Chan, D W M; Lam, P T I; Chan, A P C and Wong, J M W (2011) Guaranteed maximum price (GMP) contracts in practice: A case study of a private office development project in Hong Kong. Engineering, Construction and Architectural Management, 18(2), pp. 188-205. ISSN 0969-9988
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.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Hong Kong; incentive schemes; procurement |
| Index terms: | cost saving, project performance, best practice, motive, case study, Hong Kong, office project, value-for-money, contracting organization, project documentation, project stakeholder, methodology, success factor, face, key attribute, interview |
| Subjects: | economics, research methods, evaluation, project management theory and practice, Geography, sociology, business, risk assessment, construction type, data collection methods, practitioner, psychology, health monitoring assessment and metrics, project planning |
| Topics: | Value Management, Human Resources, Organizational Design, Geographical Context, Project Management, Research Practice, Health and Safety, Cost Management, Business Strategy, Construction Technology, Roles and Professions, Stakeholder Management, Risk Management |
| Descriptive scope: | 4 PCTE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here