FINANCIAL FORECASTS FOR WORKS CONTRACTS. A CONTENT ANALYSIS OF ROMANIAN RULES ON VALUE ADJUSTMENTS
Unpredictable events, such as: international market prices evolution of construction materials, fuel and energy, changing rules regarding labour, wages and mobility of goods may lead to cost escalation during works contracts implementation. A proper value adjustment formula may contribute on mana...
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| Main Author: | |
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| Format: | Article |
| Language: | deu |
| Published: |
University of Oradea
2023-07-01
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| Series: | Annals of the University of Oradea: Economic Science |
| Subjects: | |
| Online Access: | https://anale.steconomiceuoradea.ro/en/wp-content/uploads/2024/02/AUOES.July_.202325.pdf |
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| Summary: | Unpredictable events, such as: international market prices evolution of
construction materials, fuel and energy, changing rules regarding labour, wages and
mobility of goods may lead to cost escalation during works contracts implementation. A
proper value adjustment formula may contribute on managing emerging financial risk.
Generally, those formulas are subject to national rules, but only for public investments, of
great value and long duration, the rest remaining to the contracting authorities’ decisions.
Looking for the right formula in those cases of non-regulated situations induces stress for
personnel, and also the risk of affecting investments performance through wrong decision.
The paper’s objectives are both qualitative and quantitative, searching, through a relevant
Romanian legal frame content analysis for answers at two research questions: how a works
contract value could be adjusted, and how can be choose the most appropriate one among
different value adjustment formulas? A selection of contemporary relevant national rules
and regulations on value adjustment formulas was studied to answer at these questions,
revealing specific approaches on treating adjustments. Results of this content analysis refers
to the presenting and discussing various models of value adjustment approach in Romanian
works contracts. Paper’s conclusions could be used by researchers in further investigation
of relationship between various value adjustment formulas and investment's performance.
Conclusions could be also useful for practitioners, in selecting the appropriate value
adjustment formula in case of non-regulated such as relatively small value and short
duration works contracts. As a personal contribution, a model on selecting a value
adjustment formula is here presented. |
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| ISSN: | 1222-569X 1582-5450 |