Relational contracting in public sector construction organisations: evidence from India
by Abhay Tawalare; Boeing Laishram
International Journal of Public Sector Performance Management (IJPSPM), Vol. 5, No. 2, 2019

Abstract: In construction industry, relational contracting is adopted by many public sector organisations in countries having open economy and benefited in terms of cost saving, schedule reduction, reduced litigations, better teamwork, increased trust and stronger relationship. India is country of planned economy and public sector construction industry is driven by traditional contracting. But public sector working has improved lot in post liberalisation era due to administrative reforms and global exposure. Through case study research methodology, this research explored the extent of relational contracting processes adopted by Indian public sector organisations to become more relational in traditional procurement procedures. It is found that many business processes are improving and matching relational contracting processes. But, key relational processes which develop successful partnering like multiple criteria bid evaluation, incentive mechanism, soft skill training and team building workshops have not been adopted by any case organisation. Within these limitations, it is observed that profit seeking public sector organisation facilitate more relational environment due to flexibility in raising the fund for project and global exposure than public sector organisations funded directly through government budget.

Online publication date: Mon, 15-Apr-2019

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