Opening the black box of detailed contract drafting and ineffective contract applications in the relationship between quality performance ambiguity and contractor’s opportunistic behaviors: Evidence from Pakistan

Abstract

The present study determined the impact of quality performance ambiguity on contractor’s opportunistic behavior. In order to thoroughly understand the above relationship, the study proposed ineffective contract application as a mediating mechanism. The study also established the moderating effects of detailed contract drafting on quality performance ambiguity and contractor’s opportunistic behavior. Data for the current study were collected through a structured survey from the clients who were awarded project to constructor firms registered with Pakistan Engineering Council. A confirmatory test was employed to test the validity and reliability of the measure. Test of hypotheses was performed through structural models. The results revealed that quality performance ambiguity and ineffective contacts application had significant and positive effect on opportunistic behaviors. However, detailed contact drafting had significant and negative effect on opportunistic behavior. Further, the ineffective contract application had partially mediated on quality performance ambiguity and opportunistic behavior. Further, the detailed contact drafting significantly but positively affected moderated on quality performance ambiguity and opportunistic behavior. Based on the study results, implications for the theory and practice had been drawn.