Construction Law Journal 

About: Construction Law Journal is an academic journal. The journal publishes majorly in the area(s): Alternative dispute resolution & Construction law. It has an ISSN identifier of 0963-6706. Over the lifetime, 26 publications have been published receiving 120 citations.

Developing a performance measurement index (PMI) for target cost contracts in construction : a Delphi study

Abstract: There has exhibited an increasing trend of applying cost incentive contracts (including target cost contracts and guaranteed maximum price contracts), which tie the individual objectives of employers and service providers together to achieve more satisfactory project performance in construction. So it would be important to conduct research on the identification of key performance indicators (KPIs) as it can help decision makers to measure and benchmark the performance levels of these projects. Based on four rounds of Delphi questionnaire survey conducted with some relevant experienced industrial practitioners, this research study first identified the most important seven KPIs for evaluating the performance of target cost contracts (TCC) and guaranteed maximum price (GMP) contracts in the construction industry of Hong Kong, and second determined their suitable corresponding weightings by the Delphi expert panel. The top seven KPIs sought include: (1) Mutual trust between project partners; (2) Time performance; (3) Final out-turn cost exceeding the final contract target cost, or guaranteed maximum price value, or not; (4) Magnitude of disputes and conflicts; (5) Client’s satisfaction on quality of completed work; (6) Time required for the settlement of final project account; and (7) Contractor’s involvement in project design. The Kendall’s concordance analysis indicated that there is a statistically significant consensus on the top seven KPIs. Finally, a statistical model for measuring the overall performance levels of TCC/GMP projects in the form of a composite performance measurement index (PMI) was derived to provide a single holistic assessment. Senior management and project managers can thus measure, evaluate and compare the performance levels of their own TCC/GMP projects for benchmarking purposes by applying the consolidated performance measurement model. Further research can be launched to adopting the same research methodology to different geographical locations where TCC/GMP schemes are more prevalent, such as the United Kingdom and Australia, to generate similar indices for international comparison between the East and the West.

Exploring the key risks and risk mitigation measures for guaranteed maximum price and target cost contracts in construction

Abstract: This paper aims to identify the key risk factors and propose some risk mitigation measures for Guaranteed Maximum Price (GMP)/Target Cost Contracts (TCC) construction projects, based on a series of in-depth interviews on the perceptions of relevant experienced industrial practitioners in Hong Kong. The interviewees perceived unforeseen ground conditions, nature of variations and the quality of tender documents to be the three most significant risk factors associated with GMP/TCC, while the effective risk mitigation measures include more thorough site investigations, the implementation of partnering approach and the establishment of an adjudication committee and clear tender briefing and tender interview.

Key Risk Factors and Risk Mitigation Measures for Target Cost Contracts in Construction - A Comparison Between the West and the East

Abstract: This article is an extension of a research article published in the July 2010 issue of the Construction Law Journal in which the findings of seven face-to-face structured interviews, conducted in Hong Kong, on the perceptions of key risk factors and risk mitigation measures for Guaranteed Maximum Price (GMP) contracts and Target Cost Contracts (TCC) were reported. Further to this previous research undertaken in Hong Kong, five similar in-depth structured interviews were conducted in the United Kingdom. The interviewees perceived the change in scope of work, quality and clarity of tender documents, selection of competent subcontractors and unforeseen ground conditions as key risk factors encountered in GMP/TCC construction projects. They also considered a basket of measures including: the adjudication of bids in risk assessment; total reflection on potential risks in tender documents; use of risk registers; and development of a proper risk management process, as being effective in risk mitigation. The UK findings were compared and contrasted with those from Hong Kong. It was found that the key risk factors associated with GMP/TCC contracts between the two jurisdictions are similar by nature in general. However, differences in perceptions on risk mitigation measures are also observed, which may be due to the disparities in the implementation of GMP/TCC methodology between the two regions.

Recommendations on the creation of computer generated exhibits for construction delay claims

Abstract: Representing the cause and effect of construction delays is a challenging task. The use of demonstrative evidence to assist the representation of construction delay claims is likely to increase given the growth of Computer Generated Imagery (CGI) in the courts and the construction industry’s drive towards Building Information Modelling (BIM). This paper identifies how Computer Generated Exhibits (CGE) are currently being used as a form of demonstrative evidence to support construction delay claims through the analysis of two simulations which were created to assist the same claim. The benefits and limitations of the 2D and 4D simulations are discussed and recommendations on the creation of demonstrative evidence for construction delay claim purposes are put forward. The paper recognises the need to test the recommendations and to further investigate how BIM could be used to support delay claims. This forms part of on-going research towards an engineering doctorate.