Target costing in construction: perceptions from Quantity Syrveyors

Abstract

The purpose of this research is to explore target costing (TC) principles in relation to its use and adoption, with the intention to reveal the potential for positive impact on project performance in South Africa. The field work used interviews about the principles of target costing to uncover the nuances of cost management practices in the construction contracting sector. Interviews were conducted among practising quantity surveyors (QSs) in Bloemfontein and Buffalo City of South Africa. The QSs opine that when TC is utilised, construction projects can be managed efficiently in terms of budget and expenditure and the design of the project with its related change orders can be minimised. However, the QSs also perceived that implementation of the principles TC could be difficult due to lack of extensive knowledge of its implementation. The study is relevant because the new knowledge will help to develop strategies for professional development and update the education curriculum to train the QSs for future challenges.