Title A Case Study on Causes of the Conflicts Hindering Collaboration between Consortium Participants from Small and Medium-sized Construction Company’s Perspective
Authors 강병창(Kang, Byong-Chang) ; 송진욱(Song, Jin-Wook) ; 이경태(Lee, Kyung-Tae) ; 김희정(Kim, Hee-Jeong) ; 김주형(Kim, Ju-Hyung)
DOI https://doi.org/10.5659/JAIK.2022.38.2.197
Page pp.197-204
ISSN 2733-6247
Keywords Consortium; Joint Contract; Joint Contract System; Joint Venture; Risk
Abstract In the public sector, the joint contract system offers benefits and provides additional opportunities in enabling consortium parties to share risks, improve its technical skills and reward a project more compared to when participating alone. It’s a compulsory rule to include local companies to help facilitate and maintain balance in the development of local regions. Contrary to the purpose behind introducing a joint contract system, detailed institutional laws and operational guidelines have been insufficient, consequently causing difficulties in the management of joint contracts. Specifically, the asymmetric size of parties, specialized human resources and experience influence collaborative efforts during the project phase. Despite asymmetry, the joint contract system was studied from the perspective of major construction companies while focusing on the bidding process. This research aims to explore its conflicts and reasons from relatively small companies based on four stages: bidding, contract, construction and hand-over/termination in H construction company. 30 real cases introducing joint contracts were analyzed along with focus group interviews. The results revealed that risks existed during the preparatory stage of the joint supply and demand operation agreement even after much deliberation due to the differences in company size, some paper companies did not participate in the actual construction process and management regulatory issues surfaced during the organizational phase of the joint supply and demand operation agreement. Therefore, to resolve these conflicts, constant mutual trust is needed between companies and further analysis is necessary from joint contract construction case studies.