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Building Collaborative Trust in Construction Procurement Strategies



Building Collaborative Trust in Construction Procurement Strategies

Jason Challender, Peter Farrell, Peter McDermott

ISBN: 978-1-119-49229-0 March 2019 Wiley-Blackwell 280 Pages

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Provides a practical framework and toolkit for improved construction project outcomes based on trust and collaboration

This book explores the concept of trust as a tool in improved construction procurement strategies, and provides important insight into the influence of trust on the success of construction projects and redevelopment programs. It is a practical guide that offers readers a solid outline and expert strategies for improving project outcomes through collaboration—ultimately proving that teamwork can really make the dream work.

Building Collaborative Trust in Construction Procurement Strategies: A Practical Guide incorporates a toolkit, complete with flowcharts, to introduce certain trust building interventions within projects. It shows how initiatives and factors that influence collaborative trust can be easily implemented and embedded in construction management for improved practice. It also covers potential challenges, risks, problems, and barriers when it comes to trust. In addition, the book looks at the influences for collaborative trust in the construction industry as well as implications in practice for it in construction. It finishes by looking at the future of collaborative trust in construction procurement.

  • Teaches the importance and influence of trust on collaborative working and partnerships principles
  • Examines to what extent trust within collaborative working arrangements influences the success of collaborative working practices
  • Covers the effect that certain factors and trust building mechanisms have on collaborative working and partnerships and how they can be embedded into procurement of projects
  • Discusses what constitutes best practice and how trust in collaborative procurement practices influences the success of construction projects

Building Collaborative Trust in Construction Procurement Strategies: A Practical Guide is an excellent book for construction management professionals, including clients, consultants, and contractors. It will also serve as a helpful text for undergraduate and postgraduate students and academics.

