Investigation of Price Escalation and Its Mitigation Mechanisms on Selected Building Construction Projects of Jimma University

Abstract

Fee escalation in construction refers to a boom in the price of an item inside the preliminary agreement or the bottom cost of an undertaking. racking production mission fees must be an ongoing procedure that must always be carried out on all projects, because the reasons for which the price will increase vary from project to project and due to the construction segment. The motive of this observation was to assess fee escalation, escalation factors and mitigation mechanisms in deciding on construction initiatives. From February 1 to 30, 2020, a questionnaire was administered to twelve workers and interviews with seven key informants were conducted for an in-depth look at four selected Jimma University construction projects, which were project A to project D. Relative importance index values were generated and ranked for the elements affecting fee escalation to see their relative significance. It was found that there has been a moderate degree of charge increase within the initiatives studied, from 12% to 21%. The mitigation modalities observed with the aid of the projects, particularly inserting escalation clauses in contractual agreements, making changes requiring funding and increasing time limits, seem to be inadequate, as they do not provide a foundation for choices and remedy of disputes instead of mitigating the escalation of tasks starting from 3.21% to 12%