Factors hindering effective partnering in Indian public sector construction organizations

Abstract

Purpose

The Indian public sector construction industry is normally driven by traditional contracting practices. Though no formal partnering agreement is being used in public sector projects in India, improvement in Indian public sector organizations could be observed in the post-liberalization era, as they get the opportunities to work with multinational companies from countries with experiences in partnering. The purpose of this study is to explore the extent of partnering strategies being adopted by Indian public sector organizations and identify factors hindering the adoption of formal partnering.

Design/methodology/approach

Critical success factors for successful partnering were first identified through literature review. This guided the collection of primary data through semi-structured interviews with 36 top management personnel and secondary data in the form of organizational documents and site reports from several site visits of four public sector construction organizations. The evidence collected from four cases were arranged and compared against organizational strategies of successful partnering.

Findings

Most of the strategies adopted by the organizations were found to be in line with the suggested partnering practices. However, partnering performance of these organizations was found to be not satisfactory. This study has identified 14 factors hindering effective partnering such as reservations over joint risk-sharing process, limited bid evaluation criteria, difficulty in time-bound payment to contractor, absence of incentive mechanism, obsolete training procedures and absence of time-bound dispute resolution mechanism.

Research limitations/implications

The research findings are based on a case study with four public sector organizations only. Additional cases need to be undertaken to generalize the findings. Further study should also be undertaken to explore partnering relationships between contractors and subcontractors in public sector projects.

Practical implications

To improve project performance, top management of public sector organizations in India can take these factors into account while formulating strategies on introduction of project partnering in their organizations.

Originality/value

The work is novel providing insights into organizational strategies promoting and hindering partnering in Indian public sector construction organizations.

Citation

Tawalare, A. and Laishram, B. (2019), "Factors hindering effective partnering in Indian public sector construction organizations", Journal of Financial Management of Property and Construction, Vol. 25 No. 1, pp. 83-105. https://doi.org/10.1108/JFMPC-01-2019-0007