- Author
-
Salazar, G. F.
|
Serrambana, V. M., Jr.
|
Denney, T. J., Jr.
|
Farrell, T.
- Title
- Cost-Trust Relationship in the Construction Industry.
- Coporate
- Worcester Polytechnic Inst., MA
- Report
-
Source Document 100
September 1994
218 p.
- Keywords
-
construction
|
costs
- Abstract
- Trust is believed to be a factor in reducing project costs, while a lack of trust in business relationships is thought to be related to inefficiencies and increased project costs. Based on research data form 262 projects, the intuitive notion that mutual trust and project cost are correlated is now statistically supported. In the construction industry, it is important to foster cooperation among parties. Concepts such as partnering, team-building, cooperative alliances, and alternate dispute resolution are actively promoted by the Construction Industry Institute. These concepts are becoming increasingly embraced to increase the level of cooperation betwee project participants. One of the basic elements of a cooperative relationship is mutual trust. Trust is a salient factor in determining the effectiveness of many relationships. It facilitates interpersonal acceptance and openness of expression. A trusting relationship between the parties is based on a mutual understanding of each other's capabilities and limitations. It is also based on the personal and corporate integrity of both parties. Trust is a basic ingredient in effective team-building, timely decision-making, and in building long-term relationships.