Relationships Among Contracting Parties and Their Effects On Outcomes of Public Construction Projects in China

Abstract

Adherence to clear and equitable contract documents does not guarantee project success. Many other contributors such as attitudes of the contracting parties and their relationships are also considered important. Hitherto, it is not known if relationships among contracting parties in public construction projects in China have a significant effect on project performance. This study aims to investigate relationship quality among contracting parties and their effects on project performance in China’s public construction projects. Using a questionnaire survey, 59 sets of data of completed projects were collected from public owners and private contractors and consultants in Beijing. The data were analysed using correlation analysis and one-sample t test. The results show that public construction projects to have achieved significantly good quality performance and client satisfaction but not in budget nor schedule performance. The results also that higher quality of relationships during project implementation stage always leads to significantly good project quality and client satisfaction with the project. In addition, the results show that relationships among contracting parties play an important role in successful project outcomes. It is suggested that concerted effort should be taken to improve relationships in publically funded construction projects, as this will lead to better project outcomes.