Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/3666
Title: Guaranteed maximum price (GMP) contracts in practice : a case study of a private office development project in Hong Kong
Authors: Chan, Daniel W. M.
Lam, Tsun-ip Patrick
Chan, Albert P. C.
Wong, James M. W.
Subjects: Hong Kong
Incentive schemes
Procurement
Issue Date: Mar-2011
Publisher: Emerald Group Publishing Limited
Source: Engineering, construction and architectural management, 2011, v. 18 no. 2, p. 188-205
Abstract: Purpose – This paper aims to investigate the operational mechanism, project performance, motives behind, benefits, difficulties and success factors of adopting the guaranteed maximum price (GMP) scheme based on a real-life case study of Chater House, an international Grade A private office project in Hong Kong.
Design/methodology/approach – The case project was analysed by means of the related project documentation and a series of face-to-face interviews with the relevant senior project representatives.
Findings – All the interviewed key project stakeholders perceived that the GMP contract helped achieve competitive price, value for money and superior quality of products as well as provided stronger incentives to innovation and cost saving. The case study revealed that the overall success of this GMP project was underpinned by several key attributes.
Originality/value – The paper provides solid groundwork for client bodies and contracting organisations to develop a best practice framework for implementing successful GMP schemes in future construction.
Rights: Engineering, Construction and Architectural Management © 2011 Emerald Group Publishing Limited
Type: Journal/Magazine Article
URI: http://hdl.handle.net/10397/3666
DOI: 10.1108/09699981111111157
ISSN: 0969-9988
Appears in Collections:BRE Journal/Magazine Articles

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