From the Editor
Authors: C. Bredillet
Year: 2012

In this issue of the Journal, the articles considered reflect the depth of research and practice that is unique to project management discipline. The range of topics addressed includes managing project contracts (Chan et al., “A Comparative Study of the Benefits of Applying Target Cost Contracts Between South Australia and Hong Kong”), managing project complexity (Chronéer and Bergquist, “Managerial Complexity in Process Industrial R&D Projects: A Swedish Study”), identifying early warning signs in complex projects (Williams et al., “Identifying and Acting on Early Warning Signs in Complex Projects”), project risk management (Krane, Olsson, and Rolstadås, “How Project Manager–Project Owner Interaction Can Work Within and Influence Project Risk Management”), exploring decisions regarding outsourcing and alignment of the project management office (Martins and Martins, “Outsourcing Operations in Project Management Offices: The Reality of Brazilian Companies”), and project management practices at strategic and tactical levels of the organization leading to sustainable development (Herazo, Lizarralde, and Paquin, “Sustainable Development in the Building Sector: A Canadian Case Study on the Alignment of Strategic and Tactical Management”). Chan et al. attempt to understand the perceptions towards guaranteed maximum price and target cost contract (GMP/TCC) contract types. These perceptions are juxtaposed in two cultures—Hong Kong and Australia. Various aspects of GMP/TCC contracts such as steps in the prequalification process, submission and evaluation of bids, and their benefits are explained to clarify the concepts. The study is set in the construction industry. A comprehensive literature review on the GMP/TCC contracts was performed, which led to the development of a research framework. Structured interviews were conducted with project practitioners from Hong Kong and Australia. This was followed by a survey of 90 project professionals from Hong Kong and Australia to understand the perceived benefits of using GMP/TCC contracts. The Mann-Whitney U test was used for analysis. It was found that GMP/TCC contracts offered incentives to both the contractor and the employer, unlike the traditional contracts where incentives are transferred only to the contractor. On the other hand, various benefits such as faster project delivery, better project control, better change management, and managing project scope were made possible because the owner and the contractor are more closely involved in the post-contract award stage. However, monetary incentives, better value for money, and successful project closure were the benefits perceived more strongly by the project professionals in Hong Kong as compared with their Australian counterparts. The second article in this issue by Chronéer and Bergquist presents a case study on the competences that are required for a project manager in order to manage project complexity in research and development projects in the process industry. Based on extant literature, two aspects of projects—product development and process development—are considered where the need to integrate these two aspects is advocated for managing project complexity. The authors contacted 50 companies from the Swedish process industry, and structured interviews with their project personnel were conducted. The respondents were from diverse industries such as steel, paper, chemical, mining, and rubber. The project manager’s competences were identified in these companies and were related to project content, project management, and integration of process and product development. A follow-up analysis of 18 companies was conducted for further insights. The study concludes that project managers need to maintain an internal focus (directed at the process), and an external focus (developing product for the client). This study also establishes a case for the integration of process development with product development whereby improving the process by reducing the production costs, quality compliance, and increased yield leads to the development of successful products. In order to achieve this, it is suggested that project managers work closely with the suppliers (for the process development aspect) and the customer (for the product development aspects). The third article in the issue by Williams et al. also studies project complexity. This article proposes project management practices to identify early warning signs of complex projects. The article presents different types of project assessments (such as project health checks and project audits) done during the project’s life cycle to set the context. By understanding the purpose of these From the Editor Christophe N. Bredillet, PhD, DSc, Queensland University of Technology, Brisbane, Australia