Influence of Contractors’ Trust in Project Owners on Contractors’ Perception of Open-Book Contracting

This study investigated how contractors’ trust in project owners influences contractors’ perceptions of open-book contracts. Open-book contracting is often considered a key enabler of advanced project delivery methods, such as integrated project delivery and construction management at risk. However, contractors may perceive it negatively because cost information reveals profit margins and performance. This study hypothesized that contractors with higher trust in project owners are likely to perceive open-book contracts favorably. To test this hypothesis, a research model was developed comprising the perception of open-book contracting (perceived usefulness and intention to use), trust (calculative and relational trust), and antecedents of trust. Survey data collected from 138 practitioners in South Korean contractor firms were tested using structural equation modeling. The findings showed that relational trust positively affects perceived usefulness, which, in turn, enhances the intention to use. Moreover, calculative trust indirectly influences perceived usefulness through relational trust. By providing empirical evidence of the relationship between trust and the perception of open-book contracting, this paper offers practical insights into how contractors and project owners can build trust, thereby contributing to the wider adoption of advanced project delivery methods in the construction industry.