Effects of Negotiations about the Formation of Construction Consortium on Consortium Successful Performance in Iran’s Construction Industry

Growth rate in the number of consortiums formed between Iranian contractorsin the construction industry has increased during the recent decade. To enhancecompetitiveness and capacity, and to enter new markets, contractors in theconstruction industry develop different forms of consortiums. This case studywhich is done among the Iranian construction contracting firms centers on theissues involved in the first stage of the process of forming a consortium andagreement that must be negotiated between the partners. Results show that someof the key issues affecting the increase in the success rate of the consortium in theconstruction industry are identifying the objectives and scope of the consortium,clear definition of each stakeholder’s duties, clarifying the financial rulesgoverning the consortium, identifying the decision-makers, and the decisionmakingmechanisms in the consortium. Therefore, holding effective and efficientmeetings at the first stage of the process of consortium formation and increasedunderstanding of the key issues among the stakeholders has a significant effect onthe success of consortium performance.

Effects of Negotiations about the Formation of Construction Consortium on Consortium Successful Performance in Iran’s Construction Industry Keywords:

Construction consortium , process of consortium formation , process of negotiations , description of the partners’ duties , mutual trust