Structural equation modelling of organizational justice and cooperative behaviour in the construction project claims process: contractors' perspectives

Abstract

A cooperative attitude is essential for successful teamwork in construction. The levels of conflict and dispute on construction projects are conceptualized as forms of cooperative/uncooperative attitude. A theoretical model demonstrates how conflict intensity, contractors' dispute tendencies and six identified constructs of organizational justice interact with and relate to each other. The model is tested using a structural equation modelling technique with partial least‐squares estimation. It uses survey data obtained from 41 contractors regarding their project experience. The results suggest that perceptions about organizational justice either promote or hinder cooperative behaviour in the construction project delivery process. Organizational justice, or at least people's perceptions of it, influenced 38% of conflict intensity levels, and altered 46% of contractors' tendencies to dispute. Perceptions about the quantum of claims approved (favourability of the outcome and the perceived fairness of the outcome) influenced the levels of conflict and dispute. However, the way people are treated (quality of treatment) and the way claims are administered (quality of decision‐making) have the largest impact on the model developed. Cooperative behaviour can be promoted on projects by managing construction claims in a proactive manner and by proper implementation of the claims mechanism.