chapter  5
12 Pages

Difficulties or potential obstacles in implementing relational contracting

Different parties working on a project are required to commit themselves when RC is implemented (Palaneeswaran et al., 2003). It is not easy to create trust amongst project team members, and it may be difficult to work through traditional confrontational working attitudes. A major reason for a failure to adopt RC is that different parties only give ‘lip service’ when implementing this procurement approach (Construction Industry Institute, 1996; Slater, 1998; Cheng et al., 2000; Ross, 2003). In fact, there always exists a win-lose climate when the traditional procurement method is adopted. Therefore, it is very difficult to change to cooperative and collaborative thinking (Larson and Drexler, 1997). To implement RC successfully, the project participants are required to commit themselves to change and work in an integrated team environment that develops win-win harmonious working relationships (Conley and Gregory, 1999; Lazar, 2000).