An Empirical Study of Contractual Governance and Relational Governance and their Impact on Construction Project Performance

The construction industry holds a pillar position in the national economy, but its efficiency paradox is increasingly prominent. As there are limited studies on the aspect of contract and relational, this study aims to examine the impact of contractual governance and relational governance towards project performance of construction projects in Shanghai using survey to 35 construction project owners. It was found that no contradictory relationship between contract incentives and contract adaptation in construction projects, that is, contract governance in construction projects can achieve both contract incentives and contract adaptation effects, both of which can promote project performance.