust between negotiating parties has been identified to have a positive impact in achieving negotiated settlements. This study aims to test this proposition in the context of construction project dispute. To achieve this, bases of trust and conflict types are identified through literature review on the respective subjects. As a result, three trust bases: cognition, behaviour and affect are listed. Two major conflict types; C-Type and A-Type conflicts are translated into five construction project dispute scenarios. With these, five conflict-trust relationship frameworks are developed. With data collected from Hong Kong construction professionals, these frameworks are confirmed by structural equation modelling (SEM). Data sufficiency for SEM is augmented by bootstrapping analysis. Affect-based trust is found to be the most versatile while cognition-based trust is the least instrumental. Despite construction project disputes are content specific, the human aspect during negotiation cannot be under- estimated. It is also found that robust contract governance puts parties on a legality-trusting platform. The main message from this study is that negotiated settlements are more likely if the negotiating parties can establish common ground through effective information exchange - a situation where trust would prove to be instrumental.

Project: Contingent use of negotiator tactics in construction dispute negotiation

Author(s): Cheung S.O., Chow P.T. and Yiu T.W.

Date: 2009

Source: The Journal of Construction Engineering and Management, ASCE, 135 (6), pp. 466-476

Abstract:
In the course of negotiation, negotiators' tactics should be responsive to the situational factors. This is commonly described as the contingent use of negotiators' tactics. This study examines this concept in construction dispute negotiation and has three stages of work. Stage 1 develops taxonomies of the three construction dispute negotiation dimensions: dispute sources, negotiators' tactics, and negotiation outcomes by exploratory factor analysis. A structural equation modeling is also used to confirm the taxonomies. Stage 2 examines the contingent use of negotiators' tactics on outcomes respective to the dispute sources through the use of moderated multiple regression (MMR). Stage 3 discusses the findings. The dispute source, "Delay" is found to be a universal moderator in the MMR analysis of the tactic- outcome relationships. That means when the dispute source is delay, a wide range of negotiators' tactics can be used, respective to outcome intended. It is also found that the most versatile tactics are those that seek progress. This group of tactics is effective in almost every group of dispute source and, in general, positive results can be expected. However, aggressive and assertive tactics should be used restrictively, as they will only be useful against a compromising negotiation counterpart.

Project: Logistic regression modeling of construction negotiation outcomes

Author(s): Yiu T.W., Cheung S.O. and Chow, P.T.

Date: 2008

Source: IEEE Transactions on Engineering Management 55 (3), pp. 468-478

Abstract:
Construction disputes are always negotiated before other resolution methods are considered. When it comes to negotiation, the tactics used by a negotiator is central in deriving desired outcomes. This paper reports a research that employs logistic regression (LR) to predict the probabilistic relationship between negotiator tactics and negotiation outcomes. To achieve this, three main stages of work were involved. Negotiator tactics and negotiation outcomes were first identified from literature. Then, four LR prediction models with negotiation outcomes as the dependent variable and negotiator tactics as the independent variables were constructed. Finally, these models were validated with an independent set of testing data. These models collectively suggested that: 1) increasing time pressure, taking threats, or subjecting the opponent to reality testing are inductive to "deterioration" negotiation outcomes; 2) providing various options and increasing flexibility would achieve "substantial improvement" in negotiation; 3) relationships between parties could be maintained by fair play; and 4) focusing on information exchange, giving mid discussion summaries, and offering counterproposal could clarify a party's position. Despite the skepticism over frank and open discussion of the issues and the existence of game plan, the findings of this research do support some well-established negotiation principles-focus on the issue and play down behavioral factors.

Project: A study of styles and outcomes in construction dispute negotiation

Author(s): Cheung S.O., Yiu T.W.Y. and Yeung, S.F.

Date: 2006

Source: Journal of Construction Engineering and Management, ASCE 132 (8), pp. 805-814

Abstract:
The adversarial nature of the construction industry contributes to the germination and manifestation of construction disputes. Negotiation between the disputants is most often the first attempt in getting disputes resolved. During negotiation, personality characteristics of the disputants affect their behavior and thus the outcomes. Understanding the negotiating behaviors and negotiation outcomes is therefore of both academic and practical value. This paper reports such a study conducted with construction professionals in Hong Kong. The Rahim Organizational Conflict Inventory-II was used to measure the negotiating styles of construction professionals. Taxonomies of negotiation outcomes were developed through a principal component factor analysis. Three functional and four dysfunctional negotiation outcomes were identified. Based on these results, the relationships between the negotiating styles and negotiation outcomes were examined by the use of the multiple regression analyses. The findings suggested that the use of obliging, dominating, and avoiding styles are less influential in achieving functional negotiation outcomes. However, integrating negotiating styles is found to be useful to achieve functional outcomes and the use of comprising styles is a practical approach in resolving dispute. These findings are therefore supportive of the notion of the contingent use of negotiating styles.

