Relational contracting, culture and globalisation

Rowlinson, Steve & Cheung, Yan Ki Fiona (2004) Relational contracting, culture and globalisation. In Ogunlana, S., Charoenngam, C, Herabat, P, & Hadikusumo, B.H.W. (Eds.) International Symposium of CIB W107/TG23 Joint Symposium on Globalisation and Construction, 17-19 November 2004, AIT, Bangkok.

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Successful sustainable relationships rely on relational forms of exchange characterised by high levels of trust but it is generally accepted that the construction industry has a stronger preference for distrust rather than the full benefits of cooperations (Wood and McDermott, 1999). There is a need for culture change to bring about increased cooperation between parties on a long-term basis. However, this trust must be developed across cultures with different values and mores and this presents a unique and complex problem when taken in the context of the temporary multi-organisations which are endemic in the construction industry.

With relational contracting, based on sustainable relationships and trust, a win-win situation can be created for both the client and contractor. The development of trust between organisations is seen as a function of the length of the relationships between them (Bresnen and Marshall, 2000). It is also commonly believed that the construction industry is one which requires lots of trust between participants due to the high uncertainty in the industry. This paper aims to look at how procurement methods are changing and moving towards sustainable procurement forms through a relational contracting approach in a global context. A critical review of partnering and alliancing approaches will be presented, followed by a review of how the change in procurement culture towards sustainable business relationships benefits different parties in the industry and has the potential to achieve empowerment and regional development despite, or maybe because of, the global perspective of the key players. This review is based on research being undertaken in Queensland, Australia but has general applicability.

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ID Code: 17860
Item Type: Conference Paper
Refereed: Yes
Additional Information: Yan Ki Fiona Cheung is the maiden name of Fiona Lamari
Keywords: relational contracting, culture, Australia, CRC for Construction Innovation, Program A : Business and Industry Development, Project 2002-022-A : Value in Project Delivery Systems: Facilitating a Change in Culture
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Building Construction Management and Project Planning (120201)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Past > Institutes > Institute for Sustainable Resources
Past > Schools > School of Urban Development
Copyright Owner: Copyright 2004 Icon.Net Pty Ltd
Copyright Statement: The Participants of the CRC for Construction Innovation have delegated authority to the CEO of the CRC to give Participants permission to publish material created by the CRC for Construction Innovation. This delegation is contained in Clause 30 of the Agreement for the Establishment and Operation of the Cooperative Research Centre for Construction Innovation. The CEO of the CRC for Construction Innovation gives permission to the Queensland University of Technology to publish the papers/publications provided in the collection in QUT ePrints provided that the publications are published in full. Icon.Net Pty Ltd retains copyright to the publications. Any other usage is prohibited without the express permission of the CEO of the CRC. The CRC warrants that Icon.Net Pty Ltd holds copyright to all papers/reports/publications produced by the CRC for Construction Innovation.
Deposited On: 16 Feb 2009 23:22
Last Modified: 24 Mar 2014 01:45

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