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 |
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. |