Research On The Influence Of The Cooperative Relationship Between The Designer And The Construction Party On The Project Performance Under The EPC Mode

With the increasing adoption of EPC Model(Engineering,Procurement and Construction),the construction of large-scale and complex construction projects has changed from DBB model to EPC model.Meanwhile both the domestic design institutes and the construction enterprises have gradually transformed into general contractor with their relationship evolving into a new cooperative type.Due to the temporary characteristics of the EPC organization,the cooperation between the designer and the general contractor is also temporary,which is different from the one between the developer and the contractor or the one between the government and the social capital under PPP model.This new type of cooperative relationship mainly relies on relationship governance with the contract governance as the supplement.The existing literature shows this cooperation has an important impact on the project performance as well as the success of the project.In the discussed cooperation,trust is the foundation,incentive is the pivotal support,and the perception of fairness is a key factor in maintaining good cooperation.In addition,communication,commitments,and industry practices also play important roles.Following above,this article discusses the influence of trust,communication,commitment,industry practices,fairness perception,and incentives on the cooperation between the designers and general contractors under EPC Model as well as on the project performance.First,this article conducts analysis on the relationship among relationship governance,perception of fairness,incentives,and project performance.Then 17 assumptions are developed covering the following aspects:(1)the impact that relationship governance,incentives,and fairness perception have on the cooperation,(2)the impact that the cooperation has on project performance,(3)the assumption that fairness perception and incentives are the mediating variables between relationship governance and cooperation.Based on the above,a theoretical model of the impact of the cooperation of the designer and the contractor on project performance is constructed.Based on literature maturity scale,a measurement scale was designed,and a questionnaire was formed.A questionnaire survey was conducted among the experienced general contractors.590 feedbacks were valid.Then using AMOS26.0 structural equation software,the author conducted the path analysis and the mediation effect analysis on the model.The research results suggest:(1)Trust,communication,and commitment have a significantly positive effect on both incentives and perceptions of fairness.And the various factors of relationship governance have a positive impact on the cooperation between the designer and the contractor;(2)distribution fairness and procedural fairness in the perception of fairness and external incentives within incentives have an intermediary role among trust,communication,commitment,industry practices and cooperation,on the contrary,interaction fairness and internal incentives have little effect;(3)the cooperation between the designer and the contractor has a significant positive effect on project performance.Then the article recommends that project performance could be increased by improving the cooperation relationship between designers and contractors which could be achieved by developing a reputation management platform,by establishing an overall project communication mechanism,by creating a fair cooperation environment,by improving the incentive system.This article extends the understanding on the cooperation between the designer and the contractor of the EPC project.The research results will help to improve economic efficiency and benefit the development of the national economy and society by responding to national policies and by providing theoretical basis and methods for both the construction enterprises upgrading and the development of the EPC model.