Abstract
The purpose of this study is to suggest policies to improve the price escalation system in a construction contract through, a Po licy Delphi technique. The Delphi, including two times questionnaires and a group discussion, was conducted by joining 14 experts. We also examined the escalation provisions of various countries. Results of the Delphi showed that the minimum fluctuation rate fo r price escalation was desirable at a level of 3%. To compute, the fluctuatio rate, calculating the price fluctuation of overalhrticles, was more desirable than using price indices. A bidding date was more reasonable as the initial date of change in price. Losses caus ed by price change should be shared between contractor and owner; therefore a deduction rate should be introduced in contract price escalation. Meanwhile, overhead and profit should be adjusted in proportion to the fluctuation rate; but advance payment or the delayed construction amount should be deducted from the adjusted amount.
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Choi, M., Kim, J. & Kim, M. A study on the price escalation system in a construction contract. KSCE J Civ Eng 10, 227–232 (2006). https://doi.org/10.1007/BF02830776
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DOI: https://doi.org/10.1007/BF02830776