Innovative Price Indexing for Managing Road and Bridge Projects: Mitigating Cost Overruns

Mariusz Urbański, Katarzyna Grondys (), Marcin Świtała and Wiesław Liszewski
Additional contact information
Mariusz Urbański: Road and Bridge Research Institute
Katarzyna Grondys: Czestochowa University of Technology
Marcin Świtała: Road and Bridge Research Institute
Wiesław Liszewski: Czestochowa University of Technology

A chapter in Corporate Practices: Policies, Methodologies, and Insights in Organizational Management, 2024, pp 451-465 from Springer

Abstract: Abstract Outlays on infrastructure projects account for a significant portion of the national economy's expenditures. The ongoing tender procedures and rising prices of services and materials in the construction industry mean that the budget for road infrastructure development is subject to dynamic changes. The result is an underestimation of expenses and slowing down or stopping road works. This entails negative consequences for both the contractor and the investor. The paper aimed to present an experimental method based on measures of the dynamics of road and bridge works prices, which will reduce the risk of exceeding construction investment costs. An example of a national road investment was selected for the study, based on which methods of estimating the value of valorization of the price of a road investment chosen based on the price indices of construction works of road and bridge structures over the past five years were presented. Based on the application of the innovative adjustment index, the permissible limits of valorization were indicated, which form the basis for the renegotiation of contract prices within the framework of the studied investment between the investor and the construction contractor. The results of the study could be used by the public sector to assess the effectiveness of procurement in the area of infrastructural projects and to improve tender procedures.

Keywords: Changes in works prices; Road and bridge facilities; Adjustment Index; Valorization (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-97-0996-0_26

Ordering information: This item can be ordered from
http://www.springer.com/9789819709960

DOI: 10.1007/978-981-97-0996-0_26

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().