Publication result detail

Financial Risk Hedging Instruments for Public Work Contracts

KORYTÁROVÁ, J.; PAPEŽÍKOVÁ, P.; ŠPIROCH, M.; ŠTAFFA, J.

Original Title

Financial Risk Hedging Instruments for Public Work Contracts

English Title

Financial Risk Hedging Instruments for Public Work Contracts

Type

Peer-reviewed article not indexed in WoS or Scopus

Original Abstract

Public work contracts create a substantial share of building industry performance and consume a large amount of public financial resources. Construction process should be efficient without additional costs and overrun time schedules. A very important point in this process is represented by hedging public contracts against potential risk. There are many instruments used in the Czech Republic - insurance construction contracts, contractual penalty and retention or a bank guarantee to name several of them. But not all of them are as effective as the contractors need them to be. The main aim of this paper is to find an effective set of hedging instruments in contracts for work to sufficiently fulfil their function and protect the goals of both the investor and the contractor impending business risks. Information on hedging instruments has been studied on the sample of 246 public works contracts of sewage facilities and equipment.

English abstract

Public work contracts create a substantial share of building industry performance and consume a large amount of public financial resources. Construction process should be efficient without additional costs and overrun time schedules. A very important point in this process is represented by hedging public contracts against potential risk. There are many instruments used in the Czech Republic - insurance construction contracts, contractual penalty and retention or a bank guarantee to name several of them. But not all of them are as effective as the contractors need them to be. The main aim of this paper is to find an effective set of hedging instruments in contracts for work to sufficiently fulfil their function and protect the goals of both the investor and the contractor impending business risks. Information on hedging instruments has been studied on the sample of 246 public works contracts of sewage facilities and equipment.

Keywords

Public works contracts; Hedging instruments; Estimated value; Tender price; Contract price

Key words in English

Public works contracts; Hedging instruments; Estimated value; Tender price; Contract price

Authors

KORYTÁROVÁ, J.; PAPEŽÍKOVÁ, P.; ŠPIROCH, M.; ŠTAFFA, J.

RIV year

2016

Released

15.12.2015

Publisher

The University of Zagreb, Faculty of Civil Engineering

Location

Zagreb, Chorvatsko

ISBN

1847-6228

Periodical

Organization Technology and Management in Construction

Number

3

State

Republic of Croatia

Pages from

1352

Pages to

1357

Pages count

6

BibTex

@article{BUT122220,
  author="Jana {Korytárová} and Petra {Pískatá} and Michal {Špiroch} and Jan {Štaffa}",
  title="Financial Risk Hedging Instruments for Public Work Contracts
",
  journal="Organization Technology and Management in Construction",
  year="2015",
  number="3",
  pages="1352--1357",
  issn="1847-5450"
}