4.5 Article

Overcoming the principal-agent problem: The need for alignment of tools and methods in collaborative project delivery

Journal

INTERNATIONAL JOURNAL OF PROJECT MANAGEMENT
Volume 40, Issue 7, Pages 750-762

Publisher

ELSEVIER SCI LTD
DOI: 10.1016/j.ijproman.2022.08.003

Keywords

Agency theory; Collaborative project delivery model; Integrated project delivery; Principal -agent; Stewardship theory; Tools

Categories

Funding

  1. Research Council of Norway [273700]
  2. Sorlandets kompetansefond

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This study aims to explore the impact of organizational tools and methods on the relationship between principal and agent, and the importance of overcoming the principal-agent problem. The empirical analysis supports the significance of the alignment of organizational tools and methods for the success of CPDM and deepens the theoretical understanding of CPDM delivery.
Despite the focus on collaborative project delivery models (CPDMs) in the construction industry, it remains unclear how it promises bases for delivering better value for money than many traditional models. In view of the importance of knowledge about CPDM delivery, this study aims to explore governance mechanisms that un-derline the relationship between principal and agent and how this relationship is impacted by the alignment of organisational tools and methods. We argue that there is an interrelationship between agency theory and stewardship theory that provides an important theoretical foundation for CPDMs; additionally, alignment of organisational tools and methods can contribute to overcoming the principal-agent problem in projects if aligned with the functions in CDPMs. An empirical analysis of an exploratory case study supports these assumptions and highlights how CPDM's success can occur through removing and reducing the fundamental principal-agent problem and illustrates the performance and dangers of CPDM tools. Our findings deepen the theoretical un-derstanding of CPDM delivery and provide new insights into the strategic fit in CPDMs alignment in projects.

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