Most contracts provide for price adjustment mechanisms in view of open market escalation/de-escalation of prices over a given period of time. They are mostly directed at certain specified construction inputs such as certain material, hire charges of plants and wages. This mechanism is intended to safeguard both the Employer and Contractor from risks involved with fluctuating prices over time.
To overcome the inefficiencies encountered in traditional method of calculating price fluctuations, various formula-based methods are adopted around the world as a speedy method to ascertain the amounts to be adjusted due to change of prices. In Sri Lanka we generally adopt CIDA (formerly ICTAD) formula method to calculate and provide monetary redress for fluctuated prices of material, labour and plant. It was introduced in January 1993 and had not been developed or modified since inception.
Dealing with rapid fluctuations in prices, almost all the time in an upwardly movement, is now becoming a challenge to the construction industry stakeholders. Effects of current pandemic situation along with associated problems emanated from it and other economic issues are exposing many shortcomings of those formulae and indices. It is opined that currently adopted formula method does not sufficiently compensate the actual fluctuations in the market or mitigate the pricing risks. What are the various complications generated by the prevailing
economic and pandemic complexities? How do we address this necessary evil of fluctuating prices while ensuring viability of projects to all stakeholders including clients and contractors? IQSSL presents this Round Table platform for you to share and gain knowledge and professional experiences to formulate realistic and appropriate solutions.
Date: Thursday, 28th October 2021
Time: 6:00 p.m. to 8:00 p.m.
Location: Through Zoom meeting app (shall be installed prior to session)
Please register by enclosing the completed Registration Form (link given above) providing relevant details. Registration will be on first come first served basis as only a limited number of attendees will be considered.