Establishing Cooperative Relationships and Joint Risk Management in Construction Projects: Agency Theory Perspective

Through construction contracts, clients and contractors are involved in principal-agent relationships. These relationships are argued to be adversarial and characterised by two main features of contracting parties, as follows: (1) different goals, and (2) different attitudes to risk. Agency-related problems contribute to the project participants concentrating on risks associated with their own parts of projects instead of joint risk management...