Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/2367
Title: Evaluating guaranteed maximum price and target cost contracting strategies in Hong Kong construction industry
Authors: Chan, Daniel W. M.
Chan, Albert P. C.
Lam, Tsun-ip Patrick
Lam, W. M. Edmond
Wong, James M. W.
Subjects: Guaranteed maximum price
Target cost contracting
Procurement strategies
Interview survey
Hong Kong
Issue Date: Dec-2007
Publisher: Emerald Group Publishing Limited
Source: Journal of financial management of property and construction, 2007, v. 12, no. 3, p.139-149
Abstract: Guaranteed maximum price (GMP) and target cost contracting (TCC) with a pain-share/gain-share arrangement have been adopted to integrate the construction delivery process and motivate service providers to seek continuous improvements in project outcomes. However, there is still a lack of research evidence to evaluate the levels of success and lessons learned from these innovative procurement strategies. Based on the analysis of a series of in-depth interviews on the perceptions of various relevant experienced industrial practitioners, this paper aims to explore the key attributes of GMP/TCC including the underlying motives, perceived benefits, potential difficulties, critical success factors, key risk factors involved and optimal project conditions for adopting GMP/TCC. The research findings are useful in assisting key project stakeholders in minimising the detriments brought about by potential difficulties in and maximising the benefits derived from implementing GMP/TCC concepts. The study is also significant in contributing to new knowledge and practical information of GMP/TCC applications and implementation, in both a national and international context.
Rights: Journal of Financial Management of Property and Construction © Emerald Group Publishing Limited, Glasgow Caledonian University.
Type: Journal/Magazine Article
URI: http://hdl.handle.net/10397/2367
DOI: 10.1108/13664380780001100
ISSN: 1366-4387
Appears in Collections:BRE Journal/Magazine Articles

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