Impact of quality performance ambiguity on contractor's opportunistic behaviors in person-to-organization projects: The mediating roles of contract design and application

Contracts are critical for managing projects. However, studies increasingly found that contracts, albeit well written, might not be thoroughly implemented. This study aims to examine the impact of quality performance ambiguity on contractor's opportunistic behaviors in person-to-organization projects and to investigate the mediating role of contract design and application. A questionnaire-survey of 265 dwelling fit-out projects was undertaken in China. The results showed that quality performance ambiguity has great impacts on project development as it hinders detailed contract drafting, results in ineffective contract application and leads to opportunism. The mediation results showed that contract application rather than the written contract mediates the effect of quality performance ambiguity on contractor's opportunistic behaviors. Thus, it is recommended that project managers should pay attention to project characteristics and the gaps between the design and application of contracts in project management.