Organizational culture is the manifestation of the basic assumptions, beliefs and behaviors shared by the members of an organization. It generally explains the working rules of an organization because it addresses the shared values and belief, hypothesizes the working guide, and shapes the managerial style and organizational behavior. Understanding organizational culture starts from the development of an organizational culture framework.

• Towards an organizational culture framework in construction

Project: Towards an organizational culture framework in construction

Author(s): Cheung S.O., Wong P.S.P. and Wu A.W.Y.

Date: 2011

Source: International Journal of Project Management 29 (1), pp. 33-44

Abstract:
Organizational culture gives identity to an organization. Notwithstanding the individuality of the staff members, their actions are collectively bound by the organizational culture. A review of the literature in this topic reveals that despite a number of organizational culture models have been developed, these are mainly for generic business settings and there has yet one developed for construction contracting organizations. This paper reports a study for this purpose conducted in Hong Kong. Firstly, artifacts of organizational culture were long-listed through a literature review. Construction professionals working for developers, consultant offices and contractors assessed the appropriateness of using these artifacts to identify organizational culture in construction. Through a principal component factor analysis, these artifacts are arranged into a seven-factor organizational culture framework. The seven factors are 'Goal settings and accomplishment', 'Team orientation', 'Coordination and integration', 'Performance emphasis', 'Innovation orientation', 'Members' participation' and 'Reward orientation'. The findings of the study suggest that the construction contracting organizations in Hong Kong favor culture of clear goals with stability. They are less externally focused with a relatively lower emphasis on innovation. These findings suggest construction maintains a local industry mentality.

Organizational learning is the process of applying the imbibed knowledge for improvement. It is suggested that effectuating learning styles are critical for attaining continuous project performance improvement.

• Learning from project monitoring feedback: A case of optimizing behavior of contractors
• Examining the relationship between organizational learning styles and project performance
• An analysis of the relationship between learning behaviour and performance improvement of contracting organizations
• Moderating effect of organizational learning type on performance improvement
• Embodying learning effect in performance prediction

Project: Learning from project monitoring feedback: A case of optimizing behavior of contractors

Author(s): Wong P.S.P., Cheung S.O. and Wu R.T.H.

Date: 2010

Source: International Journal of Project Management 28 (5), pp. 469-481

Abstract:
Monitoring is an essential part of construction project management and has typically been devised to guard against non-compliance. When contractors are subjected to regular performance feedback, instead of just taking remedial action, they may take the opportunities to enhance their operations in the light of the feedback. Thus, it has been advocated that responding to performance feedback has a learning element. This study takes on this notion and examined the performance change pattern of contractors that have been subjected to regular performance feedback. The findings suggested that the contractors in the sample can be arranged in four clusters: Competent Learners, Incidental Learners, Indifferent Learners and Optimizers. The majority of them fall into the optimizing cluster. This suggests that these contractors may adjust their resources to maintain their performance at an acceptable level which do not deprive their future opportunities. With due caveat to the constraints and limitations of working sample, this finding is thought provoking for project managers in exercising project monitoring.

Project: Examining the relationship between organizational learning styles and project performance

Author(s): Wong P.S.P., Cheung S.O. and Fan K.L.

Date: 2009

Source: Journal of Construction Engineering and Management, Vol. 135 (6), pp. 497-507

Abstract:
A review of literature on organizational learning suggested that organizations mainly exhibit three types of learning styles: single-loop learning (SLL), double-loop learning (DLL), and deutero learning (DeuL). SLL refers to the detection and correction of errors without adjusting one's underpinning assumptions about performance requirements. DLL refers to improvement actions which are undertaken in response to the change of one's underpinning assumptions. DeuL refers to the establishment of a system which propels continuous learning. It has been advocated that effectuating these learning styles are critical for attaining continuous project performance improvement. This paper reports a study that aimed to examine the relationship between organizational learning styles and performance improvement in construction projects. It was found that the attainment of project performance improvement was positively related to the practice of DLL. Further, DeuL was found essential for facilitating the practice of SLL and DLL.

Project: An analysis of the relationship between learning behaviour and performance improvement of contracting organizations

Author(s): Wong P.S.P. and Cheung S.O.

