Appropriateness of cida price fluctuation formula for road construction in Sri Lanka

Abstract

The use of the construction industry development authority (CIDA) formula of price fluctuation will help to claim unpredicted costs in construction projects at least up to a satisfying level. However, some limitations were made when preparing the formula to ease the calculation. Therefore, the project aims to find out the factors affecting the CIDA price fluctuation formula and to identify the appropriate use of the CIDA price fluctuation formula for road construction. A mixed approach was utilized for the study. A broad study of the literature review was intended to a price fluctuation concept and price fluctuation reclamation methods and the significance of road construction projects. The semi-structured and structured close-ended questionnaires were carried out to collect data to identify issues and factors affecting the formula. The qualitative data were analyzed through Qualitative Data Analysis (QDA) Miner lite software while quantitative data were analyzed through SPSS software. A framework was developed concerning outcomes. The price indices, coefficient (0.966), input percentage of construction inputs were found as internal factors which are affecting the formula with their issues and also the difficulties faced while calculation of those internal factors, type of the contract, assumptions which are used to make the formula were found as the external factors. This framework can be recommended to use as a tool before commencing the price fluctuation calculation using the CIDA formula for understanding which factors are mostly helping to increase the appropriateness of the CIDA formula in the road construction sector.