From agents to stewards? Experiences from a Dutch infrastructure case study

In the construction industry, clients largely depend on contractors to deliver projects. Agency theory describes the problems of goal conflict and information asymmetry that arise in this delegation of work, and is based on the assumption that both the principal and the agent are self-interested. The control-oriented governance mechanisms that agency theorist propose as a means to resolve these problems can act counterproductive and give rise to new problems. Stewardship theory offers a counterweight to agency theory and assumes a relational reciprocity between the principal and the steward. Recently, a large group of Dutch public construction clients and contractors have collaboratively expressed their desire to improve their relationship in a manifest called 'the market vision'. Important aspects in this manifest are the achievement of mutual rather than individual goals, and sharing rather than withholding information during all phases of a project. This can be interpreted as a desire to shift from a principal-agent towards a principal-steward relationship. The aim of this paper is to to identify the factors that drive or constrain the transformation of this relationship and the mechanisms that are used to govern this relationship in practise. This ongoing research is based on a case study of one of the most ambitious projects under the umbrella of this market vision trajectory, including the underlying implementation process at the client and contractor organisations involved in this case. The first observations with the project team and semi-structured interviews indicate that they developed a relationship which can be characterised as a principal-steward bond. By investing in relationship-building from the pre-commercial phase, throughout the tender phase and the execution phase, they put their individual differences beside in order to reach their initially defined common goal. Agency theory is dominant in construction management, but stewardship theory has the potential to offer new insights.