I trust you, I trust you not: a longitudinal study of control mechanisms in incentive contracts

Abstract

The relationship between trust and control in client–contractor interactions is explored, focusing on the control mechanisms used in a construction project. A longitudinal case study of a large laboratory construction project found that the client used a variety of control mechanisms to ensure that the contractor behaved trustworthily. Empirical data were gathered through interviews and non‐participant observation. The results indicate that the use of control mechanisms is part of a complex and dynamic socially constructed process that requires ongoing discussion and evaluation, and to which informal control mechanisms are central. Business relationships built solely on trust are seemingly rare; even in trust‐based collaborative settings, such as partnering arrangements; the contracting parties must pay attention to trust‐nurturing actions.

Keywords:

• Longitudinal study
• trust
• control mechanisms
• partnering arrangements
• target cost contracts