Guaranteed maximum price (GMP) contracting in the South Australian construction industry
Date
2010
Authors
Perkin, T.S.
Ma, Y.F.T.
Editors
Wang, W.
Yaowu, Y.
Yaowu, Y.
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Conference paper
Citation
2010 international conference on constitution & real estate management, 2010 / Wang, W., Yaowu, Y. (ed./s), pp.178-181
Statement of Responsibility
Conference Name
ICCREM 2010 International Conference on Constitution & Real Estate Management (1 Dec 2010 - 3 Dec 2010 : Brisbane, Australia)
Abstract
The South Australian construction industry is experiencing high demand for new construction and at the same time increasing project complexities, constraints in schedules and limited budgets. These pressures are driving the need for changes in contracting procedures. The GMP approach to contracting has recently become more popular; however there is a clear lack of understanding and scarcity of local research conducted on the performance of this procurement strategy. This paper aims to evaluate the GMP contracting in South Australia in the context of its overall framework and features for all industry stakeholders.This study identifies and describes the perceived benefits, Key Risk Factors (KRFs) and the difficulties associated with GMP projects. Two case studies were collected through face-to-face interviews which are used to illustrate the opinions of project stakeholders on the reasons of adopting GMP and the inherent risk factors during the course of the project period. These findings provide a valuable understanding of current GMP practices in the construction industry and will assist stakeholders to identify the best practice approaches and the potential pitfalls of this procurement method.