Control influence on trust and relational governance in the client-contractor dyad

The construction industry has in recent years witnessed a paradigm shift towards the use of more collaborative contracting relationships and integrated processes in an attempt to improve construction project delivery. Trust is central to the success of these contracting approaches and although efforts are usually aimed at improving trust relations in client-contractor relationships, there has so far been mixed findings on how trust is influenced by formal control mechanisms discharged via formal contracts. In construction contracting, there is therefore the need to investigate how different governance modes and control mechanisms deployed on construction projects are perceived by those being controlled and how this in turn influences trust. Through a critique of the extant literature on trust and control in construction, this study reveals that the trust-control relationship which can be both complimentary and supplementary has far reaching implications on the measurement/assessment of trust in the construction project context. The orientation of governance and control mechanisms selected by clients and the behavioural consequences of these from contractors can thus be used as a measure of the degree of trust that exists in the dyad

Functional consequences of trust in the construction supply chain: a multi-dimensional view

Trust is often linked to the emergence of cooperative behaviours that contribute to successful project outcomes. However, some have questioned the functional relevance of trust in contractual relations, arguing that control-induced cooperation can emerge from enforcement of contracts. These mixed views are further complicated by the multi-dimensional nature of trust, as different trust dimensions could have varying functional consequences. The aim of this study was to provide some clarity on the functional consequence of trust in the project supply chain. Data was gathered through passive observations, document reviews and semi-structured interviews with supply chain parties on two case study projects in the UK. A thematic data analysis approach was used to uncover multiple perspectives on the functional consequences of trust in the supply chain. Findings revealed that the weaker dimensions of trust, which are impersonal (cognition-based and systems-based) and the stronger (relational-based) dimension of trust, all fostered beneficial behaviours in the supply chain (effective knowledge sharing and self-organising behaviours). However, additional behavioural consequences (relational flexibility and extra commitment) emerged when trust was relational in nature, implying that different trust dimensions and their associated behavioural consequences can be prioritized in the supply chain based on perceived work package risks

Assessing Value for Money in PFI Projects: A Comparative Study of Practices in the UK and Italy

The Value for Money assessment is a critical process in procuring a Private Finance Initiative and it requires accurate ex-ante performance measurement methodologies. The British Government has set new requirements for evaluating VFM through a new assessment model composed of three main stages, namely: programme level assessment, project level assessment, and procurement level assessment. The objective of the new model for VFM assessment is to change the costly, inflexible and opaque side of PFIs in order to deliver cost-effective and improve the quality of public service provision. A theoretical analysis of the implementation of PFI shows the UK as the leading user of this procurement in Europe and Italy is the second. However, there is a disparity in the manner PFI is actually implemented in these two countries and especially how VFM is assessed. Aiming at underlying the best practices of this evaluation process for the most achievable VFM, this paper presents the new VFM assessment model of the UK and a suggestion for its potential application to the Italian PFI procurement process to improve outcomes therein

Trust influencing factors in main contractor and subcontractor relationships during projects

Trust is crucial for achieving optimum benefits from supply chain integration and collaboration in the construction sector. Yet relationships between main contractors and subcontractors continue to be influenced by issues that promote vicious circles of distrust. This research investigates the trust influencing factors in main contractor-subcontractor relationships on projects. Empirical data was gathered from across four case studies through semi-structured interviews, non-participant observations and document reviews, and analysed using thematic analysis. Findings revealed that the change management process, economic climate, payment practices, perceptions of future work opportunities, job performance and the project-specific context influence trustfulness and trustworthiness of the different parties. The findings also imply that stronger trust in the main contractor's supply chain can only be realised and sustained through promotion of trustworthiness-induced rather than benefit-induced trustfulness. © 2015 Elsevier Ltd