Relationship marketing and client trust towards contractors within the large private building sector of the UK construction industry

A history of adversarial relationships, resulting in conflict between parties involved in building projects has raised levels of perceived risk for clients working with contractors. Therefore, traditional approaches to marketing management have been found to be inappropriate. The new development in relationship marketing may assist contractors in developing more appropriate marketing strategies. However, trust is essential to the development of positive on-going relationships and if future relationship marketing strategies are going to work, this must first be addressed. With calls for the development of trust, the thesis concentrates on this, whilst taking into consideration the complex exchange process between clients and contractors existing over an extended period of time in any one project. This within what is called the Temporary Multi-organisation (TMO). From the client decision-maker's (CDM) perspective in the large private building sector of the UK construction industry, this thesis empirically examines client attitude and consequential beliefs about trusting contractors. It also examines contractor behaviour affecting client willingness to trust them, whilst allowing for the influence other parties within the TMO have on CDM perspective of the contractor. To do this, two models, the 'Reasoned Action Model' and 'Conditions of Trust Inventory' were executed together through a carefully designed questionnaire survey sent to key decision-makers in 590 leading large client organisations such as BAA, British Land, and major retail, hotel and leisure companies. Depth interviews with leading UK CDMs were used in conjunction with prescribed practice to aid in the design and content of the questionnaire. Given the history of client-contractor relationships, results revealed some interesting findings. Third party influence from architects, colleagues within the CDMs firm, contractors'past clients and sub-contractors were found to be the dominant influence over CDM trust of contractors. Results also show CDMs consider being able to trust contractors as important, reasonable and beneficial. This leads to fewer problems with disclosure of information, less monitoring of contractor performance in terms of quality checks and greater likelihood of a successful project. Also, all ten 'Conditions of Trust' relating to CDM's past experience of contractor behaviour are shown to be affecting the development of trust for future projects. The research makes an original contribution, providing insight into issues affecting client trust toward contractors during projects, whilst identifying areas for action if trust is to be developed. It also provides marketing theory with an insight into trust and relationship management with the TMO, a forerunner to modern virtual organisations.