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.
