https://doi.org/10.24928/2017/0283

Investigating Organizational Capability Vis-à-Vis Human Action to Minimize Post-Contract Transaction Costs in D&B

Christy P. Gomez¹ & Abdulazeez U. Rajk²

¹Associate Professor, Department of Construction Management, Universiti Tun Hussein Onn Malaysia, Johor, [email protected]
²Lecturer, Department of Architecture, Modibbo Adama University of Technology Yola, Adamawa State, Nigeria, [email protected]

Abstract

This paper examines the role of human action for benefits realization (BR) with respect to minimizing post-contract transactions costs (PTCs) in D&B construction projects. PTCs are commonly associated with monitoring and control, dispute resolution, and implementation activities during the construction phase of projects. This is also an attempt to reaffirm the innovative potentialities of the D&B procurement approach. Viewing BR as an emergent phenomenon, the relationship between the independent constructs of contractors’ team-competency and teamcommitment with the dependent construct PTC in Malaysian D&B projects are examined by means of hypothesis testing. Questionnaire survey data from a sample of major D&B contractors in Malaysia was analysed using SmartPLS 3 to test the two main hypothesis. The questionnaire survey was designed based on collation of past literature findings and validated using a Delphi study undertaken with D&B experts. Results indicate that contractor team-commitment has an overall positive and significant influence on minimizing PTCs whilst team-competency has a strong positive and significant influence. The findings also confirm that affective commitment of D&B contractors' team to be the most significant factor. These findings establish the extent to which human agency within its interplay with structure can impact on construction project performance in D&B projects.

Keywords

Benefits realization, competency, post-contract transaction costs (PTCs), design & build projects

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Reference

Gomez, C. P. & Rajk, A. U. 2017. Investigating Organizational Capability Vis-à-Vis Human Action to Minimize Post-Contract Transaction Costs in D&B , 25th Annual Conference of the International Group for Lean Construction , 27-34. doi.org/10.24928/2017/0283

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