7. Conclusions and future work
7.1 Conclusions and practical implications
Megaprojects in China have long been criticized for confrontational relationships among stakeholders, time and cost overruns and poor project performance. It is of theoretical and practical importance to investigate the effects of contractual flexibility on conflicts and project success. This study focused on the psychological and behavioral conflicts between contracting parties under a formal contract system in megaprojects, and analyzed the relationship between the contractual flexibility, conflicts and project success. In particular, the mediating effect of conflicts between contractual flexibility and project success was studied. Using a questionnaire completed by 468 practitioners in the Chinese construction industry, a theoretical model was constructed and tested with empirical data. The conclusions and practical implications are as follows.
Contractual flexibility in Chinese megaprojects directly or indirectly affects project success. For both direct and indirect effects, flexibility in contractual terms had a greater influence than flexibility in contracting process. This may be because the contracting parties are more focused on the process of signing a contract, while possibly partially neglecting the importance of fulfilling that contract. This study validated both the constructive and destructive sides of contractual flexibility. It also proved that the contractual governance mechanism between contracting parties is a soft factor that promotes the realization of project success. Therefore, the project owner should pay significant attention to the bidder prequalification. A qualified and competent contractual party can reduce project conflict when implementing megaprojects, enhancing the constructive effect of contractual flexibility on project success in megaprojects.