(2023), 'The potential of new models of construction procurement to counter cost overruns in construction projects: an exploratory study from a contractors’ perspective', Journal of Financial Management of Property and Construction, Vol. Sheamar, S., Wedawatta, G., Tennakoon, M., Palliyaguru, R. In the first stage, selected contractors (prequalified) will be asked to bid based on approximate quantities and conceptual (preliminary.
For an industry where collaboration is accepted with reservations, this case study demonstrates how novel collaborative strategies such as open book costing, project bank accounts and shared pain and gain mechanisms can be implemented as part of the procurement strategy and how such strategies can contribute towards minimising the cost escalation inherent in construction projects. The two-stage selective tendering process is used when the client needs additional support at the design stage or the client wants to start the project with conceptual drawings. The cost of the work is likely to be higher than the cost of a competitive tender. During the design stage, the contractor might offer his knowledge. It shortens the time required to select a contractor for any tendering work. Addressing the dearth of research concerning the use of NMCP within the industry, this study makes a niche contribution to the body of knowledge on construction cost management by illustrating the potential offered by these new procurement methods for addressing cost escalation. Work on the job site will begin as soon as possible.
