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Transparency, market operation and trust in the Dutch construction industry: an exploratory study


  • Johan Graafland
  • Andre Nijhof


After the discovery of illegal price agreements in the Dutch construction industry, the government and major players in the sector have initiated a transition process towards more professional commercial relations. In the transition process transparency plays an important part, as it is a precondition for better market operation in the construction sector. However, there are significant disadvantages to a pursuit of transparency, such as higher costs and the risk of information overload. It is therefore necessary to find a good balance between more transparency and other ways to restore trust between key players in the construction sector. Especially complex products with a high degree of risk can best be dealt with through implicit contracts, in which trust is based on a mixture of the reputation mechanism, contracts that create a congruity of interests and the integrity of the contract partners.

Suggested Citation

  • Johan Graafland & Andre Nijhof, 2007. "Transparency, market operation and trust in the Dutch construction industry: an exploratory study," Construction Management and Economics, Taylor & Francis Journals, vol. 25(2), pages 195-205.
  • Handle: RePEc:taf:conmgt:v:25:y:2007:i:2:p:195-205
    DOI: 10.1080/01446190600830631

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    References listed on IDEAS

    1. Kaptein, Muel & Wempe, Johan, 2002. "The Balanced Company: A Theory of Corporate Integrity," OUP Catalogue, Oxford University Press, number 9780199255511.
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    Cited by:

    1. Nijhof, A. & Graafland, J.J. & Kuijer de, O., 2009. "Exploration of an agenda for transparency in the construction industry," MPRA Paper 20274, University Library of Munich, Germany.
    2. Alfons Van Marrewijk & Marcel B. Veenswijk, 2016. "Changing institutional practices in the Dutch construction industry," International Journal of Project Organisation and Management, Inderscience Enterprises Ltd, vol. 8(1), pages 44-62.


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