Influence of Trust and Contract on Dispute Negotiation Behavioral Strategy in Construction Subcontracting

Zhang, Shui Bo; Fu, Yongcheng; Gao, Ying; Zheng, Xiao Ke

doi:10.1061/(asce)me.1943-5479.0000427

Cited by 96 publications

(66 citation statements)

References 60 publications

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“…1) The contractual flows are always bidirectional in construction projects (Zhang et al, 2016). Contractual relationships in the PH supply chain include services contract, construction contracts, and properties transfer contracts, etc.…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring transaction costs in the prefabricated housing supply chain in China

Qian

Straub

et al. 2019

Journal of Cleaner Production

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The growing environmental problems, the rapid urbanization, and the disappearance of the demographic dividend in China has brought unprecedented opportunities to the development of prefabricated housing (PH). However, many barriers are hindering the promotion of PH, for instance, cost, lack of regulations, and the shortage of knowledge, among which cost is identified as one of the most critical barriers. Unlike previous studies focused only on production costs, this research aims to investigate transaction costs (TCs), e.g., searching costs, negotiation costs, and enforcement costs. First, this paper develops a theoretical TCs framework of the PH supply chain, based on an extensive literature review. Secondly, an empirical study was conducted on two cases in Chongqing to validate the TCs framework. Key stakeholders are identified by Social Network Analysis (SNA). Subsequently, 25 semi-structured interviews were conducted with key stakeholders, both to verify the new TCs framework and to explore stakeholder concerns about TCs. The centrality metrics by SNA identified six key stakeholders who have a significant influence on TCs. It is found from the interviews that both the conceptual phase and the construction phase are stages where the majority of TCs occur. Both the developer and the general contractor are paying for more TCs compared to the other stakeholders. This study contributes to theory by initially introducing the concepts of TCs to the PH field, and the findings bring implications on the governance of PH supply chain to both private stakeholders and the government.

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Section: Literature Reviewmentioning

confidence: 99%

Exploring transaction costs in the prefabricated housing supply chain in China

Qian

Straub

et al. 2019

Journal of Cleaner Production

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“…Flexible and open contracts were found to be essential, given the uncertain nature of the industry and the inherent complexity of large construction projects . Moreover, given that disputes are common in the construction industry (Zhang, et al, 2016), and since contracts may not cover future hidden risks, having a powerful dispute resolution mechanism between both parties is a crucial asset. The findings suggest that it adds reliability to a contractor, and trust to a client.…”

Section: Contract Development Phase: Trust Developmentmentioning

confidence: 99%

“…Such a complex architecture demands real time control over every operation as well as a transparent network of players that trust each other. In addition, considering the complexity , fragmentation, and disputes (Zhang, et al, 2016) that characterise the construction industry, trust becomes a crucial ingredient for project success, which should be enabled through a transparent flow of information amongst stakeholders (Brady, 2014).…”

Section: Introductionmentioning

confidence: 99%

From relational to technological trust: How do the Internet of Things and Blockchain technology fit in?

Pena¹,

Papadonikolaki²

2019

Proceedings of the 2019 European Conference on Computing in Construction

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The construction industry is complex, fragmented and struggles to cope with an intricate and geographically diverse Supply Chain (SC) where sophisticated flows of materials, information and capital take place in a dynamic environment. In this context, building trust among partners is a necessary requirement to deliver a successful project on time and on budget. This paper investigates the main factors that build inter-firm trust in large construction projects and explores the disruptive effect that the Internet of Things (IoT) and Blockchain (BC) could have in this process. The findings are based on an in-depth analysis of the literature and ten one-to-one telephone and face-toface interviews. The findings contribute to the literature by suggesting that a Blockchain-enabled IoT ecosystem has the potential to generate inter-firm trust at the front-end, during contract development, and throughout the construction phase. Moreover, the data denotes the need for further technological adoption in the construction industry as a means of smoothing the transition from relational trust to technological trust.

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“…Non-rule-based dispute resolution methods, on the other hand, are more informal in nature and focus on exigencies of relationship management. Examples of such methods may involve negotiation case-based forms (Yiu and Lee, 2010;Zhang et al, 2016), mediation (Bates and Holt, 2011) and conciliation (Roy et al, 2015).…”

Section: Alternative Dispute Resolution (Adr) Usagementioning

confidence: 99%

An examination of the ‘rule of law’ and ‘justice’ implications in Online Dispute Resolution in construction projects

Ojiako

Chipulu

Marshall

et al. 2018

International Journal of Project Management

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This paper examines the 'rule of law' and 'justice' implications of using Online Dispute Resolution (ODR) platforms as technology-mediated interfaces for small claim dispute resolution in construction projects. Data is obtained from a questionnaire survey of construction stakeholders, administered using direct non-random sampling of professional contacts with the authors. Data is analysed using SAS 9.4 (SAS Institute, Cary, NC) on a Windows 7 platform. Surprisingly, study findings do not suggest any 'rule of law' and 'justice' implications for small claim ODR. Tentatively, this conclusion supports wider use of ODR. The originality of the study is that although there is considerable academic and practitioner interest in various alternative forms of dispute resolution (ADR), both practitioner use and academic study of ODR remain sparse. Thus, this study serves as a foundation for further empirical exploration of ODR as a nascent component of ADR.

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Influence of Trust and Contract on Dispute Negotiation Behavioral Strategy in Construction Subcontracting

Cited by 96 publications

References 60 publications

Exploring transaction costs in the prefabricated housing supply chain in China

Exploring transaction costs in the prefabricated housing supply chain in China

From relational to technological trust: How do the Internet of Things and Blockchain technology fit in?

An examination of the ‘rule of law’ and ‘justice’ implications in Online Dispute Resolution in construction projects

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