The Research On Establishing And Maintaining Of Owner’s Trust On Contractor — Simulation, Empirical Study And Strategies

Proper risk allocation plays an active role in improving project management performance, but the general paradox of decision-making that the owners does not use proper risk allocation scheme to facilitate contract implementation makes the adverse selection, which lies in the lack of initial trust in construction market and the owners into a trust dilemma. The reason why the owners hovering between trust and distrust is the fear of contractors’ information cannot be determined, even if the elaborated evaluation of contractors’ intent, ability and motivation cannot guarantee the contractors acting dutifully. The limited credible elements cognition of contractor and the negative expectations of contractors’ moral hazards lead to the distrust of owners and the improper risk allocation scheme of contract, which make the owners select adversely in risk allocation. The governance of trust dilemma lies in establishing the path of initial trust and maintaining the afterwards trust. Accordingly, this paper makes a theoretical research for the above scientific problem in the following three areas:Based on grounded theory, an initial trust evolutionary path is proposed under Chinese construction project management scenarios. Firstly, items were designed according to the layer by layer "scenario into" semi-structured interviews to gain the scientific question. Secondly, standards of interviewer indicators were set according to the focus group to ensure the suitability of the sample, and then get the three coding qualitative analysis of the material data. Finally, an exploratory theory model was built for the evolution of initial trust.The research hypotheses for the formation mechanism of initial trust were authenticated based on structural equation model(SEM). Firstly, on the basis of the proposed exploratory model and the existing research conclusion, this paper makes research hypotheses for the formation of initial trust. Secondly, issue small sample pre-test questionnaires to the interviewers who meet the selecting criteria, and the obtained data were analyzed using SEM. Finally, the proposed hypothesis are verified finally.The conditions for maintaining trust stability based on system dynamics model is studied. Through the analysis of existing research and theoretical literature, the system dynamics model for maintaining trust stability is built. In premise of effectiveness validation of the model, this paper makes the simulation prediction to analyze simulation results of the model, and proposed the conditions for maintaining the trust stability of owners.This paper makes a systematic research of trust under Chinese construction project management scenarios, which contributes to the theoretical research of the trust and provides a reference and theoretical support for the follow-up research. The proposed suggestions and strategies could help to alleviate the plight of trust dilemma, to help the owners to choose proper risk allocation scheme, and to provide a new impetus for owners and contractors to strengthen their cooperation.