Relational partnerships: the importance of communication, trust and confidence and joint risk management in achieving project success

Abstract

The advantages of relational partnerships as an alternative project delivery mechanism to the traditional methods have yet to be realized by the wider construction industry. In relational partnerships, all parties work together as a cohesive team to achieve an agreed outcome. However, an accurate estimation of the underlying factors associated with the relationships of these parties and assessment of their impacts on partnering success are difficult to achieve. By identifying three major factors, communication, trust and confidence and joint risk management, this research unfolded the relational links between these factors and analysed the impacts in the context of the relational partnering success. Based on a questionnaire survey and the structural equation modelling technique, results identified communication as the single most influencing factor impacting on relational partnering success. While trust and confidence were found to be mutually inclusive for effective communication, it was found to have direct influence on developing capability for joint risk management within the partnering organizations. This finding diverges from the widely accepted view across the Australian construction industry that partnering is built on trust and confidence only and any risks associated in projects are best dealt with by means of joint responsibility without any problems.

Keywords:

• Relational partnerships
• structural modelling equation
• project success
• procurement methods