The Effects of Contractual Governance and Relational Governance on Construction Project Performance: An Empirical Study

Author(s):  
Yazhuo LUO ◽  
Fan LIANG ◽  
Zhendong MA
2013 ◽  
Vol 368-370 ◽  
pp. 1922-1926 ◽  
Author(s):  
Zu Song Cheng

Project contract is only one aspect of project governance. Even a perfect contract can not ensure the project performance. The specific characteristics of construction project transaction determines the traditional project governance mechanism that focus on contract alone can not make sure that the construction project goes well. In fact, since construction projects are inserted to certain social environment, the influence of social relationship on project performance draws increasing attention as the research on project governance goes further. The paper applies the idea of relational governance to construction project transaction governance aimed at its specific characteristics and analyses the influential factors of relational governance in construction project transaction from the stakeholders angle and its application exemplified by the partnering pattern.


2019 ◽  
Vol 26 (4) ◽  
pp. 723-735 ◽  
Author(s):  
Dedong Wang ◽  
Shaoze Fang ◽  
Kaili Li

Purpose The purpose of this paper is to study the mechanisms governing dynamic changes in relational and contractual governance at different stages of government-funded mega construction projects (MCPs) by studying their different effects on project performance and participants’ opportunism. Design/methodology/approach Partial least squares structural equation modeling was used to test eight hypotheses based on data collected from 147 respondents in different participating organizations in Chinese MCPs. Findings First, contractual governance has a stronger positive impact on project performance than relational governance in the early stage of MCPs, while relational governance exerts more positive effects on project performance than contractual governance in the middle and late stages. Second, opportunism is a mediator variable between governance mechanisms and project performance, and relational governance is more effective than contractual governance in restricting opportunism. Originality/value In contrast to a static analysis of project governance mechanisms, this study examines dynamic changes in the governance mechanisms of MCPs in the Chinese context by considering the mediating role of opportunism as well as guanxi as an element of relational governance, thus filling in gaps in the literature on MCP governance and contributing to the development of MCP management theory.


Author(s):  
Syed Arslan Haider ◽  
Mário Nuno Mata ◽  
Shehnaz Tehseen ◽  
José Martins

2019 ◽  
Vol 5 (1) ◽  
pp. 29-34
Author(s):  
Ayu Herzanita

WBS (Work Breakdown Structure) plays an important role in every construction project. WBS is a hierarchy of decreasing scope of work to become the smallest level called a work package, making it easier in the process of project management and control. The current problem is that many contractors in Indonesia, both large and small contractors, do not understand the importance of using WBS in a construction project. This causes project performance to be less than optimal, especially on cost and time performance. Currently, WBS standards have been developed for building projects. In this study will look at the cost and time performance of the project from the use of WBS standard building. The sample used in this study are projects that have applied the use of project standards. The projects include Building X, Lecture Building Y, and Sports Facility Building Z. The method used in this study is the EVM (Earn Value Method) approach, collecting data using questionnaires. The results showed that using the WBS standard had an effect on cost and time performance. Good cost and time performance is shown in the Building X and Lecture Y buildings. While the cost and time performance of the Z Sports Facility Building tends to be unstable. This is because the work items that exist in the WBS standard are not in accordance with the project conditions, so it is necessary to adjust work items.


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