Effective partner selection model for construction joint ventures in Sri Lanka

Abstract

Construction Joint Venture (CJV) is a response to the complex and competitive environment which characterised the nature of construction industry. However, various disputes arose in CJVs which impede the successful completion of the construction project especially as a result of the ineffective partner selection. Nevertheless, the literature thus far has failed to provide an effective partner selection for the CJVs since none of the studies subjected to partner selection in CJVs. Hence, the research is aimed to investigate the existing practice of partner selection in order to develop a model for avoiding disputes in CJVs in Sri Lanka. Three rounds of Delphi survey were conducted through the adoption of quantitative approach with the participation of experts who have plenty of experience and adequate knowledge on CJVs. The identified joint venture (JV) partner selection criteria from literature synthesis were the base for the adoption of the CJV partner selection criteria developed using the relative importance index. Consequently, effective CJV partner selection model was proposed based on the effect of dispute avoidance. The concern of literature and industry experts proved the absence of the standard partner selection criteria for the CJVs. However, guidelines for selecting partners provided in tender documents were followed by only contractors in order to fulfil the required criteria merely towards winning the project. Thus, the partner selection model proposed in this research provides a basis to select the most appropriate and the best partner for CJVs by evaluating all particular skills and capacities which may avoid having the future disputes.