Resolving agency issues in client–contractor relationships to deliver project success

In our research, we seek to explain why some relationships between project client and contractors are managed in such a way that leads to success and others are not. In doing so, we analyze how the relational risk that exists when a client sources a project from an external organization is managed. We view the topic through a lens of agency theory and we use a multiple case study research design, analyzing projects from the construction and clinical research business sectors that had varying degrees of success. We extend knowledge of managing relational risk by developing a framework for resolving agency-related issues to deliver project success. The framework encompasses mechanisms to managing relational risk which we classify in five broad areas: contract, understanding, resources, education and delegation - the CURED framework. These areas reflect both formal and informal mechanisms as described in existing literature.