| Title |
A Basic Study on Effective Adjustment Method for Construction Escalation/De-Escalation Price |
| Authors |
Sung, Ju-yong ; Kim, Dong-jin ; Lee, Min-jae |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2019.20.3.003 |
| Keywords |
Contract Amount Adjustment System ; Escalation ; Item Adjustment Method ; Index Adjustment Method |
| Abstract |
The construction of a facility is an act whereby infrastructure such as roads and railways and other facilities such as housing and office spaces are constructed, and due to the characteristics of the relevant industry where such construction is carried out in a custom order method, it requires a long period of time mostly. While the construction is carried out over a long period of time, fluctuations in the price of raw materials required for the construction occur. Therefore, the cost of the construction also fluctuates inevitably. The fluctuation of the construction cost meshes closely with the profit of a constructor and the efficiency of government spending. Therefore, it is necessary to maintain the construction cost at a reasonable level by adjusting the construction cost rationally in order to secure the required construction quality and spend the budget efficiently. The buffer system for solving such problem is the contract amount adjustment system by fluctuations in prices (Escalation/De-Escalation). In this study, the method combining the escalation method based on the item adjustment method was suggested for an efficient contract amount adjustment method. In addition, it is proposed that there be an investigation and codification of matters not applied to government acts and regulations on contracts related to the adjustment off luctuations in prices legally. |