Transparency, market operation and trust in the Dutch construction industry: an exploratory study

Johan Graafland, A.H.J. Nijhof

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    7 Citations (Scopus)

    Abstract

    After the discovery of illegal price agreements in the Dutch construction industry, the government and major players in the sector have initiated a transition process towards more professional commercial relations. In the transition process transparency plays an important part, as it is a precondition for better market operation in the construction sector. However, there are significant disadvantages to a pursuit of transparency, such as higher costs and the risk of information overload. It is therefore necessary to find a good balance between more transparency and other ways to restore trust between key players in the construction sector. Especially complex products with a high degree of risk can best be dealt with through implicit contracts, in which trust is based on a mixture of the reputation mechanism, contracts that create a congruity of interests and the integrity of the contract partners.
    Original languageUndefined
    Pages (from-to)195-205
    Number of pages11
    JournalConstruction management and economics
    Volume25
    Issue number2
    DOIs
    Publication statusPublished - 2007

    Keywords

    • implicit contracts
    • market operation
    • IR-58576
    • Integrity
    • METIS-239669
    • Trust
    • Transparency

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