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25% of orderers refused to change contracts due to soaring prices, remarkable strictness of private works / Ministry of Land, Infrastructure, Transport and Tourism survey
According to a survey conducted by the Ministry of Land, Infrastructure, Transport and Tourism targeting major prime contractors from January to March, there were 25% of cases where the ordering party did not accept the offer to change the contract due to the soaring prices of materials and crude oil. I understood. In 14% of cases, the prime contractor refused the contract change offer from the subcontractor. There is a strong tendency that contract changes have not been made properly between the ordering party and the ordering party, and the fact that the price transfer to the ordering party has been delayed has become clear.
Based on the government policy to promote smooth pass-through of labor costs, raw material and fuel costs, we conducted hearings along with monitoring surveys centered on the prime contractors with the highest completed construction costs. We asked the branch offices of the main contractors and the current site managers about the effects of rising prices on all of the recent construction work, whether public or private.
15% of cases do not include contract change clauses based on price fluctuations among ordering parties. Of these, 6% answered that "it may be included in the public works but not in the private sector", revealing the disparity with public works projects that include slide clauses due to price fluctuations in the public works standard contract agreement. became. In 10% of cases, the contract change clause was not included between the former and the lower.
Looking at the individual responses, there are voices saying, "There are situations where we have to delete the price fluctuation clause at the request of the customer" and "the contractor bears the risk of price fluctuation" with the private orderer in mind. there were. Contract change clauses are required to be thoroughly set as they serve as a starting point for accepting consultations and consultations that guarantee proper transactions.
The reasons why the contract change offer is not accepted by the ordering party include "convenience of the customer's budget" and "if the relationship between sales and the customer is good, we may discuss it".
In the background of refusing the contract change offer from the subcontractor, he said, "There is an atmosphere that it is difficult to offer the contract change to the orderer", and "We may respond to the subcontractor's request even if we cut the profit of our company." was there.
91% of the total is calculated in consideration of rising prices and presented to the ordering party. The percentage of those who ordered such estimations and explanations was 65%. Considering that the crisis in Ukraine became more serious and inflation entered a new phase during the survey period, it is highly possible that the impact on the field will be greater than the results of the hearing. Appropriate measures for smooth price pass-through are urgently needed between the ordering party and the former and lower customers.
