Amendment of
Amendment of Saudi Arabia Public Works Contract from
Fixed-Price to Price Adjustment Contract
Eissa
Asiri 1, Ahmad Al-Dokhmasey2 and Moheeb
El-Said3
1Ministry of Municipal and Rural Affairs, Saudi Arabia
2Procurement Senior of Ezz Flat Steel Company, Egypt
3Structural Engineering Dept., Faculty of Engineering,
Cairo University, Giza, Egypt.
Abstract: The price adjustment contract is engineering
contract that includes articles allow the adjustment of the contract price
(either by increasing or decreasing) according to the terms agreed between the
contract’s parties. This contract type includes mathematical equation which
called Contract Price Adjustment (CPA) that grants enough flexibility to adjust
the contract’s price in order to eliminate the risk of price fluctuation of
contract’s components. Federation International Des Ingeniers – Consells (FIDIC)
presented a formula for price adjustment in which, both parties should agree on
the variables of such formula and the limitations of applying it as well. In
this paper, a questionnaire survey and several interviews with experts in the
field of high way and road way construction projects are conducted in order to
extract the data needed to formulate the price adjustment that could be applied
in the contracts of such type of projects. The stated formula is presented in
order to be utilized in amending the standard Saudi Arabia public works
contract (which is considered as a fixed-price contract) to be more flexible in
dealing with the variations in material prices faced by the contractors during
the execution of the contract works.
[Eissa
Asiri, Ahmad Al-Dokhmasey and Moheeb El-Said. Amendment of Saudi Arabia
Public Works Contract from Fixed-Price to Price Adjustment Contract. J
Am Sci 2013;9(6):338-346]. (ISSN: 1545-1003).http://www.jofamericanscience.org. 39
Keywords: Public Works Contract, Price Adjustment
Contract, Project
items, The price adjustment
formula. Full Text 39
