Research On The Impact Of Contract Flexibility On Contractors’ Performance Behavior In Construction Project

Considering the transaction cost and uncertainty of the project performance process,the contract flexibility,which reflects the contract coordination and adaptability,has been paid much attention in theory and practice.The injection of flexibility is regarded as a contract strategy,as distinct from the technical prediction which emphasizes contract control to deal with the uncertainty of the project.From the perspective of flexibility management,the focus of construction project contract management is different from the traditional basic performance management which emphasizes cost control,but gradually turns to the protection of the relationship between the parties and the management idea of increasing project value.However,there is no definite conclusion about the effect of contract flexibility on the contractor’s performance results.Therefore,in order to achieve the project objectives,it is necessary to study the effect of contract flexibility on the contractor’s positive performance behavior.Based on incomplete contract theory and social exchange theory,this research combs and defines the connotation and dimensions of contract flexibility and dimensions of contractor’s performance behavior combined with existing research about contract flexibility and contractor behavior.Among them,this research will be divided into three dimensions: price flexibility,power flexibility and renegotiation flexibility,the contractor’s performance behavior will be divided into two dimensions: perfunctory performance behavior and consummate performance behavior.At the same time,information transparency is introduced as the moderator variable of contract flexibility on contractor’s performance behavior.Some hypothesis is proposed for the relationship between contract flexibility,contractor’s performance behavior and information transparency,and a conceptual model is constructed.By issuing questionnaires and collecting data in Tianjin,Beijing and other places,289 valid questionnaires are finally obtained.Based on the valid data collected by questionnaires,the reliability and validity of the measurement items are tested by SPSS Statistics 21.0 statistical software.And the hypotheses are tested by the Smart PLS 3.0 statistical software of SEM-PLS research method.Through the analysis of data,this research obtains several results as follow:(1)Contract flexibility has incentive effect on performance behavior,and the incentive of distinct flexibility dimension is different.It is reflected in that price flexibility has no effect on the contractor’s performance behavior,power flexibility and renegotiation flexibility have incentive effect on contractor’s performance behavior.However,the incentives of distinct flexibility dimensions are different.In comparison,the effect that power flexibility on perfunctory performance behavior is the most obvious.(2)Information transparency has a moderate effect on the relationship between price/power flexibility and perfunctory performance behavior.It is reflected in that information transparency has a significant moderate effect on the relationship between price flexibility and perfunctory performance behavior.And information transparency has a moderate effect on the relationship between power flexibility and perfunctory performance behavior.Based on the critical deduction,this research draws two stages and three dimensions of contract flexibility,and divides the contractor’s performance behavior into two dimensions: perfunctory performance behavior and consummate performance behavior.The critical path of "contract design-behavioral response" before performance realization is verified.At the same time,the information transparency is introduced as the moderating variable of the relationship between contract flexibility and contractor’s performance behavior,which reveals that the path of "system design-behavioral response" is affected by the moderating variable.In addition,according to the conclusion of this research,some management enlightenments are given: contract flexibility has incentive effect,the employers should adopt the tactics of contract flexibility in contract management.And both parties should pay attention to information transparency through the disclosure and sharing of information.The research results provide a theoretical basis for ensuring further that when the parties adopt flexible strategies,the project objective can be achieved.