EFFECT OF RELATIONSHIP MANAGEMENT ON CONSTRUCTION PROJECT SUCCESS DELIVERY

Abstract

The dynamic, challenging, and complex nature of the construction projects environment often cause adversarial culture, disputed claims, and deteriorating relationships between project participants. This paper aims to study the correlation between Relationship Management (RM) and construction project success and to develop a framework that includes practical actions, tools, and strategies for managing relationships in construction projects. Literature review and interviews were used to explore and validate the RM’s relevant associated traits. Subsequently, a piloted questionnaire was used to collect the data from 264 construction experts and assess the effect of RM on the overall project success. The data were analyzed using Partial-Least Squares Structural Equation Modeling (PLS-SEM), where the structural and measurement models of the higher and lower order constructed were assessed. The study findings categorized the RM-associated traits into three main pillars: Contractual Measures, Team Interactions, and Top Management Actions. The findings also confirmed that RM has a significant positive effect on the overall success of construction projects. In addition, this paper proposed an integrated framework for managing relationships in construction projects, allowing construction firms to monitor the relationships in their projects and identify key areas for strengthening the relationships throughout their projects to foster their projects’ success rates.