Browsing by Author "Abebe Jima"
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Item Study on the Practices of Price Adjustment in Ethiopian Building Construction(Addis Ababa University, 2019-06) Abebe Jima; Abebe Dinku (Prof.)Price adjustment refers to a provision in a contract which calls for an adjustment in price in the event of an increase or decrease in certain costs. Price adjustment clauses are becoming increasingly common in building construction contracts as a means to cover unexpected costs resulting from fluctuations in the prices for raw materials, fuel and labor during the course of the construction project. However, Lack of properly designed standard procedures for price adjustments and lack of clear understanding on price adjustment clauses and formula to implement the price adjustments when necessary has been a problem to the construction industry and the time associated with cost of construction could not be maintained and managed in a proper way for the successful accomplishment of projects. Therefore, this research paper aims in examining the price adjustment practices being currently implemented in the Ethiopian Building Industry, knowing the construction industry has the big share of the country’s budget every physical year, with reference to international good practices and attempts to develop a draft standard procedure of Price Adjustment formulae.