Are Relational Contracting Approaches Applicable to Public Projects in China?

Abstract

Rising complexities in construction projects management has boosted the importance of relational contracting (RC) in the field. RC is based on recognition of mutual benefits and win-win scenarios gained through more cooperative relationships between contracting parties. There have been a range of RC initiatives across many countries towards deeper collaborative relationships; however, such formal RC approaches are not yet well established in China. In this paper, the feasibility of implementing RC in the China’s public construction projects is investigated. The results indicate that RC is highly feasible for implementation in China due to its theoretical benefits, its alignment to Chinese culture, and its behaviors in past public construction projects. Three strategies for facilitating the implementation of RC in China are proposed.

Keywords

relational contracting / public construction / relationship

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