Methods of Adjustments the Cost in Constructions

Abstract

The aim of this article is to show the impact of adjustments in construction projects. The methodology and impact of costs in construction are analyzed by applying the formula for calculating the cost of price adjustments based on inflation. The cost of a project is defined by its direct and indirect costs, but in projects carried out by the state, there are adjustments to the cost. The adjustment cost is intended to take over a price increase due to changes that are not related to the project and are related to the market economy of the construction industry.

Keywords

• public construction projects
• material cost
• forecasting
• cost inflation model; cost increase