Relational Contracting Conceptual Model for Public Sector Construction Organisations: An Indian Context

Abhay Gopalrao Tawalare,Boeing Laishram

doi:10.5130/ajceb.v18i2.5872

Abstract

Adoption of relational contracting in public sector construction organisations is more difficult than in private sector organisations due to the inherent rigidity of public sector. Therefore, implementation of the relational contracting processes should be treated as an organisational change management process in public sector organisations. The purpose of this paper is to develop a relational contracting conceptual model (RCMM) by integrating success factors for positive change management in public sector organisations. A qualitative research methodology comprising two rounds of expert interviews was used. The first round of interviews was conducted to gauge the present level of relational contracting in public sector construction organisations. The second round of interviews was conducted to validate the relational contracting conceptual model by integrating success factors of change management in public sector organisations. The relational contracting model highlighted the importance of a need to develop a vision for partnering, stakeholder analysis and consensus building among them, empowerment of operational level employees and their participation in plan execution, time bound review meetings of top management on site to show commitment, resolution of disputes and fast decision making along with publication of the performance reports. The paper presents a critical insight on relational processes of public sector construction organisations in India in the context of organisational change management model which has not been the focus in majority of the previous research studies.

Highlights

Relational contracting, either in the form of partnering or alliancing, improves the working relationship between various stakeholders
The purpose of this paper is to develop a relational contracting conceptual model (RCMM) by integrating success factors for positive change management in public sector organisations
The phrases of the questions were “tell me about new project management strategies used” or “explain it with suitable example”. Findings from this primary data collected by way of these interviews and the secondary data collected from the published literature was utilised to develop a preliminary framework of relational contracting. This framework was further improved by inducting the success factors for change management in public sector organizations, which led to the formation of a conceptual model

Summary

Introduction

Relational contracting, either in the form of partnering or alliancing, improves the working relationship between various stakeholders. Partnering and alliancing are different from each other but work on common relational factors like respect, trust, teamwork, commitment and shared goals. This relationship depends on good faith rather than on a formal contract (Lu and Yan, 2007). Relational contracting represents a significant divergence from traditional practices and requires comprehensive strategic planning for transformation at organisational level. It demands appropriate change at the core of organizational design and functioning. Implementation of partnering in projects should be considered as a modern organisational change management process even though project partnering agreement is carried out for individual projects (Wilson, Songer and Diekmann, 1995)

Objectives

Methods

Findings

Discussion

Conclusion