Partnering Mechanism in Construction: An Empirical Study on the Chinese Construction Industry

Partnering and its principles have increasingly been introduced to the construction industry to improve the efficiency of project delivery. However, little research outlines the mechanism behind its application. This paper presents the findings of a study that was conducted to develop and test a partnering model that reveals the relationships between the critical success factors (CSFs) of partnering and demonstrates their importance to construction. With support of data collected from the Chinese construction industry, this study has revealed strong correlations among partnering CSFs, risk management, total quality management (TQM), use of incentives, and project performance. It is concluded that project success is the outcome of the interaction between a variety of techniques, and that partnering, associated with incentives, is a basic management method through which risk management and TQM can be strongly improved.     

Exploring Critical Success Factors for Partnering in Construction Projects

The construction industry is a very competitive high-risk business. Many problems, such as little cooperation, lack of trust, and ineffective communication resulting in adversarial relationships between contracting parties, are facing the construction industry. Partnering is perhaps one of the most innovative developments in delivering a project efficiently and reducing construction disputes. It provides a sound basis for a “win-win” climate and synergistic teamwork. Project partnering in the Hong Kong construction industry has gained in popularity since 1994. A number of potential factors contributing to partnering success have emerged and deserve further study. This paper presents a review of the development of the partnering concept in general and identifies critical success factors for partnering projects from the Hong Kong perspective in particular. Through a postal questionnaire survey geared toward project participants with hands-on partnering experience, the opinions of various parties—clients, consultants, and contractors were sought and evaluated in relation to partnering success factors. The relationship between the perception of partnering success and a set of success factors hypothesized in the study was derived using factor analysis and multiple regression. The results indicated that certain requirements must be met for partnering to succeed. In particular, the establishment and communication of a conflict resolution strategy, a willingness to share resources among project participants, a clear definition of responsibilities, a commitment to a win-win attitude, and regular monitoring of partnering process were believed to be the significant underlying factors for partnering success. Such an identification of success factors could well formulate effective strategies for minimizing construction conflicts and improving project performance.     

Contractor as Trust Initiator in Construction Partnering—Prisoner’s Dilemma Perspective

Partnering has been advocated for use in construction as a project-delivery approach to curb dispute and enable a cooperative contracting environment. Successful construction partnering is perceived to derive benefits to both developers and contractors. In view of significant implications to successful project delivery, there has been a surge of research and studies on construction partnering. These studies typically focus on the partnering process as well as the identification of critical success factors. Among the various success factors that underpin partnering success, establishing trust among partners is considered the most important. Moreover, skeptics have been swift to point out that establishing trust in construction is daunting. A better understanding of the role of trust and its manifestation in partnering efforts is therefore of both academic and practical value. In this study, motivating trust in construction partnering is described within the classic framework of “the prisoner’s dilemma,” which suggests the trust cycle can be kick-started if construction partners put cooperation before competition and self-interest. This paper reports a study that is designed to suggest a suitable candidate for the trust initiator. As such, the critical trust factors for two groups of construction partners in Hong Kong—developers/consultants and contractors—are first identified. It is found that “performance” and “permeability” of partners are the two most critical trust factors. “Performance” describes the partner’s competence and problem-solving ability as perceived by their counterpart. “Permeability” reflects the partner’s openness in sharing information. The result of a multiple-regression analysis further suggests that the contractor is in a position to initiate trust through competent performance and maintaining effective communication with the client. In this manner, the trust cycle can expand with reciprocal trustworthiness from the client.     

Achieving Partnering Success through an Incentive Agreement: Lessons Learned from an Underground Railway Extension Project in Hong Kong

Over the years, it has been observed that partnering has been ineffectively implemented in the public sector of Hong Kong. Contributing factors to this lack of success are nature and the large size of bureaucratic organizations and commercial pressure compromising the partnering attitude. The Mass Transit Railway Corporation Limited (MTRCL), one of the prominent pioneers in adopting project partnering in the infrastructure sector of Hong Kong since 1999, however, implemented the partnering principle with significant success. This paper, based on a recently completed research project funded by the Construction Industry Institute?Hong Kong in late 2004 and a followup in-depth interview meeting with senior executives of MTRCL in early June 2005, analyzes the rationale behind the successful development of partnering culture in the infrastructure sector of Hong Kong through a case study—the Tseung Kwan O Railway Extension (TKE) Contract 654—platform screen doors. The project comprises the supply and installation of platform screen doors along the whole MTRCL’s TKE with five stations. This project was analyzed by means of the project documentation and face-to-face interviews with the project representatives, comparisons with another five partnering case studies, and a followup in-depth interview meeting with another two senior executives of MTRCL. After the analysis, it was found that the implementation of partnering together with an incentive agreement (IA), a kind of target cost (TC) contract, underpinned the partnering success of this project. Therefore, it is recommended that partnering together with TC contracts, such as IA, greatly assists in the achievement of construction excellence, and can provide a workable model for enhancing overall project performance in electrical and mechanical projects.     