Date: 2008

Source: International Journal of Project Management 26 (2), pp. 112-123

Abstract:
Previous studies have rarely examined the link between contracting organizations' practice of intra-organizational learning (intra-OL) and engagement in inter-organizational learning (inter- OL). Thus, when the effect of intra-OL on performance improvement was investigated, the role of inter-OL was not included in the equation. This paper reports a study that aims to test empirically whether the effect of practicing intra-OL on performance improvement is contingent on the contracting organizations' engagement in inter-OL. A conceptual model which depicts the hypothesized relationships between practicing intra-OL, engagement in inter-OL and performance improvement is presented. Data were obtained from a questionnaire survey. To test the conceptual model, Pearson correlation analysis and multiple moderated regression (MMR) analysis were employed. The results suggest that contracting organizations' practice of intra-OL is symbiotic to their engagement to learn at inter- organizational level. In particular, 'the development of Project Monitoring System' is identified as the most versatile inter-OL attribute which energizes the effect of practicing single-loop and double-loop learning on performance improvement. The findings in this study timely remind the importance of providing useful feedback so as to vitalize OL and make performance improvement sustainable.

Project: Moderating effect of organizational learning type on performance improvement

Author(s): Wong P.S.P., Cheung S.O. and Leung K.Y.

Date: 2008

Source: Journal of Management in Engineering 24 (3), pp. 162-172

Abstract:
It has been advocated that information available from a performance measurement system (PMS) is an invaluable source of knowledge for contracting organizations. As such, it has been suggested that performance improvement can be achieved if contracting organizations can capitalize on the learning opportunities accorded from feedback derived from a PMS. Literature on learning also suggests that organizations display three types of learning: (1) single loop, double loop and Deutero. This paper reports a study that aims to (1) empirically test the positive effect derived performance feedback on performance; and (2) identify the extent to which the learning types have significant impact on performance improvement. The findings suggested that there is a significant correlation between performance improvement and feedback from a PMS. It was found that all three forms of organizational learning can contribute to performance improvement and are not mutually exclusive. Nonetheless, double- loop learning practices that addresses the root causes of underperformance were found to be more versatile in facilitating improvement in efficiency and effectiveness.

Project: Embodying learning effect in performance prediction

Author(s): Wong P.S.P., Cheung S.O. and Hardcastle C.

Date: 2007

Source: Journal of Construction Engineering and Management 133 (6), pp. 474-482

Abstract:
Predicting performance of contractors is of interest to both academics and practitioners. The physical execution of a project is critical to the overall success of the development. Having a competent contractor that can deliver is most desirable. In this aspect, a significant number of performance prediction models have been developed. Multiple regression and neural networks are typically used as the analytical tools in these prediction models. This paper reports a study that employs a learning curve approach to perform the prediction task. It is suggested that this approach can accommodate the changes in performance as experience accumulates. Thus a performance pattern is projected in addition to the project final outcome. A two-step approach suggested by Everett and Farghal was adopted for this study. First, the learning curve model that best represents a contractors' performance was explored using the least-square curve fitting analysis. Second, prediction analysis was performed by comparing the actual performance data with their respective prediction results obtained from extrapolation on the selected learning curve. The three-parameter hyperbolic model was found to provide the most reliable prediction on performance in this study.

Trust is the driver in fostering cooperation. A trust inventory helps to assess trust pattern and identify the weakness of trust building among contracting parties. Afterwards, trust is identified as the most critical factor to facilitate partnering success.

• Developing a trust inventory for construction contracting
• A framework for trust in construction contracting

Project: Developing a trust inventory for construction contracting

Author(s): Cheung S.O., Wong W.K., Yiu T.W. and Pang H.Y.

Date: 2011

Source: International Journal of Project Management 29 (2), pp. 184-196

Abstract:
Trust is central to every transaction that demands contributions from the parties involved. In construction, trust has been identified to be the key driver in fostering cooperation. By operationalizing a trust framework that includes system-based, cognition-based and affect- based trust, a trust inventory is proposed. The reliability and stability of the inventory were then validated through the test-retest methodology. The proposed trust inventory can be used to assess trust pattern. Supporting view on the appropriateness of the trust framework and the potential uses of the trust inventory were obtained from a confirmatory qualitative study with two senior construction professionals.

Project: A framework for trust in construction contracting

Author(s): Wong W.K., Cheung S.O., Yiu T.W. and Pang, H.Y.

