Purpose The Singapore construction sector is promoting performance improvement by implementing collaborative contracting (CC). For CC's successful implementation, there is a need to sieve out the critical success factors (CSFs). Hence, this paper aims to explore factors influencing the adoption of CC and investigate the potential performance improvement by implementing CC. Design/methodology/approach Based on the literature review, 23 CSFs were identified and packaged to a questionnaire to evaluate the CSF's priority as well as CC's potential impact on the project performance. After prior validation, 165 potential respondents were drawn from survey list by using simple random sampling. Finally, 31 valid responses were received. Findings The survey result showed that the top five CSFs are mutual trust, all parties to commit fully, openness between parties, commitment to a win-win attitude and resource availability. The majority of respondents hold that CC implementation would improve overall project performance, decision effectiveness, cost, time, quality and risk performance. Research limitations/implications Directors, project managers, contractor managers and site engineers have different perceptions of CSFs. Also rather than meeting the same requirements in the implementation of CC, there are differences among projects with different values. Originality/value This study provides an in-depth understanding of the CSFs for industry practitioners adopting CC and CC's potential impact on project performance. This study is also helpful for authorities to formulate effective policies to push the implementation of CC.