Effective Partnering in Innovative Procured Multicultural Project

Effective partnering has been shown to improve projects in numerous ways including cost, schedule, safety, quality, and claims. However, partnering in a multicultural, multiphase environment has some additional challenges. This paper describes some lessons learned from the Tren Urbano project in San Juan, Puerto Rico, a $1.5 billion, 17.2-km heavy-rail project. The Tren Urbano Project has an innovative procurement strategy of turnkey with multiple primes, which combined with the multiphase, multicultural project environment presents additional challenges for providing an effective partnering environment. A system dynamics partnering model was built to demonstrate that the partnering effort in the Tren Urbano project was adequate for a traditional procured, limited culture project. However, for a project like Tren Urbano, a greater partnering effort is needed to achieve the same results.     

Partnering Process Model for Public-Sector Fast-Track Design-Build Projects in Korea

The use of design-build project delivery in the public sector has increased rapidly since the early 1990s due to its advantages over traditional delivery methods, particularly in terms of shortening the overall project duration. Fast-track approaches are being applied to design-build projects to achieve the optimum schedule durations. While both fast-track projects and design-build project have been researched separately in the past, there is little published research on how they are truly integrated. Likewise, the research has shown the merits of partnering in design-build and fast-track projects separately, but not in an integrated model. The purpose of this study is to develop a fast-track partnering process model (FTPPM) that combines the fast-track approach with the partnering concept. The model is based on the analysis of the factors that influence successful fast-track processes. Seven key success vehicles were discovered using the factor analysis method. The FTPPM is composed of the preparation stage, the fast-track workshop stage, and the detailed design and construction stage. The activities for each stage for fast-track implementation are developed in consideration with seven key success vehicles for fast-track projects.     

Quantitative Analysis of Partnered Project Performance

Partnering is a technique that has become the construction industry's application of total quality management and enjoys widespread use throughout the industry. This paper details the results of a statistical analysis of over 400 Texas Department of Transportation construction projects worth a total investment of nearly $2.1 billion. Half the projects were completed under partnering agreements. After comparing the two groups of projects, the paper concludes that partnering promises to furnish a means to control the two prime project performance indicators—cost growth and time growth. Additionally, in a large construction program the continuous application of partnering will result in improved project performance across the entire program.     

An age apart: The effects of intergenerational contact and stereotype threat on performance and intergroup bias.

An experimental study examined the effect of intergenerational contact and stereotype threat on older people's cognitive performance, anxiety, intergroup bias, and identification. Participants completed a series of cognitive tasks under high or low stereotype threat (through comparison with younger people). In line with stereotype threat theory, threat resulted in worse performance. However, this did not occur if prior intergenerational contact had been more positive. This moderating effect of contact was mediated by test-related anxiety. In line with intergroup contact theory, more positive contact was associated with reduced prejudice and reduced ingroup identification. However this occurred in the high threat, but not low threat, condition. The findings suggest that positive intergenerational contact can reduce vulnerability to stereotype threat among older people. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Structural Equation Model of Trust and Partnering Success

The establishment of trust has been identified as the most critical factor that facilitates partnering success. As such, management should direct their efforts and energy to enhance trust effectively and systematically. It is hypothesized that partners’ trust level is positively related to their performance, permeability, and relational bonding and can be system based. This paper reports the use of the structural equation modeling technique to test this hypothesis. Project-based data on partnering success and the relative importance of the four trust factors were collected through a questionnaire survey, and the level of partnering success was assessed by the achievement of the preset project targets. The findings of the study support the hypothesized positive relationship between the partners’ trust level and partnering success. In addition, performance, permeability, and relational bonding were found to make significant contributions toward parties’ trust level.     

Integrated Project Delivery Case Study: Guidelines for Drafting Partnering Contract

This paper presents a case study through which a multinational contracting firm aimed to introduce integrated project delivery through strategic partnering into its industry operations. The study reports on a research carried out by the author on behalf of the firm to set out series of principles and guidelines to consider when drafting a standard partnering contract whereby the owner, contractor, suppliers, and manufacturers collaboratively work together under the same terms and conditions. A partnering contract would never, on its own, change the culture and environment of the construction process and thus, strategic partnering should be promoted not only at project specific activities but at all organizational activities. Based on this project, the paper presents a list of ten managerial and contractual issues to promote strategic partnering. The author hopes that the results of this case study would foster legal professionals toward drafting a modern partnering contract, which should help in developing a more effective and efficient contracting environment.     

