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.
