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• W3217649896 abstract "In light ofincreasing project complexity, constraintsonprogramme schedule and limited budget, thereexistsa strongcallforchangesin contracting procedures in construction. Both the Guaranteed Maximum Price (GMP) and Target Cost Contracting (TCC) approaches with a gain-share/pain-share arrangementhavebeenadvocatedtoachievebettervalueformoneyandmoresatisfactoryprojectperformance.Thispaperaimstoreviewtheprevailing practicesofGMP/TCCingeneral,andexplorethemotivesandbenefitsofimplementingtheGMP/TCCschemeincomparisonwiththetraditionalfixedprice lump-sum contract in particular. The research study is based on a comprehensive literature review and an industry-wide empirical questionnaire surveyforevaluatingtherelativeimportanceofmotivesandbenefitsassociatedwithGMP/TCCinHongKong.Thesurveydatacollectedfrom45valid completedquestionnaireswereanalysedusing the meanscore ranking technique,Kendall'sconcordance test, Spearman's rankcorrelationtestandonewayANOVAtest.Theperceivedbenefitsweremeasuredandrankedfromtheperspectivesoftheclient,contractorandconsultantforcross-comparison. The survey findings indicated that the three most common motives of clients behind their decision of adopting GMP/TCC include: (1) to generate an incentive forcontractor to achieve cost saving; (2) todevelop betterworking relationship within the project team; and (3)totap incontractor's expertise in design and innovation. The top three perceived benefits of applying GMP/TCC were found to be: (1) early settlement of final project account; (2) improved partners' working relationship under a partnering arrangement; and (3) capability of integrating contractor's expertise in building designs and innovations prior to construction. The research results are particularly essential in assisting key project stakeholders to realise the potential benefits derivedfrom the use of GMP/TCC contracts and ingenerating more useful insights into alternative integratedcontracting strategies forthe construction industry, so as to drive for excellence in overall project performance. © 2010 Elsevier Ltd. and IPMA. All rights reserved." @default.
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• W3217649896 date "2010-01-01" @default.
• W3217649896 modified "2023-10-03" @default.
• W3217649896 title "An empirical survey of the motives and benefits of adopting guaranteed maximum price and target cost contracts in construction" @default.
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