Trust relations in the construction industry

Trust relations are considered a common phenomenon that fulfils internal corporate, business and operational goals as well as external, strategic goals related to geographical expansion. Whether trust appears as a norm or an attitude, it is derived from values on which trust relations are based. Stakeholders representing different individual and organisational interests, needs, expectations, risks and constraints working together in a project environment makes the study of the multifaceted nature of trust complex. This research develops a conceptual framework of trust relations that links the relationship concept and trust to explain trust relations. The theoretical framework adopts a value-based perspective of trust that recognises its moral, social and work dimensions. Trust relations are based on shared values and have a long-term impact on relationships. Trusting behaviour can be observed in situational factors related to the contract, communication, relations with others and conflict. Trust relations based on four different types of trust - namely, contractual trust, knowledge-based trust, goodwill and generalised trust - can be built at the interpersonal and inter-firm levels. This thesis explains trust relations in the construction industry in respect of project management, teamwork, strategy formulation and partnering to highlight their importance. A sample of partnering and non-partnering projects is chosen as case studies. Although trust is emphasised in partnering projects, there is no evidence that trust at either the interpersonal or inter-firm level is higher in partnering projects. A control mechanism for information exchange and timely responses are approaches that help to strike a balance between trust and control in a conflict-prone working environment involving multiple parties. The research shows that individuals have higher expectation of others than themselves and clients and contractors have different values. Trust is found to be morally significant and better understood in the work context. Stakeholders are happy to discuss inter-firm trust freely but are less forthcoming when it comes to interpersonal trust. They consider knowledge-based trust and contractual trust to be comparatively more important than the other types of trust in a project environment. The research reveals that trust is highly bound by intrinsic values and that extrinsic and intrinsic values should be distinguished when trust is regarded as a motivational goal. The research provides an insight into trust relations in the construction industry. A trust model based on the Analytical Hierarchy Process has been devised as part of the research, to evaluate the types of trust prevailing in a project environment. It is suggested that properly planned rules and norms can have an impact on behaviour and fulfil the strategic goal of maintaining good, long-term relationships.