Impact of Using Price Fluctuation Related Conditions on Construction Projects

The inherent nature of construction projects is long duration and high cost. Extended project leads to escalation If the too long, initial estimation may not be sufficient recover actual cost contract. To address this problem, Construction Industry Development Authority (CIDA) has introduced a price adjustment method called “ICTAD formula for adjustments contract due fluctuation in prices”. Contract documents related also provide some provisions issues with material fluctuations. This study investigated practices contractors minimize effect variation support clauses impact variation. A questionnaire survey was conducted among professionals represent CS2 C5 grade companies registered at CIDA. consisted using different aspects. Collected responses were converted quantitative value relative importance index (RII). In addition, SPSS software used critical review responses. results revealed that mostly agree increased input prices. Further, are evident helps fair risk sharing between contractor client.