Date: 2008

Source: International Journal of Project Management 26 (8), pp. 821-829

Abstract:
How trust establishes and sustains relationship has been widely studied in the fields of social science, economics, business and management. It has been suggested that trust helps to reinforce individuals' affirmative willingness, confidence, expectation, belief, behavior and to overcome risk/uncertainty. However, trust building has been considered as impossibility due to the divergent interests of the contracting parties. As such, implementing trust in construction contracting has gained limited progress. This study aims to first conceptualize trust in construction by categorizing trust types according to their development bases. Based on a review on previous studies on trust, three major types of trust are identified; system- based, cognition-based and affect-based. To enhance trust-building, these trust conceptions were further reduced to trusting behaviors. In this respect, a trust framework in construction contracting was developed and tested empirically by the technique of structural equation modeling. The trust framework thus enhances our outstanding how trust building can be practiced in construction contracting.

Establishing trust among partner is considered as the most important factors that underpin partnering success. A better understanding of the role of trust and its manifestation in partnering efforts are therefore studied.

• Contractor as trust initiator in construction partnering - Prisoner's dilemma perspective
• Structural equation model of trust and partnering success
• Trust in construction partnering: Views from parties of the partnering dance

Project: Contractor as trust initiator in construction partnering - Prisoner's dilemma perspective

Author(s): Wong P.S.P., Cheung S.O. and Ho P.K.M.

Date: 2005

Source: Journal of Construction Engineering and Management 131 (10), pp. 1045-1053

Abstract:
Partnering has been advocated for use in construction as a project-delivery approach to curb dispute and enable a cooperative contracting environment. Successful construction partnering is perceived to derive benefits to both developers and contractors. In view of significant implications to successful project delivery, there has been a surge of research and studies on construction partnering. These studies typically focus on the partnering process as well as the identification of critical success factors. Among the various success factors that underpin partnering success, establishing trust among partners is considered the most important. Moreover, skeptics have been swift to point out that establishing trust in construction is daunting. A better understanding of the role of trust and its manifestation in partnering efforts is therefore of both academic and practical value. In this study, motivating trust in construction partnering is described within the classic framework of "the prisoner's dilemma," which suggests the trust cycle can be kick-started if construction partners put cooperation before competition and self-interest. This paper reports a study that is designed to suggest a suitable candidate for the trust initiator. As such, the critical trust factors for two groups of construction partners in Hong Kong - developers/consultants and contractors - are first identified. It is found that "performance" and "permeability" of partners are the two most critical trust factors. "Performance" describes the partner's competence and problem-solving ability as perceived by their counterpart. "Permeability" reflects the partner's openness in sharing information. The result of a multiple-regression analysis further suggests that the contractor is in a position to initiate trust through competent performance and maintaining effective communication with the client. In this manner, the trust cycle can expand with reciprocal trustworthiness from the client.

Project: Structural equation model of trust and partnering success

Author(s): Wong P.S.P. and Cheung S.O.

Date: 2005

Source: Journal of Management in Engineering 21 (2), pp. 70-80

Abstract:
The establishment of trust has been identified as the most critical factor that facilitates partnering success. As such, management should direct their efforts and energy to enhance trust effectively and systematically. It is hypothesized that partners' trust level is positively related to their performance, permeability, and relational bonding and can be system based. This paper reports the use of the structural equation modeling technique to test this hypothesis. Project-based data on partnering success and the relative importance of the four trust factors were collected through a questionnaire survey, and the level of partnering success was assessed by the achievement of the preset project targets. The findings of the study support the hypothesized positive relationship between the partners' trust level and partnering success. In addition, performance, permeability, and relational bonding were found to make significant contributions toward parties' trust level.

Project: Trust in construction partnering: Views from parties of the partnering dance

Author(s): Wong P.S.P. and Cheung S.O.

Date: 2004

Source: International Journal of Project Management 22 (6), pp. 437-446

Abstract:
Previous researches in partnering have highlighted the importance of developing trust among construction partners to facilitate project success. This paper seeks to investigate the relative importance of the trust factors contributing to partnering success in Hong Kong. To compare the views from parties of a partnering dance, data was collected from two groups of respondents: Clients and Consultants and Contractors. From the results of the Clients and Consultants group, 'System-based trust' is ranked as the most important trust factor among others. This indicates that they rely strongly on satisfactory contract terms to enhance trust. Despite 'System-based trust' is also ranked first in the Contractors group of results, its factor score is found to be very close to its second important trust factor namely 'Partners' Performance and Permeability'. This suggests that the contractors' trust level is more sensitive towards a wider range of action/behaviour of their counter part than vice versa. The reliability of the findings was augmented by a confirmatory study with interviews with industry experts in Hong Kong.