Ott, Saskia

Diploma Thesis:
1924

Topic:
Fair construction prices - taking into account the high risk of price changes

Editor:
Saskia Ott

University Professor Responsible:
Univ.-Prof. Dr.-Ing. Dipl.-Wirt.-Ing. Katharina Kleinschrot

Supervisor:
University Supervisor: Dipl.-Ing. Natalia Bienkowski, LL.B.

Editing Period:
12/2022 until 10/2023

Abstract:
This paper deals with price stability in construction contracts and the protection of contractors and clients in the construction industry. Risk surcharges serve as a financial reserve against price increases and offer room for negotiation. Price escalation clauses allow flexible adjustment of contract prices to market fluctuations, reduce the risk of cost overruns and simplify contract adjustments. The choice between risk surcharges and price escalation clauses depends on individual preferences, project requirements and contractual agreements. Transparent contracts with clear risk allocation provisions are crucial. Recommendations for future construction contracts include a comprehensive risk assessment, precise risk premiums and clearly defined price escalation clauses. The aim is to promote the understanding of price escalation clauses and to suggest a possible formulation of price escalation clauses. The flexibility of the contracting parties to react appropriately to unexpected developments is crucial to the success of the project. Companies should always consult experienced lawyers and construction law experts in order to draft contracts with legal certainty.