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Adjusting Construction Contract Prices for Price Fluctuations: Item-Based and Index-Based Adjustment Rates, Requirements and the Adjustment Base Date
※ You can preview page 1 as is. Buy it to download the complete original file right away. The file itself is written in Korean.
■ Adjusting Construction Contract Prices for Price Fluctuations: Item-Based and Index-Based Adjustment Rates, Requirements and the Adjustment Base Date — Overview
Material summarizing how contract prices are adjusted for price fluctuations in construction works carried out over long periods. It explains that price fluctuations during the construction period increase or decrease construction costs, and that irrational pricing between the contracting parties can lead to substandard construction, so clear adjustment standards are needed. It summarizes how to calculate the item-based adjustment rate, which calculates the rise or fall of every cost item individually, and the index-based adjustment rate, which applies indices by cost-item group and adjusts the price when it changes by 3% or more; it also covers applying the adjustment to the portion of work to be performed after the adjustment base date, deducting advance payments, and the period and fluctuation requirements of Article 64 of the Enforcement Decree of the Act on Contracts to Which the State Is a Party, and presents the problems of both adjustment methods and the need for improvement.
■ Adjusting Construction Contract Prices for Price Fluctuations: Item-Based and Index-Based Adjustment Rates, Requirements and the Adjustment Base Date — Excerpt from the original document (in Korean)
물가변동으로 인한 조정 시 ‘조정 요건’은 <국가를 당사자로 하는 계약에 관한 법률> 시행령 제64조 1항에 명시되어 있다. 기간 요건은 계약 체결 후 일반적으로 90일 이상 경과하여야 하는데, 계약일은 제1차 계약의 체결일을 의미하며 이 날을 기준으로 90일 이상 경과해야 계약금액의 조정 대상으로 인정된다. 기간 요건이 규정되어 있는 이유는 계약의 당사자가 계약을 체결하면서 이후 물가변동을 어느 정도 예측 가능할 수 있도록 하여 물가변동을 반영하기 위함이며, 이 때 초일 불산입을 원칙으로 계약 체결일 익일부터 기간이 계산된다.
장기 공사계약의 경우 일반적으로 당해년도 예산의 범위에서 분할계약의 형태로 체결되기 때문에 기간 요건의 기산일은 1차 계약 체결일이 된다. 따라서 2차 이후의 조정이 필요한 경우에는 직전의 조정기준일부터 다시 90일이 경과하고 3% 이상의 요건이 동시 충족되어야 계약금액의 재조정이 가능하다.
물가변동의 ‘조정기준일’은 앞서 언급했듯이 계약 체결 후 또는 직전 조정일로부터 90일 이상경과해야 비로소 가능해진다. 또한 여기에는 기간 요건 외에도 등락요건이 필요한 데, 90일 이상 경과했다고 하더라도 계약금액이 3%이상 증감하지 않았다면 조정이 불가능하기 때문이다. 계약금액이란 ‘물가변동 적용대가’를 의미하기 때문에, 이는 조정 기준일 이전에 완료 되어야 할 부분의 계약금액을 제외한 잔여 계약금액을 의미한다.
따라서 물가변동으로 인한 계약금액이 증액 또는 감액된 경우 그 변동이 3% 이상 나타난다면 조정의 대상으로 볼 수 있다. 따라서 기간과 등락 요건을 동시 충족하는 최초의 시점이 조정기준일이 된다.
■ Adjusting Construction Contract Prices for Price Fluctuations: Item-Based and Index-Based Adjustment Rates, Requirements and the Adjustment Base Date — Contents and key concepts
Who bears the cost of materials that rose during construction?
If price fluctuations are not reflected, both contracting parties suffer losses and it can lead to substandard construction. This material summarizes the calculation methods and requirements for contract price adjustment, and the problems with the adjustment methods.
Contents
- Construction works and the risk of price fluctuations
- Why clear adjustment standards are needed
- How the item-based adjustment rate is calculated
- How the index-based adjustment rate is calculated
- Adjustment requirements and the adjustment base date under the Enforcement Decree of the State Contracts Act
- Problems with both adjustment methods and directions for improvement
Contract price adjustment methods
| Method | Content | Problems |
|---|---|---|
| Item-based adjustment rate | Calculates the rise or fall of every cost item individually | Calculation is complex and consumes time and money |
| Index-based adjustment rate | Applies indices by cost-item group; adjusts when the change is 3% or more | Indices based on general construction items create unit-price gaps between trades |
Adjusting construction contract prices for price fluctuations, seen through item-based and index-based rates
- It summarizes the legal requirements and calculation methods for contract price adjustment together.
- It is a good reference for assignments on construction management, building construction and construction contracts.
- It compares the pros and cons of the two adjustment methods, which also helps in understanding practice.
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