Price certainty in the construction industry - Revision history

Designing Buildings at 08:41, 31 December 2020

2020-12-31T08:41:15Z

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	* Whole life cost.		* Whole life cost.

−	[[Category:Theory]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Theory]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Designing Buildings at 16:01, 24 January 2020

2020-01-24T16:01:19Z

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	On the supply side, price certainty may contribute to cost certainty in that as a result of the pre-agreement, the supplier receives a fair price for the product or service which covers their production and/or supply costs and leaves them with a profit.		On the supply side, price certainty may contribute to cost certainty in that as a result of the pre-agreement, the supplier receives a fair price for the product or service which covers their production and/or supply costs and leaves them with a profit.
		+
		+	In the absence of agreement, their may be uncertainty about price.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 16:00, 24 January 2020

2020-01-24T16:00:45Z

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	Price is the amount paid for acquiring a product or a service. It is not the same as cost, which is the amount incurred in making something or providing a service. Price is therefore understood from the buyer’s perspective while cost is understood from the producer/supplier's perspective.		Price is the amount paid for acquiring a product or a service. It is not the same as cost, which is the amount incurred in making something or providing a service. Price is therefore understood from the buyer’s perspective while cost is understood from the producer/supplier's perspective.

−	Price certainty is a state of affairs whereby before a project or part of a project starts, a contractor is be able to buy materials and components at a fixed, pre-agreed price which is both competitive (possibly below the market average) and advantageous. Certainty is provided by the supplier that the goods will be supplied at the agreed price and at the right time, possibly over a regular period. The basis of price certainty is forward planning and pre-agreement.	+	Price certainty can describe a state of affairs whereby before a project or part of a project starts, a contractor is be able to buy materials and components at a fixed, pre-agreed price which is both competitive (possibly below the market average) and advantageous. Certainty is provided by the supplier that the goods will be supplied at the agreed price and at the right time, possibly over a regular period. The basis of price certainty is forward planning and pre-agreement.

	For example, a contractor or subcontractor may be able to order a pre-agreed volume of fuel every month at a fixed price for a specified future period. This provides a greater assurance of supply and helps budgeting as it removes the uncertainty of fluctuating fuel costs.		For example, a contractor or subcontractor may be able to order a pre-agreed volume of fuel every month at a fixed price for a specified future period. This provides a greater assurance of supply and helps budgeting as it removes the uncertainty of fluctuating fuel costs.

Designing Buildings: moved Price certainty to Price certainty in the construction industry

2019-12-27T11:53:38Z

moved Price certainty to Price certainty in the construction industry

← Older revision

Revision as of 11:53, 27 December 2019

Editor: Created page with "Price is the amount paid for acquiring a product or a service. It is not the same as cost, which is the amount incurred in making something or providing a service. Price is there..."

2019-08-05T18:17:25Z

Created page with "Price is the amount paid for acquiring a product or a service. It is not the same as cost, which is the amount incurred in making something or providing a service. Price is there..."

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Price is the amount paid for acquiring a product or a service. It is not the same as cost, which is the amount incurred in making something or providing a service. Price is therefore understood from the buyer’s perspective while cost is understood from the producer/supplier's perspective.

Price certainty is a state of affairs whereby before a project or part of a project starts, a contractor is be able to buy materials and components at a fixed, pre-agreed price which is both competitive (possibly below the market average) and advantageous. Certainty is provided by the supplier that the goods will be supplied at the agreed price and at the right time, possibly over a regular period. The basis of price certainty is forward planning and pre-agreement.

For example, a contractor or subcontractor may be able to order a pre-agreed volume of fuel every month at a fixed price for a specified future period. This provides a greater assurance of supply and helps budgeting as it removes the uncertainty of fluctuating fuel costs.

On the supply side, price certainty may contribute to cost certainty in that as a result of the pre-agreement, the supplier receives a fair price for the product or service which covers their production and/or supply costs and leaves them with a profit.

= Related articles on Designing Buildings Wiki =

* Budget.
* Capital costs.
* Construction costs.
* Construction price and cost indices.
* Cost control.
* Cost information.
* Cost of building.
* Cost overruns.
* Cost plans.
* Cost vs price.
* Front-loaded costs.
* Estimate.
* Hard costs v soft costs.
* Irrelevant cost.
* Operational costs.
* Other development/project costs.
* Relevant cost.
* Whole life cost.

[[Category:Theory]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]