chapter  1
11 Pages

Fundamentals of target cost contracts

The selection of procurement methods for construction projects is a critical factor in achieving project success (Chan and Yung, 2003). The construction industry keeps changing, resulting in more belief that it is essential that procurement methods are tailor-made in order to align the goals and aspirations of various key project stakeholders, agree on the risk allocation mechanism, and decide on what portion of the design and construction the client intends to be integrated. Chapter 1 sets out the basics of TCC and GMP in construction projects.