THE IMPACT OF THE RELATIONAL CHARTER ON THE PROJECT PRINCIPAL–AGENT RELATIONSHIP

This paper aims to identify variables that define the agency relationship and the relational charter, and the likelihood of the relational charter affecting the agency relationship. However, the link between the two constructs remains unclear. The results from the literature identified the variables that define the agency relationship and the relational charter. Results from a survey of 93 South African project engineers and project managers to demonstrate the impact of the relational charter on the agency relationship. As opposed to literature this research found that the relational charter does not affect the agency relationship positively in all aspects. Descriptive statistics and regression analysis were used to examine the influence of the relational charter on the agency relationship. This unique approach highlights the relational variables that influence agency variables, which should benefit both researchers and practitioners. The findings also revealed that most of the respondents lack an understanding of relational contracting. It is expected that the results of this study will provide project practitioners and other researchers with insight into the factors that impact the agency relationship and relational charter and suggest ways to improve the agency relationship.