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http://hdl.handle.net/10397/2369
| Title: | Identifying the critical success factors for target cost contracts in the construction industry | Authors: | Chan, DWM Chan, APC Lam, TIP Wong, JMW |
Issue Date: | Jul-2010 | Source: | Journal of facilities management, 2010, v. 8 no. 3, p. 179-201 | Abstract: | Purpose – The paper aims to present a succinct review of guaranteed maximum price (GMP) and target cost contracting (TCC) concepts and features in general, and to identify the critical success factors for procuring GMP/TCC contracts from the Hong Kong perspective in particular. Design/methodology/approach – By means of an empirical questionnaire survey geared towards industrial practitioners with direct hands-on GMP/TCC experience, the opinions of various contracting parties including clients, consultants and contractors were solicited, analysed and compared in relation to GMP/TCC success factors. Findings – Experienced practitioners shared the unanimous perception that: reasonable share of cost saving and fair risk allocation; partnering spirit from all contracting parties; right selection of project team; well-defined scope of work in client's project brief and early involvement of contractor in design development, are the most essential ingredients for the successful implementation of GMP/TCC scheme. Research limitations/implications – Although the research study is based in Hong Kong with a limited sample size, the survey findings and hands-on experience of the relevant industrial practitioners may be cross-referenced to other similar investigations in other parts of the world for international comparisons. Originality/value – The research study has provided some useful insights into assisting key project stakeholders in determining important successful ingredients when launching GMP/TCC scheme. Such an identification of critical success factors would be valuable in formulating effective practical strategies to improve overall project performance, create win-win opportunities for contracting parties and mitigate the occurrence of construction disputes/claims. It also attempts to seek more research evidence to capture the levels of success and lessons learned from previous GMP/TCC construction projects for generating best practice recommendations for future implementation. |
Keywords: | Guaranteed maximum price Target cost contracting Procurement strategies Critical success factors Hong Kong |
Publisher: | Emerald Group Publishing Limited | Journal: | Journal of facilities management | ISSN: | 1472-5967 | EISSN: | 1741-0983 | DOI: | 10.1108/14725961011058820 | Rights: | Journal of Facilities Management © 2010 Emerald Group Publishing Limited |
| Appears in Collections: | Journal/Magazine Article |
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| File | Description | Size | Format | |
|---|---|---|---|---|
| PolyU IR Submission 2010_JFM_2.pdf | Pre-published version | 1.06 MB | Adobe PDF | View/Open |
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