Contracts and Culture in a Partnering Project

Author: Per Fridtjof Larssen, Atle Engebø, Ola Lædre and Ole Jonny Klakegg
Publisher: 10th Nordic Conference on Construction Economics and Organization

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Purpose This paper aims to examine how a partnering contract facilitates project values and the culture in a construction project and the consequences of said facilitation. Hence, it answers the following research questions: 1) How does the contractual framework in Bispevika facilitate relational culture? 2) What effects of this facilitation can be identified in the early phase of development? Design/Methodology/Approach An explorative approach is taken into a single case. A literature study into the topics of relational contracting and culture provides a backdrop for the study. The empirical work consists of a study of the construction contracts and six in-depth interviews with actors from the supply-chain. Findings Contractual elements affect the project organizations’ motivation. On the basis of existing literature, five contractual elements are identified explicitly in the contracts: “shared goals”, “incentives and bonus”, “open book”, “colocation”, and “design-build”. Research Limitations/Implications The data collection is restricted to a single point in time in a single project. Further research is necessary both at a later stage in the same case and in similar projects. Practical Implications The paper identifies the effects that proper use of contractual elements has on the relational culture in a construction project and is, therefore, important for subsequent research within the area. Originality/Value In addition to identifying the existing contractual elements, the interviews also revealed two additional practices that might be useful for subsequent research: “involvement of executive management” and “subsequent contracts dependent on previous project performance”.

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