The purpose of our study is to enhance the understanding of relationships between conflict management style, team coordination, and performance in multicultural project team contexts. We investigate how conflict management can contribute to team effectiveness through the mediation of the level of team coordination by collecting data from 126 team leaders and supervisors and 378 members nested in different multicultural projects in the construction industry. Our results show that, contrary to the findings from prior research in other team contexts, an avoiding style of conflict management can have a positive impact on the performance of multicultural project teams.