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 contractors in the construction industry has increased during the recent decade. To enhance competitiveness and capacity, and to enter new markets, contractors in the construction industry develop different forms of consortiums. This case study which is done among the Iranian construction contracting firms centers on the issues involved in the first stage of the process of forming a consortium and agreement that must be negotiated between the partners. Results show that some of the key issues affecting the increase in the success rate of the consortium in the construction industry are identifying the objectives and scope of the consortium, clear definition of each stakeholder’s duties, clarifying the financial rules governing the consortium, identifying the decision-makers, and the decision-making mechanisms in the consortium. Therefore, holding effective and efficient meetings at the first stage of the process of consortium formation and increased understanding of the key issues among the stakeholders has a significant effect on the success of consortium performance.