Investigating the significance of Material Prices Indicators in the Egyptian Construction Projects

Hosny, Suad; Elsaid, Elshaimaa; Hosny, Hossam

doi:10.21608/eijest.2023.214103.1234

Investigating the significance of Material Prices Indicators in the Egyptian Construction Projects

Document Type : Original Article

Authors

¹ Assistant professor of construction Engineering and Management, Department of Construction Engineering and Utilities, Faculty of Engineering Zagazig University, Egypt,

² Department of Construction and building engineering, Zagazig higher institute of engineering and technology, Zagazig, Egypt

³ professor of construction Engineering and Management, Department of Construction Engineering and Utilities, Faculty of Engineering Zagazig University, Egypt,

10.21608/eijest.2023.214103.1234

Abstract

A country's economic conditions and the success of its construction industry are strongly interrelated. The construction sector is vital to any country’s societal and financial development. Prices are known to fluctuate during the implementation phase of construction projects. Construction Material Prices (CMP) represent a large percentage exceeding 60% of the total project cost in Egypt. CMP fluctuate and these fluctuations can be significant enough to threaten the financial conditions of the construction project parties, especially owners, contractors, and suppliers. This research is concerned with identifying the main indicators affecting the CMP and evaluating them in terms of their importance and impact from the perspective of construction experts. The most critical indicators affecting the CMP were identified as thirty-seven indicators. Thirty-three indicators were identified from a literature review, and the remaining ones were identified through interviews with construction experts and brainstorming sessions. These indicators were then categorized into five categories: macroeconomic, economic, market, government, and energy. The questionnaire survey was conducted to rank the indicators according to the calculated relative importance weight. The collected data was analyzed using the SPSS statistical package. The results indicate that the inflation rate, the exchange rate, the interest rate, the local taxes, and transportation costs are critical factors with a mean value of more than 4.

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