Scholarly record
PRICE AS THE BASIC VALUE OF PROJECT MANAGEMENT OF BUILDING GREEN CONSTRUCTIONS
Abstract
The basic contractual instrument among all involved parties of construction projects in the Czech Republic is a contract for work according to the Civil Code of the Collection of Law of the Czech Republic. The contract is further supplemented by provisions based on long-term business experience and needs of contractual partners. An essential part is the type of price, its amount and the method of determining or adjusting the price. For green constructions in general and green buildings in particular it is customary that the price is higher than the price of non-green buildings. This is due to the use of more expensive environmental-friendly materials, environmental-friendly processes and more efficient technologies with minimal environmental impacts. The immediate higher purchase price then results in lower operating costs over many upcoming years. Realization cost is the decisive factor for many investors in the Czech Republic and unless they are forced by legislation or supported by subsidy programmes, they choose lower price, which is a price of non-green building. However, realization price of a new building may be reduced using another procedure, for example by using floating price in the contract for work. The tools for adjustment of fixed price to floating price due to the inflation are the price indices. The procedure for adjusting the initial price from the budget is described in the FIDIC contractual terms and conditions. The most suitable source of data in the Czech Republic is the state price statistics carried out by the Czech Statistical Office. In the area of industrial production, which includes materials and products used in construction, price development is monitored on the monthly basis. Price monitoring in the construction sector is carried out quarterly. Monthly data on wage development, energy, transport and selected business service prices are also available. Using a floating price in a contract for work reduces contractor's risk surcharges due to unknown future economic impacts. Investor can then invest saved money back into the newly constructed building to improve its ecological standards.
Publication Impact Profile
Publication details
References10
Consumption of selected fuels and electricity by activity in 2014-2016. Prague: Czech Statistical Office. 2017. Available at: http://apl.czso.cz/pll/eutab/html.h. (accessed 2017 October 14).
Fuel and energy consumption - 2016. Prague: Czech Statistical Office. 2017. Available at: https://www.czso.cz/csu/czso/spotreba-paliv-a-energie-2016 (accessed 2017 October 15).
Safarik M., Cejka M., Mazacek J., Potential of energy savings in buildings in the Czech Republic. Prague: PORSENNA o.p.s., 2013. Available at: http://www.porsennastavebni.cz/. (accessed 2017 October 15).
Waste generation in 2015. Prague: Czech Statistical Office. 2016. Available at: https://www.czso.cz/csu/czso/produkce-vyuziti-a-odstraneni-odpadu-2015 (accessed 2017 October 14).
National Energy Efficiency Action Plan of the Czech Republic. Prague: Ministry of Industry and Trade, 2016. Available at: https://www.mpo.cz/dokument150542.html. (accessed 2017-10-15).
Vahalova, T., Return time for investment in energy adjustments. Brno, 2011. Master’s thesis. Brno University of Technology, Faculty of Civil Engineering, Institute of Building Economics and Management. Supervisor Krejza Z.
Collection of Law of the Czech Republic. No. 33. 2012. 89. Civil Code. pp. 1026-1368. ISSN 1211-1244.
Collection of Law of the Czech Republic. No. 86. 1990. 526. Pricing Act. pp. 1946-1951. ISSN 1211-1244.
Statistical Codes TSKPstat. Prague: Czech Statistical Office. 2017. Available at: https://www.czso.cz/csu/czso/statisticke_ciselniky_tskpstat. (accessed 2017-10-14).
Classification of Types of Constructions (CZ-CC). Prague: Czech Statistical Office. 2017. Available at: https://www.czso.cz/csu/czso/klasifikace_stavebnich_del_-cz_cc-. (accessed 2017-10-14).
View or Download full articleAccess options
SWS access login
Login as SWS Scientific CommitteeLogin as SWS Scientific PartnerLogin as SWS AuthorAuthors and approved SWS contributors will read and export their own linked papers after identity matching by SWS profile, email and SGEM GlobalID.
For librarian assistance: [email protected]
Purchase Instant Access
- Article can be downloaded after successful payment.
- Article may be used according to SWS library access terms.
- Article cannot be redistributed.