Price Competitive Alliance Projects: Identification of Success Factors for Public Clients

The need to identify the critical factors in the successful development and management of the price competitive alliance model has become a priority for public sector clients, as there is an increasing need to obtain better value for money (VfM) for its infrastructure projects. Yet, there has been limited research undertaken about the nature and use of price competitive alliances. This research determines the success factors (SFs) for price competitive alliances during their relationship development phases as this form of alliance contract is being used extensively by public sector clients to procure critical infrastructure projects in Western Australia (WA). A review of the literature of partnering and alliance contracting is used to develop a conceptual model of potential SFs. Interviews with 21 practitioners who participated in alliances on behalf of a WA public sector client were conducted to determine their perceived SF for price competitive alliances throughout the relationship development process. Contrary to the literature, each of the SFs identified was required in each stage of the relationship development process. In particular, the development of a leadership enriched culture (where people view the project as an extension of themselves and feel good about what they personally achieve through cooperation) was deemed necessary for the successful implementation of a price competitive alliance. Moreover it was revealed that the establishment of trust for the client began to arise at the point when a realistic target outturn cost that was able to deliver VfM, as well as an innovative sustainable outcome could be attained. Price competitive alliance models are considered to be an appropriate procurement method, albeit during the current economic climate an alternative to public private partnerships, for delivering large complex infrastructure projects.     

How does cooperation reduce intergroup bias?

This experiment examined the hypothesis derived from the social categorization perspective that intergroup cooperation reduces bias by transforming members' cognitive representations of the aggregate from 2 groups to 1 group. Two 3-person groups experienced intergroup contact under conditions that varied (a) member's representations of the aggregate as 1 group or 2 groups (without involving cooperation) and (b) the presence or absence of intergroup cooperation. As expected, in the absence of cooperation, bias was lower among Ss induced to conceive of the 6 participants as 1 group rather than as 2 groups. Also as predicted, among Ss in the 2-groups condition, intergroup cooperation increased the strength of the 1-group representation and decreased bias. Multiple regression mediation analysis revealed, as expected, that members' representations mediated bias and that the 1-group representation primarily increased the attractiveness of former outgroup members. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

A meta-analytic test of intergroup contact theory.

The present article presents a meta-analytic test of intergroup contact theory. With 713 independent samples from 515 studies, the meta-analysis finds that intergroup contact typically reduces intergroup prejudice. Multiple tests indicate that this finding appears not to result from either participant selection or publication biases, and the more rigorous studies yield larger mean effects. These contact effects typically generalize to the entire outgroup, and they emerge across a broad range of outgroup targets and contact settings. Similar patterns also emerge for samples with racial or ethnic targets and samples with other targets. This result suggests that contact theory, devised originally for racial and ethnic encounters, can be extended to other groups. A global indicator of Allport's optimal contact conditions demonstrates that contact under these conditions typically leads to even greater reduction in prejudice. Closer examination demonstrates that these conditions are best conceptualized as an interrelated bundle rather than as independent factors. Further, the meta-analytic findings indicate that these conditions are not essential for prejudice reduction. Hence, future work should focus on negative factors that prevent intergroup contact from diminishing prejudice as well as the development of a more comprehensive theory of intergroup contact. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Partnering on Defense Contracts

Contracting on government construction projects has historically been structured and adversarial. The decade of the 1990s saw the advent of a new attitude in government contracting that emulated success stories from the private sector. After witnessing several high-profile success stories such as constructing the Atlanta Olympic Park, the government embraced the concept of partnering as a primary method of contract administration. The private sector consistently demonstrated an ability to contract for services while realizing a marked decrease in claims and litigation costs with partnering. Their success was founded in the building of trust within the project team by creating a common bond between previously dissociated parties. This was achieved through developing a mutual understanding of the other parties’ interests and goals in the project while maintaining a team focus on the ultimate goal of a successful project. The government espied partnering as a way to improve its relationships with contractors and reduce the volume of litigation that seemed to only be increasing in the industry. The government began a paradigm shift by instilling a new attitude of openness and communication with contractors as well as implementing several broad contract administration changes. This paper examines the process of partnering, its key elements and core competencies, and how various agencies apply these principles in their construction management. The paper further researches stakeholder goals and important issues when entering into a partnering relationship on government contracts and what barriers are perceived that preclude the process from working as effectively as possible.     

