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Best Practices For Dealing With Price Volatility In Utah Commercial Construction, Justin Earl Weidman

Theses and Dissertations

In the commercial construction industry, the problem of price volatility as it pertains to materials and labor is a consistent problem. The changing instability of market conditions presents a challenge for construction companies to accurately estimate and complete projects within budget. This volatility can lead to higher costs and more risk to suppliers, contractors, and owners which can cause financial distress for all parties involved in the construction process. As lump sum contracts are typically being used on many projects, the owners seem to have the upper hand and are forcing contractors to honor lump sum contracts even when prices …