- Author
- Construction Industry Institute
- Title
- Cost-Trust Relationship.
- Coporate
- Construction Industry Institute, Austin, TX
- Report
- Publication 24-1, November 1993, 40 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 CII research data from 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 project parties. Concepts such as partnering, team-building, cooperative alliances, and alternative dispute resolution are actively promoted by CII. These concepts are becoming increasingly embraced to increase the level of cooperation between project participants. One of the basic elements of a cooperative relationship is mutual trust. Trust is a salient factor in determining the effectivenss 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.