I Don’t Trust You, But Why Don’t You Trust Me? Recognizing the Fragility of Trust and Its Importance in the Partnering Process - Chapter 19 - AAA Handbook on Construction Arbitration and ADR - Third Edition
Jeffrey S. Busch PMP is an Independent Consultant and has been instrumental in
developing the Project Management Alignment Program–PMAP (Partnering). He promotes
the use of ADR processes and is an active third-party neutral and DRB panel member.
Nicole Hantusch currently works as a Manager with a German banking institution
and continues to expand her interest in the field of organizational development and
business dynamics.
I. Introduction
Vladimir Lenin, leader of the Russian Revolution, said: “Trust is
good, but control is better.” Today, many people in the business world
operate with the same attitude and miss the opportunities for success that
are available when they dare to establish trust. Control and lack of trust
characterize many personal and working relationships. What is it that
makes it so difficult for us to trust other people nowadays?
Often the main perceived barrier to a successful construction project
is the contract, which implies that the issue is money. Both parties
remain unaware that trust is a more powerful barrier to a successful
project than either the contract or the money involved. Experience has
shown that if trust has been established, negotiations about the contract
and money are fairer.
But trust is not just needed while negotiating a contract or the price
for extra work, it is essential throughout the duration of the project for
many reasons. For instance, trust is needed to perceive the intentions of
the other party correctly, to exchange important information, or to have
confidence in the other party’s ability to meet contract obligations. If
trust is established between the owner and the contractor at the beginning
of a project, respect, commitment, and accountability become part of
their relationship.
However, building trust is not an easy task, especially in the
construction industry, where the relationship between parties is often
characterized by shifting risk, contract language, and adversarial
perspectives.
I. Introduction
Vladimir Lenin, leader of the Russian Revolution, said: “Trust is
good, but control is better.” Today, many people in the business world
operate with the same attitude and miss the opportunities for success that
are available when they dare to establish trust. Control and lack of trust
characterize many personal and working relationships. What is it that
makes it so difficult for us to trust other people nowadays?
Often the main perceived barrier to a successful construction project
is the contract, which implies that the issue is money. Both parties
remain unaware that trust is a more powerful barrier to a successful
project than either the contract or the money involved. Experience has
shown that if trust has been established, negotiations about the contract
and money are fairer.
But trust is not just needed while negotiating a contract or the price
for extra work, it is essential throughout the duration of the project for
many reasons. For instance, trust is needed to perceive the intentions of
the other party correctly, to exchange important information, or to have
confidence in the other party’s ability to meet contract obligations. If
trust is established between the owner and the contractor at the beginning
of a project, respect, commitment, and accountability become part of
their relationship.
However, building trust is not an easy task, especially in the
construction industry, where the relationship between parties is often
characterized by shifting risk, contract language, and adversarial
perspectives.