An empirical study on the formation mechanism of trust between the owner and the PMC contractor under the PMC model

Abstract

In implementing the PMC model, trusting relationships between owners and PMC contractors is the key to resolving the dilemmas caused by institutional constraints and conventional thinking, such as frequent organizational conflicts, low management efficiency, and higher transaction costs. This study utilized PMC projects in Guangxi, Jiangsu, Zhejiang, Tibet, and Guizhou as analysis samples and employed semi-structured field interviews to investigate the antecedents of trust between owners and PMC contractors. In addition, questionnaires were used to quantify the mechanism of trust formation between the two parties and the influence of trust on project performance. The findings indicated that the managerial competence and reputation of the PMC contractor, the adequacy of the owner's authorization, and the effectiveness of the owner's supervisory measures were the key drivers of calculative trust. The adequacy of the owner's authorization, the effectiveness of the owner's supervisory measures, and social similarity play the greatest roles in influencing relational trust. Calculative and relational trust significantly impact project performance, with relational trust having a slightly more substantial impact. This study can serve as a resource for enhancing the performance of PMC projects and achieving PMC project success.