Can imagined interactions produce positive perceptions?: Reducing prejudice through simulated social contact.

The contact hypothesis states that, under the right conditions, contact between members of different groups leads to more positive intergroup relations. The authors track recent trends in contact theory to the emergence of extended, or indirect, forms of contact. These advances lead to an intriguing proposition: that simply imagining intergroup interactions can produce more positive perceptions of outgroups. The authors discuss empirical research supporting the imagined contact proposition and find it to be an approach that is at once deceptively simple and remarkably effective. Encouraging people to mentally simulate a positive intergroup encounter leads to improved outgroup attitudes and reduced stereotyping. It curtails intergroup anxiety and extends the attribution of perceivers’ positive traits to others. The authors describe the advantages and disadvantages of imagined contact compared to conventional strategies, outline an agenda for future research, and discuss applications for policymakers and educators in their efforts to encourage more positive intergroup relations. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Threat inoculation: Experienced and imagined intergenerational contact prevents stereotype threat effects on older people's math performance.

The authors hypothesized that experienced and imagined intergenerational contact should improve older people's math test performance under stereotype threat. In Experiment 1 (N = 51, mean age = 69 years), positive prior contact with grandchildren eliminated stereotype threat, which was mediated partially by reduced test-related anxiety. In Experiment 2 (N = 84, mean age = 72 years), the effect of threat on performance was significantly improved when participants merely imagined intergenerational contact, a situation again mediated by reduced anxiety. Previous research established that intergroup contact improves intergroup attitudes. The findings show that intergroup (intergenerational) contact also provides a defense against stereotype threat. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Establishment of Critical Success Factors for Construction Partnering

Research into the use of partnering in construction has become ubiquitous; however, a framework is needed that can be used to identify critical success factors (CSFs) that contribute to the successful use of partnering in projects. Based on a review of the partnering literature within the management discipline, a partnering framework has been developed to identify the CSFs for construction parties implementing partnering arrangements. The framework highlights the influence of contextual characteristics and management skills on partnering success. The CSFs identified and discussed in the framework are effective communication, conflict resolution, adequate resources, management support, mutual trust, long-term commitment, coordination, and creativity. The degree of success of partnering can be determined by subjective measures (e.g., perceived satisfaction of partners' expectations) and objective measures (e.g., cost variation and rejection of work). A case for initiating partnering is also presented, together with some general guidelines.     

Enhancing Total Quality Management by Partnering in Construction

Total quality management (TQM) has increasingly been introduced into the construction industry across many countries as an improvement strategy, but there are many barriers impeding its effectiveness in implementation. Many researchers pointed out that partnering can facilitate TQM application, yet the quintessential nature on the linkage between the two techniques is still not clear due to a lack of rigorous verifiable empirical evidence. With support of the data collected from a survey of the Chinese construction industry, together with a case study of the Three Gorges Dam Project, this study reveals the mechanism of how partnering, associated with incentives, can enhance the implementation of TQM into the construction industry. It is concluded that partnering can enhance TQM largely due to enhancing the links across the boundaries of organizations within a trust environment; and the impacts of incentives on TQM are through both aligning strong motivations to encourage participants using the established links efficiently and aligning the necessary financial resources for participants to directly assist the investment on improving TQM. Further studies should be conducted to build optimum links and alignments among all project participants to ensure intraorganizational TQM activities are congruent with the interorganizational interactions, which require future project organizations to change in order to fit this.     

The Effects of Cooperation and Competition on Intrinsic Motivation and Performance.

[Correction Notice: An erratum for this article was reported in Vol 87(2) of Journal of Personality and Social Psychology (see record 2007-16905-001). The article contained two errors. On page 853, in Table 1, Study 4, in the Task enjoyment row, the mean for the pure coop-4 condition, which is missing, should be 3.65, and the mean for the individual condition, shown as 3.65, should be 3.63.] The authors examined the effects of competition and cooperation on intrinsic motivation and performance in 4 studies. Across 3 behavioral studies that involved shooting a basketball, no differences were observed between competition and cooperation on task enjoyment or performance. However, the combination of competition and cooperation (intergroup competition) consistently led to higher levels of intrinsic motivation, and in 2 of the 3 studies, performance. In a questionnaire study, the authors replicated the positive effects of intergroup competition on enjoyment and examined process measures that might account for these effects. These findings suggest that competition and cooperation both have positive aspects and that structuring recreational activities to include both can facilitate high levels of both intrinsic motivation and performance. (PsycINFO Database Record (c) 2010 APA, all rights reserved)