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Abstract Interorganizational cost management has been pointed out as a way for managing costs along supply chain. In construction industry, with about 80-90% of any project’s execution, hence its costs, are at the hands of subcontractors; it is normal for the main contractor seeking to improve bid price competitiveness to lean on interorganizational cost management for achieving this goal. The main focus of this research is to determine the relevant tools to be used under the two stages of design-build auction The research concluded that chained target costing would be very effective at the first stage at which design is set, while both interorganizational kaizen costing and value chain analysis would help at the second stage once design is set. Yet, for these tools to work efficiently, cost estimation should be extended along supply chain as what is not seen, cannot be managed and what cannot be managed, cannot be controlled and this can be achieved, as proposed, through using cost tables for extending preliminary cost estimation used at the first stage, which also would help providing the target price to be used for activating chained target costing while activity-based costing can be used at the second stage for extending detailed cost estimation |