A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Risk Element in Profit Planning under Inflation
The paper deals with the influence of inflation on profit from construction ventures, and on contractors price determination. First the effect of price escalation on profit is examined under two types of contracts: a fixed price contract and a contract with a compensation clause. Then, the influence of inflation risk on construction price of contractors with different attitudes towards risk taking is explored. The risk is represented by a range of possible inflation rates with different statistical distributions. Finally, the influence of inflation on return from long range investment in equipment and facilities is examined.
Risk Element in Profit Planning under Inflation
The paper deals with the influence of inflation on profit from construction ventures, and on contractors price determination. First the effect of price escalation on profit is examined under two types of contracts: a fixed price contract and a contract with a compensation clause. Then, the influence of inflation risk on construction price of contractors with different attitudes towards risk taking is explored. The risk is represented by a range of possible inflation rates with different statistical distributions. Finally, the influence of inflation on return from long range investment in equipment and facilities is examined.
Risk Element in Profit Planning under Inflation
Warszawski, A. (author)
Journal of the Construction Division ; 108 ; 624-638
2021-01-01
151982-01-01 pages
Article (Journal)
Electronic Resource
Unknown
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