Claims culture and client-contractors’ willingness to engage in future projects: a multivariate analysis


Inter-parties’ relationships in construction contracts are laden with relational problems. The lifecycle of a typical relationship in the traditional procurement framework model is one-off. Stakeholders’ willingness to engage in the future based on past contract exchange characteristics such as contract claims also vary. Limited research, however, reports on the relationship between the exchanges characteristics in past projects and the parties’ willingness to engage in the future. This study determined the influence of claims culture on client-contractors’ willingness to engage in future projects. The objectives evaluated the prevalent claims, the relationship ties, and the correlation between claims and clients-contractors’ relationships. Survey data from 200 architects, engineers, and quantity surveyors in Southeast, Nigeria was analysed using multivariate approaches. The results showed payments and measurements, variations, errors and omissions, direct changes, and fluctuation claims are frequent. Projects with high claims also developed less interaction, exchange, longevity, relationship atmosphere, mutual orientation, and dependence towards a future relationship. The implication suggests frequent claims weaken client-contractors relationship ties and the willingness to engage in future projects. Lowering claims culture in projects would therefore promote parties’ willingness to recreate past relationships in the future. Contracting parties need to increase their level of adaptations to improve exchange satisfaction, and relationship ties to suppress adversarial behaviours by applying relational norms to claims management.

Author(s): Ekung, S., Okonkwo, C. and Nwosu, E.
Published online:  April, 2021

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