The Price Adjustment of Construction Contract
Date Issued
2009
Date
2009
Author(s)
Liu, Chih-Fang
Abstract
Construction projects are characterized by long duration, being influenced greatly by weather and site conditions, involving numerous professionals and difficult to estimate the total cost. Hence participators of a construction project are often unable to foresee the obstacles confronted during the whole process. Therefore, alternating a construction contract is not unusual and will create an issue whether the contract price should be adjusted accordingly.o a contractor or a consultant in a construction project, alternation of the contract may increase the cost of performance and the difference should be claimed. To the employer, the price adjustment makes impact on budget control. It is obvious that the price adjustment issue is critical in the field of construction law. However, most contracts in Taiwan do not provide any method of price adjustment, hence creating many arguments. Thus, in this thesis, three kinds of circumstances which often trigger the price adjustment arguments are chosen to be researched whether and how the price should be adjusted in these individual circumstances.First, this thesis will introduce the kinds and natures of construction contracts, analyzing the risks borne by the participants, sorting the ways how professionals allocate the risks, in order to find out the logics of pricing methods which reflect risk allocation of these contract types. ext, this thesis will analyze price adjustment methods provided by various forms of contracts on extension of time, escalation and variation. The decisions of the courts will also be discussed. Finally, this thesis will conclude and provide suggestions on whether and how to adjust price in these circumstances.
Subjects
construction contract
price adjustment
escalation
variation
extension of time
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