Study on the Improvement Strategy of Trust Level between Owner and PMC Contractor Based on System Dynamics Model

Abstract

Based on the theory of system dynamics, we investigated the factors influencing the trust relationship between owners and PMC contractors in a Chinese management scenario, and proposed effective management strategies to increase the level of trust between the two parties. In the early stages of PMC project implementation, calculative trust between the owner and the PMC contractor predominated, while relational trust predominated in the middle and late stages. The applicability of the PMC model and the control configuration between the owner and the PMC contractor are also vital factors influencing the trust level. Principal determinants of calculative trust are the management capability and reputation of the PMC contractor, the sufficiency of the owner’s authorization, and the efficacy of the owner’s supervisory measures. There are four factors that influence relational trust, in order of decreasing influence: the sufficiency of the owner’s authorization, the effectiveness of the owner’s supervisory measures, the social similarity between the owner and PMC contractor, and the management capability and reputation of the PMC contractor. The research can be used as a guide for enhancing PMC project management performance and achieving PMC project success.