Target cost contracts

Adopting innovative incentive mechanisms to improve the project delivery process

Trefor Williams, Michael Williams, Paul Ryall

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

Target Cost Contracts are widely recognised as cost-led procurement models which incentivise client and contractor to work collaboratively and develop mutual gains. Their use on recent high profile projects and inclusion in the recently published UK Government Construction Strategy recognises Target Cost Contracts as a "cost-led procurement model." They have been identified as a model capable of producing the "15-20%" cost savings required for public sector construction projects by 2015, and act as key drivers for their use. This research aims to facilitate innovation in future Target Cost Contracts by expanding the current incentives offered to include a wider variance of stakeholders and performance metrics. A cross-sectional study utilising semi-structured interviews to test the initial findings generated by the literature review was employed to validate the use of such innovative incentives. Incentivising alternative performance metrics is required to generate greater motivation amongst project stakeholders, although there was insufficient evidence to suggest that incentive frameworks could achieve this. Incentive frameworks to include the design team and alternative performance metrics have been defined for testing in future research which could be pilot tested in practice.

Original languageEnglish (US)
Title of host publicationProceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013
EditorsS.D. Smith, D.D. Ahiaga-Dagbui
PublisherAssociation of Researchers in Construction Management
Pages759-768
Number of pages10
ISBN (Electronic)9780955239076
StatePublished - Jan 1 2013
Event29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013 - Reading, United Kingdom
Duration: Sep 2 2013Sep 4 2013

Publication series

NameProceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013

Other

Other29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013
CountryUnited Kingdom
CityReading
Period9/2/139/4/13

Fingerprint

Costs
Lead
Contractors
Incentive mechanism
Project delivery
Incentives
Target cost
Innovation
Performance metrics
Testing
Procurement
Stakeholders
Public sector
Cost savings
Cross-sectional studies
Inclusion
Literature review
Structured interview
Construction project
Government

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Building and Construction
  • Management of Technology and Innovation

Keywords

  • Incentivisation
  • Key performance indicator
  • NEC3
  • Performance metrics
  • Target cost contract

Cite this

Williams, T., Williams, M., & Ryall, P. (2013). Target cost contracts: Adopting innovative incentive mechanisms to improve the project delivery process. In S. D. Smith, & D. D. Ahiaga-Dagbui (Eds.), Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013 (pp. 759-768). (Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013). Association of Researchers in Construction Management.
Williams, Trefor ; Williams, Michael ; Ryall, Paul. / Target cost contracts : Adopting innovative incentive mechanisms to improve the project delivery process. Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013. editor / S.D. Smith ; D.D. Ahiaga-Dagbui. Association of Researchers in Construction Management, 2013. pp. 759-768 (Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013).
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Williams, T, Williams, M & Ryall, P 2013, Target cost contracts: Adopting innovative incentive mechanisms to improve the project delivery process. in SD Smith & DD Ahiaga-Dagbui (eds), Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013. Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013, Association of Researchers in Construction Management, pp. 759-768, 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013, Reading, United Kingdom, 9/2/13.

Target cost contracts : Adopting innovative incentive mechanisms to improve the project delivery process. / Williams, Trefor; Williams, Michael; Ryall, Paul.

Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013. ed. / S.D. Smith; D.D. Ahiaga-Dagbui. Association of Researchers in Construction Management, 2013. p. 759-768 (Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Williams T, Williams M, Ryall P. Target cost contracts: Adopting innovative incentive mechanisms to improve the project delivery process. In Smith SD, Ahiaga-Dagbui DD, editors, Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013. Association of Researchers in Construction Management. 2013. p. 759-768. (Proceedings 29th Annual Association of Researchers in Construction Management Conference, ARCOM 2013).