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Best Practices For Dealing With Price Volatility In Utah's Residential Construction Market, James Packer Smith
Best Practices For Dealing With Price Volatility In Utah's Residential Construction Market, James Packer Smith
Theses and Dissertations
Price volatility is a consistent problem that affects all of the parties involved in the residential construction industry. The myriad factors that can have an impact on construction costs are such that it is extremely hard to anticipate upcoming changes in a timely and accurate way. When prices fluctuate during the course of a project, estimates become erroneous and completion of projects within expected budgets becomes difficult. Increasing prices typically leave contractors with the majority of the risk burden due to the enforceability of contracts that are likely to have been executed months prior. The risk associated with the owner's …
Best Practices For Dealing With Price Volatility In Utah Commercial Construction, Justin Earl Weidman
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 …