Construction Contracts Price Rules under the New Civil Code
Construction Contracts Price Rules under the New Civil Code

Summary/Abstract: The construction industry plays a key role in the creation of the wealth of our nation and it forms the backbone of most industries in Romania. Price determination for construction projects with minimum error at the conceptual stage of project development is crucial for planning, but cost escalation, schedule overruns and quality shortfalls on construction projects often offset the intended contribution of the industry to the economy.The aim of the study reported in this paper was to highlight the price determination rules under the Romanian Civil Code and the major causes of cost escalation, schedule overruns and quality shortfalls in the context of the Romanian construction industry.The results of our study show that the most significant causes for cost escalation were the fluctuation of material price and variations (change orders) but consultants, clients and contractors also identified insufficient initial analysis of costs as a frequent and severe factor that caused cost escalation. Lack of qualified personnel and financial difficulties on the part of the contractors were ranked as the most frequent and severe causes of schedule overruns and poor financial management was established to be the most common factor for quality shortfalls on construction projects. Performant project management practices and training have been recommended for construction projects to be executed successfully in Romania.

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