Incorporating Contractual Incentives to Facilitate Relational Contracting
by Florence Yean Yng Ling, (Assoc. Prof., Dept. of Bldg., Natl. Univ. of Singapore, 4 Architecture Dr., Singapore 117566 (corresponding author). E-mail: bdglyy@nus.edu.sg), M. Motiar Rahman, (Post Doctoral Fellow, Dept. of Civ. Engrg., The Univ. of Hong Kong, Pokfulam Rd., Hong Kong. E-mail: mmrahman@hkucc.hku.hk), and Tiong Lian Ng, (Lect., Inst. of Tech. Education, 114 Balestier Rd., Singapore 329679. E-mail: ng_tiong_lian@ite.edu.sg)
Journal of Professional Issues in Engineering Education and Practice, Vol. 132, No. 1, January 2006, pp. 57-66, (doi 10.1061/(ASCE)1052-3928(2006)132:1(57))
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| Document type: |
Journal Paper |
| Abstract: |
Construction projects are undertaken by many parties, all with their own goals and motivations which may not always be aligned. Furthermore, they are governed by contracts, which do not necessarily produce win-win outcomes. The aims of this study are (1) to compare the views of contractors, clients, and consultants on factors facilitating and deterring relational contracting (RC); and (2) to investigate the use of contractual incentives to increase the effectiveness of RC. Structured questionnaires were sent by post to randomly selected construction industry players in Singapore to find out factors that enable RC and the barriers that impede the formation of RC. The results show that RC can be facilitated by having top management support, alignment of project objectives, relationship building, and most importantly, appropriate contractual incentives. In most instances, contractors gave a lower level of importance to many of the factors than clients and consultants. It is concluded that more contractual incentives should be provided in contracts in order to evoke the desired relational approaches. |
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