Using Social Interaction Theory to Promote Successful Relational Contracting between Clients and Contractors in Construction

The construction industry, with its adversarial culture, could use relational contracting (RC) to improve project outcomes by nurturing healthy social interactions among its key players, particularly clients and contractors. The aim of this research is to investigate the application of social interaction theory in RC in construction. A literature review was used to identify factors from social interaction theory that affects RC performance. These factors were verified by experts and practitioners to determine their relevance. Questionnaires were then distributed to measure the level of implementation of the verified factors in the Pakistani construction industry. In total, 204 data were collected and analyzed using factor analysis and structural equation modeling. The findings suggest that in order to have successful RC, clients and contractors must identify motivational factors, develop a collaborative culture, and establish structured interactions. The research has found 6 dimensions and 36 factors that are essential for this process.