Study On Method Of Construction Contract Price Adjustment Under Building Materials Price Fluctuate

The focus of owner's cost management consists in cost of construction. Building materials cost, which occupies a large proportion of it, is paid more attention. A real estate project with long development period is likely to meet risk or interest of building materials price fluctuate. Sharing the price risk through the method of price adjustment in construct contract will avail owner's cost management. The method should be simple, steady, controlled and accurate. But the available ones' performance or accuracy is insufficient. This paper will study and analyze the reference prices, reasonably suppose some conditions, and attain a new method of price adjustment in the end. Finally, two examples explain the application of the new method.