Author Biographies xi

Foreword by Mark Farmer xiii

Foreword by Emeritus Professor Peter Brandon xv

Preface xvii

Acknowledgements xix

List of Figures xxi

List of Tables xxv

1 Introduction 1

References 4

2 Context of the Lack of Trust in the Construction Industry 7

2.1 From Where Has the Lack of Trust Emerged? 7

2.2 Calls for More Research into the Study of Trust in Construction Contracting 9

2.3 Deficiencies with Traditional Construction Procurement 10

2.4 Overall Context of Collaborative Working and Partnering Within the Construction Industry 14

2.5 Why is Trust Important in Achieving More Successful Project Outcomes? Trust as a Collaborative Necessity 15

2.6 The Importance for Collaborative Working and Trust in Construction 17

2.6.1 Statistical and Academic Context 17

2.6.2 Government Context: Reports, Codes of Practice, and Recommendations for Change 19

2.6.3 Government Context: Construction Procurement in the Public Sector 23

2.6.4 Industry and Professional Context 23

2.7 Problems Challenging the Philosophy of Partnering: The Influence and Absence of Trust 24

2.8 Summary 29

References 30

3 The Theory of Trust: Concept, Components, and Characteristics 37

3.1 Introduction to Chapter 37

3.2 What is Trust, Distrust, and Mistrust? 37

3.3 Potential Benefits of Trust: Incentives to Trust 39

3.4 Composition and Characteristics of Trust 39

3.4.1 Trust as a Multi-dimensional Construct 39

3.4.2 Components of Trust 40

3.5 Categories and Classifications of Trust 40

3.5.1 Integrity, Intuitive Trust, and Competence Trust 41

3.5.2 Calculus, Relational, and Institution-Based Trust 42

3.5.3 System-Based, Cognition-Based, and Affect-Based Trust 42

3.6 Importance, Influence, and Effects of Different Types of Trust 43

3.6.1 The Relative Importance of Different Categories of Trust Within a Construction Context 43

3.6.2 Influences from Conditional and Unconditional Trust 46

3.7 Relationships Between Trust and Distrust 48

3.8 The Dynamic Nature of Trust 49

3.9 The Fragility and Robustness of Trust in a Constantly Changing and Dynamic Environment 49

3.10 Summary 51

References 52

4 The Challenge of Trust Initiation and Formation 55

4.1 Evolution of Trust from Social Sciences Perspective 55

4.2 The Notion of Trustworthiness 57

4.3 Mechanisms, Factors, and Processes for the Development of Trust 57

4.4 Measuring the Quality of Trust 60

4.5 Trust-building Mechanisms: Constructs and Attributes 62

4.6 Relationship Between Trust and Conflict 64

4.7 Trust as an Independent (Cause) and Dependent (Effect) Variable 65

4.8 Relationships Between Trust, Risk, and Control 65

4.9 Relationship Between Trust and Interdependence (Reliance) 68

4.10 Summary 70

References 71

5 Introduction and Background to Collaborative Working and Partnering 75

5.1 What is Collaborative Working and Partnering? 75

5.2 Different Types and Variations of Collaborative Working 76

5.3 Mechanisms for Agreeing Tender Prices Under Partnering Contracts 78

5.4 Perfection Through Partnering Procurement: The Philosophy and Benefits of Teamwork and Integration of the Whole Supply Chain 79

5.5 Potential Problems and Risks for Collaborative Working and Project Team Integration 83

5.6 Summary 86

References 87

6 The Importance, Reliance, and Influence of Trust in Construction Partnering 91

6.1 The Reliance and Importance of Trust for Construction Partnering 91

6.2 Propensity to Trust Theories, Applied to Collaborative Working 96

6.3 Trust as a Collaborative Necessity 100

6.4 Relationship Between Trust and Collaborative Working as a Measure of Performance for Improved Project Outcomes 103

6.5 Summary 105

References 107

7 Potential Problems, Barriers, and Risks for Trust in Collaborative Working 111

7.1 Introduction to the Problem of Trust in Collaborative Working Relationships 111

7.2 Potential Obstacles, Risks, and Difficulties 112

7.2.1 Adversarial Practices, Relationships, and Behaviours 112

7.2.2 The ‘One-Off’ Project–Based Nature of Construction Contracting 113

7.2.3 Resistance to Change Old Familiar Working Practices 114

7.2.4 Commercial, Economic, and Contractual Pressures 115

7.2.5 Influence of Legislative and Governance Measures 119

7.2.6 Organisational Barriers 121

7.3 Methods to Address Potential Risks, Barriers, and Problems for Trust in Partnering Practices 122

7.3.1 Incentives and Problem Solving Through Teamwork 123

7.3.2 Partner Selection Processes, Key Personnel, Management Skills, and Training 125

7.3.3 Risk Workshops 127

7.3.4 Issue Resolution Processes 127

7.4 Summary 128

References 129

8 Factors Which Influence the Development of Trust in Construction 133

8.1 Introduction to the Factors for Influencing Collaborative Trust in Partnering Strategies 133

8.2 Influence of Motivational Factors on Collaborative Trust in the Construction Industry 138

8.2.1 Potential Benefits of Motivational Initiatives 138

8.2.2 Types of Motivational Initiatives 138

8.2.3 Communication and Cooperation 139

8.2.4 Training, Education, and Continual Professional Development 140

8.2.5 Relationships and Teamwork 141

8.2.6 Fairness and Equality 142

8.3 Influence of Ethical Factors on Collaborative Trust in the Construction Industry 143

8.3.1 The Importance of Ethical Considerations for Partnering 143

8.3.2 The Definition of Ethics 144

8.3.3 Ethics from a Professional Perspective 144

8.3.4 Governance and Regulation 145

8.4 Influence of Organisational Factors on Collaborative Trust in the Construction Industry 145

8.4.1 The Temporary Organisational Nature of Construction Projects 145

8.4.2 Alignment of Organisational Strategies 146

8.4.3 Management Systems and Processes for Sharing Information 147

8.4.4 Blending of Beliefs, Values, and Attitudes Within Organisational Environments 149

8.5 Influence of Economic Factors on Collaborative Trust in the UK Construction Industry 150

8.5.1 Economic Rewards and Risks 150

8.5.2 Aligning Commercial Interests; Financial Incentives 150

8.6 Summary 152

References 154

9 Developing a Framework of Trust-Building Mechanisms for the Partnering Toolkit 161

9.1 Previous Studies as Context for the Influence of Trust-Building Mechanisms in Generating Trust Within Construction Partnering 161

