Building modification contract guidelines amended

Construction

Hungary's Public Procurement Council has amended guidelines for modifying contracts that establish a legal framework for sharing the burden of higher building material costs, construction industry association Évosz said yesterday, according to novekedes.hu.

The amended guidelines are the product of "inclusive negotiations," Évosz said.

The association added that it has recommended a price indexing system to the Public Procurement Authority that could be used to manage price changes.

Association chairman László Koji noted that public sector orders account for about 60% of construction companies' business.

Évosz said prices in "a large part" of contracts may need to be rethought in the light of significant building material price rises in 2021 and 2022.

Construction companies can't carry the burden of risks related to price increases and higher costs alone, the association added, pointing to the impact of the war in Ukraine, dearer energy and the weaker forint on prices.

The guidelines for public sector orders may also be applied to home construction and renovation contracts, the association said.

ADVERTISEMENT

World Hurtling Towards Recession and Possible Financial Cris... Analysis

World Hurtling Towards Recession and Possible Financial Cris...

Lawmakers postpone expanded data provision for tourism secto... Parliament

Lawmakers postpone expanded data provision for tourism secto...

Dóra Petrányi to co-head CMS Tech, Media, and Comms Group Appointments

Dóra Petrányi to co-head CMS Tech, Media, and Comms Group

Budapest targets tourists with public transport fare hikes City

Budapest targets tourists with public transport fare hikes

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.