A Decision Model Assessing the Owner and Contractor’s Conflict Behaviors in Construction Projects

Considering the effects of the contractor’s conflict behaviors on the project benefit, a decision model between the owner and contractor’s conflict behaviors in construction projects was constructed using the principal-agent theory and game theory. The model was analyzed under nonconflicting and con...

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Main Authors: Guangdong Wu, Huanming Wang, Ruidong Chang
Format: Article
Language:English
Published: Wiley 2018-01-01
Series:Advances in Civil Engineering
Online Access:http://dx.doi.org/10.1155/2018/1347914
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author Guangdong Wu
Huanming Wang
Ruidong Chang
author_facet Guangdong Wu
Huanming Wang
Ruidong Chang
author_sort Guangdong Wu
collection DOAJ
description Considering the effects of the contractor’s conflict behaviors on the project benefit, a decision model between the owner and contractor’s conflict behaviors in construction projects was constructed using the principal-agent theory and game theory. The model was analyzed under nonconflicting and conflicting conditions, and a numerical simulation and example analysis were proposed to verify the constructed model’s conclusion. The results showed that the effort levels of the owner and contractor not only relate to benefit-sharing coefficient and effort outcome coefficient but also depend on the contractor’s ability of converting the conflict into benefit and the loss caused by conflict behaviors. A higher ability of converting conflicts into benefits and lower levels of the loss caused by conflict behaviors for the contractor lead to lower levels of the net benefit of the owner, conversely higher levels of the net benefit of the contractor. Balancing the contractor’s ability of converting conflicts into benefits and the loss caused by conflict behaviors lead to a more reasonable risk allocation between the owner and contractor, improving the effort level and net benefit. To add value to the construction project, the owner should establish an impartial and reasonable benefit-sharing mechanism, optimize the owner and contractor’s resource arrangement, maximize the positive effect of conflict on project benefits, and avoid the negative effect of conflict. Few studies to date have investigated the effects of conflict behaviors on project benefits in terms of modeling and simulation in construction projects. As such, this study bridges this gap and contributes significant theoretical and practical insights about managing conflict behaviors in an interorganizational context, thus enhancing performance in construction projects.
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spelling doaj-art-06ae31bf26b446acad411d904ce7caca2025-02-03T00:59:15ZengWileyAdvances in Civil Engineering1687-80861687-80942018-01-01201810.1155/2018/13479141347914A Decision Model Assessing the Owner and Contractor’s Conflict Behaviors in Construction ProjectsGuangdong Wu0Huanming Wang1Ruidong Chang2Department of Construction Management, Jiangxi University of Finance and Economics, Nanchang 330013, ChinaFaculty of Humanities and Social Sciences, Dalian University of Technology, Dalian 116024, ChinaCentre for Comparative Construction Research, Faculty of Society and Design, Bond University, Gold Coast, QLD 4226, AustraliaConsidering the effects of the contractor’s conflict behaviors on the project benefit, a decision model between the owner and contractor’s conflict behaviors in construction projects was constructed using the principal-agent theory and game theory. The model was analyzed under nonconflicting and conflicting conditions, and a numerical simulation and example analysis were proposed to verify the constructed model’s conclusion. The results showed that the effort levels of the owner and contractor not only relate to benefit-sharing coefficient and effort outcome coefficient but also depend on the contractor’s ability of converting the conflict into benefit and the loss caused by conflict behaviors. A higher ability of converting conflicts into benefits and lower levels of the loss caused by conflict behaviors for the contractor lead to lower levels of the net benefit of the owner, conversely higher levels of the net benefit of the contractor. Balancing the contractor’s ability of converting conflicts into benefits and the loss caused by conflict behaviors lead to a more reasonable risk allocation between the owner and contractor, improving the effort level and net benefit. To add value to the construction project, the owner should establish an impartial and reasonable benefit-sharing mechanism, optimize the owner and contractor’s resource arrangement, maximize the positive effect of conflict on project benefits, and avoid the negative effect of conflict. Few studies to date have investigated the effects of conflict behaviors on project benefits in terms of modeling and simulation in construction projects. As such, this study bridges this gap and contributes significant theoretical and practical insights about managing conflict behaviors in an interorganizational context, thus enhancing performance in construction projects.http://dx.doi.org/10.1155/2018/1347914
spellingShingle Guangdong Wu
Huanming Wang
Ruidong Chang
A Decision Model Assessing the Owner and Contractor’s Conflict Behaviors in Construction Projects
Advances in Civil Engineering
title A Decision Model Assessing the Owner and Contractor’s Conflict Behaviors in Construction Projects
title_full A Decision Model Assessing the Owner and Contractor’s Conflict Behaviors in Construction Projects
title_fullStr A Decision Model Assessing the Owner and Contractor’s Conflict Behaviors in Construction Projects
title_full_unstemmed A Decision Model Assessing the Owner and Contractor’s Conflict Behaviors in Construction Projects
title_short A Decision Model Assessing the Owner and Contractor’s Conflict Behaviors in Construction Projects
title_sort decision model assessing the owner and contractor s conflict behaviors in construction projects
url http://dx.doi.org/10.1155/2018/1347914
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