9.2 Regular Workshops and Review Meetings with Mutually Aligned Objectives 169

9.3 Fair and Equitable Incentivisation Schemes: Transparency and Sharing of Data 172

9.4 Partnering Charters Encapsulating Ethical Considerations 175

9.5 Senior Management Commitment, Effective Open-Communication Strategies, and Issue-Resolution Processes 176

9.6 Co-location Arrangements 180

9.7 Social Networking, Teambuilding, and CPD Events 180

9.8 Integrated Project Insurance (IPI) Initiative 182

9.9 Compatibility and Complementary Nature of Management Systems and Joint Evaluation Processes 183

9.10 Styles of Leadership and Recognition and Alignment of Organisational Strategies and Mutual Objectives 183

9.11 Partner Selection Processes to Achieve Aligned Synergies 184

9.12 Summary 185

References 187

10 A Partnering Toolkit Based on Integrated Trust-Building Mechanisms 191

10.1 Introduction and Purpose of a Partnering Toolkit 191

10.2 Embedding Trust-Building Mechanisms into the Partnering Toolkit as Part of Collaborative Management Strategies 191

10.2.1 Relationship Management 193

10.2.2 Communications Management 194

10.2.3 Organisation Management 195

10.2.4 Risk Management 196

10.2.5 Financial Management 198

10.3 Incorporating Partnering Toolkit Within Procurement Processes 198

10.3.1 Appointment of a Collaboration Champion Role 198

10.3.2 Staged Approach to Integration of Toolkit Through Different Design Stages 199

10.3.3 Requirement for Measuring the Status of Trust and Collaboration at Regular Stages 201

10.4 Tailoring the Partnering Toolkit to Suit the Nature of Projects and Their Environment 203

10.5 Monitoring of the Partnering Toolkit and Influence on Project Performance 209

10.5.1 Reflective Practice and Action Learning 209

10.5.2 Applying Lessons Learnt for Continual Improvement of the Toolkit 209

10.6 Summary 211

References 212

11 Implications in Practice for Collaborative Trust in Construction 213

11.1 Critical Success Factors for Trust in Collaboration 213

11.1.1 Improvement Measures and Encouraging Best Practice 215

11.2 Embracing Trust-Building Strategies 215

11.3 Fostering Trusting Relationships for Management Outcomes 218

11.4 Nature of Projects and Their Suitability to Trust-Building Strategies and Collaborative Working 219

11.5 Need for Evidence of Project Benefits from Collaboration Management Strategies 220

11.6 Implication for Future Construction Procurement Strategies; Potential Application of the Trust-Building ‘Partnering Toolkit’ 221

11.7 Summary 222

References 223

12 Reflections and Closing Remarks 227

References 228

Appendix A Glossary of Terms 229

References 234

Appendix B List of Abbreviations 237

Appendix C Collaboration Champion/Facilitator Services 239

C.1 Introduction 239

C.2 Facilitation Services 240

C.2.1 Establishment of the Collaborative Project 240

C.2.1.1 Kick-Off Workshop 240

C.2.1.2 Risk Management Workshop 240

C.2.1.3 Communications and Issue Resolution Workshop 240

C.2.1.4 Performance Measurement Workshop 240

C.2.1.5 Project Management Processes and Systems Workshop(s) 241

C.2.2 Support for the Project Management Cycle 241

C.2.2.1 Support to the Core Group 241

C.2.2.2 Risk Management Meetings 241

C.2.2.3 Communications and Issue Resolution Meetings 241

C.2.2.4 Continual Improvement Meetings 241

C.3 Summary 241

Appendix D Partnering Charter (Details of project removed for confidentiality) 243

Index 245