Relational contracting approach for improving performance of infrastructure development projects

Abstract

Relational Contracting (RC) is a flexible procurement approach directed at optimising project performance through applying its principles; aiming at the relational integration of all stakeholders of a project, by engaging them in “cross linked value networks”. Partnering, alliance, private-public partnerships and joint ventures are the common procurement types of such nature. Although RC have proven benefits especially for complex and uncertain infrastructure development projects, these are not well established in most developing countries including Sri Lanka. Therefore, understanding of industry practitioners on how RC systems bring in performance improvements to construction projects will definitely promote RC. In view of that, the research aims to provide related knowledge by identifying and subsequently assessing the impact of key parameters of RC on major performance areas of infrastructure development projects. A questionnaire survey was conducted based on the knowledge gained through literature and was followed by an interview survey to validate the questionnaire survey findings derived through statistical t-tests. Questionnaire findings identified nineteen significantly existent characteristics in RC types and were recognised as highly important for ‘Time’, ‘Cost’ and ‘Quality’ performance of infrastructure development projects. Thus, adopting of RC should be promoted to achieve better project outcome.