Application of the Cost Present Value to the Material Price Dicrepancy Adjusting Project
LI Heng-cun, Luo Yu-qiu
Abstract
LI Heng-cun, Luo Yu-qiu
Abstract
At present,the bidding price of large construction projects is calculated based on the code of valuation with bill quantity of construction in our country.The price of the primary materials can be adjusted during the construction of a project based on the market information.The owner doesn't attach enough importance to how to reinforce the management to the adjustment of material price discrepancy.The method of the cost present value is presented as the theory basis of the decision-making in the management to the adjustment of material price discrepancy.A project instance results show the method proposed by the paper is reasonable and effective.
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At present,the bidding price of large construction projects is calculated based on the code of valuation with bill quantity of construction in our country.The price of the primary materials can be adjusted during the construction of a project based on the market information.The owner doesn't attach enough importance to how to reinforce the management to the adjustment of material price discrepancy.The method of the cost present value is presented as the theory basis of the decision-making in the management to the adjustment of material price discrepancy.A project instance results show the method proposed by the paper is reasonable and effective.
Key concepts: Bidding, Valuation (finance), Value (mathematics), Market price, Economics, Microeconomics, Construction contract, Market value