Author
Listed:
- Suman Natasa
(University of Maribor, Faculty of Civil Engineering, Transportation Engineering and Architecture, Maribor, Slovenia)
- Tominc Stanko
(Javno podjetje Nigrad, d. o. o., Maribor, Slovenia)
Abstract
The unstable economic conditions that have been in place in the Slovenian and international construction markets reveal the problem of a disproportionate increase in the prices of construction materials and energy products. Such increases will therefore result in higher costs of construction services, which would ultimately affect the total value of the construction project. These events in turn bring uncertainty to the construction project and would negatively impact the business of construction companies and investors. Legal and construction practices have so far developed various ways to regulate contract changes arising due to unforeseen market conditions. The present paper offers a contribution to the contract price change solution during the construction phase. The introduction first presents the measures and guidelines that deal with the differences in contract prices in Slovenia and some other countries. Then, various methods of calculating price differences that have emerged in current Slovenian practice are described. As a result, a proposal for a hybrid method of monthly price difference calculation is presented. The hybrid method represents a balanced solution resulting from the unforeseen increase in construction material prices on the market and is applicable to all construction projects. The three methods, i.e., a calculation method, a method based on the GZS-ZGIGM index, and a hybrid method, are applied to a real example of a public contract. The calculation of the price valorisation, represented as an index of the recognised price increases of contract works, is carried out. The results are compared, and further solutions are proposed.
Suggested Citation
Suman Natasa & Tominc Stanko, 2024.
"Contract price change during the construction phase: unforeseen market conditions,"
Organization, Technology and Management in Construction, Sciendo, vol. 16(1), pages 109-122.
Handle:
RePEc:vrs:otamic:v:16:y:2024:i:1:p:109-122:n:1009
DOI: 10.2478/otmcj-2024-0009
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:otamic:v:16:y:2024:i:1:p:109-122:n:1009. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.