Evaluation of Price Fluctuation of Determining Materials for Total Construction Cost

Abstract

The preparation of many investment projects began before the pandemic and is now facing a changed situation that will affect the entire project. One of the significant factors influencing construction projects is the price growth and availability of construction materials. The effects of price changes will take shape during the construction process in the supplier's relations and will affect the project's results from the point of view of suppliers and investors. The effect of rising prices of building materials on the total construction costs for the design of an apartment building is evaluated, and the groups of materials with the largest share of the total cost are identified. Part of the analysis is the assessment of groups of materials with the highest fluctuations in prices for the period, called determined materials. For this group is appraised share in the total construction costs, and the possible effects of price increases on project implementation are discussed.