Romania's Construction Contracts: Do Price Adjustment Formulas Really Beat Inflation?

Romania's Construction Contracts: Do Price Adjustment Formulas Really Beat Inflation?

This deep-dive analysis reveals the real impact of inflation on public construction contracts in Romania. Since Public Procurement Law 98/2016 made price adjustment clauses mandatory, which formulas actually protect contractors and public budgets?

We dissect 8 common price adjustment formulas used in Romanian public projects from 2018 to 2024—a period covering economic stability, the COVID-19 pandemic, and record inflation. Using official contract data, legal texts, and National Institute of Statistics (INS) figures for materials, labour, and fuel, we model their performance over 12, 24, and 36-month projects.

📚 Related Keywords
Public Procurement Law 98/2016, price adjustment clause (clauza de ajustare a prețului), construction contract management, inflation in construction, construction cost index (INDIC), CUI code, FNCIR, Romania construction market 2024, public project financing, contract financial balance, construction materials prices, labour cost escalation, risk management in construction, COVID-19 impact construction, EU funded projects Romania.

This study is crucial for:
Contractors & Bidders: To understand your financial risk and negotiate better terms.
Public Authorities & Project Owners: To design fairer, more resilient contracts that maintain budget predictability.
Consultants & Lawyers: To advise clients on procurement strategy and contractual risk.
Students & Researchers in economics, construction, and public administration.

Sources & Legal Framework:
Public Procurement Law 98/2016
Romanian National Institute of Statistics (INS) - price indices
FNCIR & INDIC construction cost indices
Official public contract documentation (SEAP)

Disclaimer: This video is for informational and educational purposes only. It does not constitute legal or financial advice. For contract-specific decisions, please consult with qualified professionals.

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Price Adjustment Mechanism in Assessing Romanian Public Procurement of Construction Contracts

Layman Abstract :
This chapter examines how construction contract prices in Romania are adjusted to reflect rising costs after the 2016 public procurement law. By analysing real projects and official cost indices, it shows that inflation strongly affects construction contracts, while only a few adjustment formulas truly follow inflation trends. The findings highlight the need to carefully study price adjustment methods to keep public construction contracts financially fair and stable.

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