Determinants of relational contracting for Indian public sector construction industry

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Relational contracting has been increasingly used as an innovative tool for cost saving, schedule reduction, reduced litigation, improved teamwork, increased trust, stronger relationships, and overall satisfaction for contractual parties. India is country with a planned economy, and its public sector construction industry operates by traditional contracting. Although infrastructure projects in India are infamous for delays and cost overruns, public sector organizations have improved significantly in the post-liberalization era, due to administrative reforms and global exposure.In this context, this study employs a case study research methodology, and examines the cases of four public sector construction organizations working across various infrastructure sectors. It uses a mixed methods procedure combining qualitative and quantitative approaches to research for data collection and data analysis. First, it explores the extent to which relational contracting strategies are being used by these organizations to adopt more relational procurement procedures. The data is analyzed by pattern matching using cross-case analysis. It is found that many of the organizational strategies being used by the case organizations match relational contracting strategies. However, key partnering strategies for successful relational partnerships such as multiple criteria bid evaluation, incentive mechanisms, soft skill training, and team-building workshops are not employed in the case organizations.
Supervisor: Laishram Boeing Singh