Using a two$-$pronged research design, i$.$e$.,$ a questionnaire survey and in$-$depth interviews, this study investigated whether contract strategies affect project outcomes and interpersonal relations among contracting parties in public construction projects in Australia. The results show that contracting parties in public projects adopt a balanced approach that does not lean towards formal controls and rational choice or relational contracting. It was also found that cost performance $($Y$1),$ client satisfaction $($Y$4),$ and relationships among contracting parties $($Z$1$ to Z$4)$ are significantly correlated with contract strategies $($X$1$ to X$3).$ The findings add to the current knowledge base by showing that contract strategies are essential and may affect the project performance outcome and relationship quality among contracting parties of public projects. It is$,$ therefore, important for contracting parties to pay attention to relational contracting when managing public construction projects.

The study also identified RC practices significantly correlated with contract strategies $($X$1$ to X$3).$ Among the $20$ practices significantly correlated with contract strategies, $16$ are related to clients and consultants, suggesting that clients and consultants play an essential role in setting the tone of the relationship in a project. It is recommended that owners and consultants adopt the practices identified in Table $6$ because these are the practices in place when relational contract strategies relationships are adopted. These lead to better relationships, cost performance, and client satisfaction.

The scope of this study is limited to investigating the associations among RC practices, contract strategies, and outcomes in Sydney, Australia. The interrelation between project outcome variables $($Y$1$Y$4)$ and relationship variables $($Z$1$Z$4)$ is outside the scope of this paper but could be a subject of future research. One limitation faced in this study is the small number of valid responses due to the difficulty in collecting data in Sydney, Australia, by a team based in Singapore. Consequently, this study could not adopt advanced analysis techniques like structural equation modelling to explain the complex interrelationship among a set of constructs and variables. The following limitation is that contracting parties, especially contractors, may not have complete information on cost and time performance to inform this research. To control the number of outcome variables to reduce complexity in data collection, this study chose client satisfaction instead of stakeholder satisfaction, such as satisfaction experienced by contractors and consultants. In future studies, more data sets could be collected to compare RC practices and contract strategies of the various contracting parties, the satisfaction of different stakeholders, and other parts of Australia. A case study approach could also be considered, whereby data could be collected from various team members for the same project to gather complete information. Relational transactions may be dependent on the capabilities and skills of the individuals. A future study could investigate the relative ability of the individuals participating in the contract.

Considering the intricate nexus between contract strategies, project outcomes, and interpersonal relations in public construction projects as delineated in the research, which of the following hypotheses accurately encapsulates the nuanced dynamics observed?

Question $10$Answer

Hypothesis $1$: Contract strategies exhibit a deterministic influence on project outcomes, thus implying a direct causative relationship between the two variables within the context of public construction projects.

Hypothesis $2$: The observed correlations between contract strategies, project outcomes, and interpersonal relations suggest a multidimensional interdependency, highlighting the need for a comprehensive understanding of the contextual nuances inherent in public construction project management.

Hypothesis $3$: Contrary to conventional assumptions, the study identifies a linear relationship between contract strategies and interpersonal relations, thereby substantiating a deterministic paradigm in the domain of public construction project management.

Hypothesis $4$: Through an exhaustive analysis of RC practices, the research advocates for an absolute reliance on these practices as the sole determinants of optimal project performance and favorable interpersonal relations among contracting parties.