A conceptual framework for identifying key performance indicators for target cost contracts
There are diverse opinions on the benefits brought about by TCC and GMP procurement forms. Hughes et al (2011) opined that TCC might not motivate the contractor to minimise the cost. On the other hand, Chan et al (2010a) conducted eight face-to-face interviews and found that TCC and GMP procurement forms could provide financial motivation for the contractor to save cost and innovate. The performance outcomes of TCC and GMP construction projects would thus be an interesting topic of research to provide an objective tool for measuring the overall success of those projects. Based on a research study by Chan and Chan (2012), a conceptual framework for identifying the Key Performance Indicators (KPIs) for TCC is introduced in this chapter.