PolyU IR
 

PolyU Institutional Repository >
Building and Real Estate >
BRE Journal/Magazine Articles >

Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/2369

Title: Identifying the critical success factors for target cost contracts in the construction industry
Authors: Chan, Daniel W. M.
Chan, Albert P. C.
Lam, Tsun-ip Patrick
Wong, James M. W.
Subjects: Guaranteed maximum price
Target cost contracting
Procurement strategies
Critical success factors
Hong Kong
Issue Date: Jul-2010
Publisher: Emerald Group Publishing Limited
Citation: 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.
Description: DOI: 10.1108/14725961011058820
Rights: Journal of Facilities Management © 2010 Emerald Group Publishing Limited
Type: Journal/Magazine Article
URI: http://hdl.handle.net/10397/2369
ISSN: 1472-5967
Appears in Collections:BRE Journal/Magazine Articles

Files in This Item:

File Description SizeFormat
PolyU IR Submission 2010_JFM_2.pdfPre-published version1.06 MBAdobe PDFView/Open
Locate publisher version via PolyU eLinks



Facebook Facebook del.icio.us del.icio.us LinkedIn LinkedIn


All items in the PolyU Institutional Repository are protected by copyright, with all rights reserved, unless otherwise indicated.
No item in the PolyU IR may be reproduced for commercial or resale purposes.

 

© Pao Yue-kong Library, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong
Powered by DSpace (Version 1.5.2)  © MIT and HP
Feedback | Privacy Policy Statement | Copyright & Restrictions - Feedback