Publication detail

Effective hedging of business risks via protective instruments in public works contracts

ANDRLOVÁ, B. KORYTÁROVÁ, J.

Original Title

Effective hedging of business risks via protective instruments in public works contracts

Type

conference paper

Language

English

Original Abstract

According to the Act on Public Procurement issued in the Czech Republic in 2016, the contracting authority specifies a set of economic qualification criteria and technical qualification criteria in order to establish human resources, technical resources and the expertise and experience necessary to perform the contract acceptable. For building construction project, meeting all qualification requirements does not yet represent protection of the contracting public authority to the potential business risks connected with the construction contract. At this moment, protective instruments in the contracts for works must be used to ensure the delivery of contract on time, cost and quality. The paper analyses the contracts for public works in the field of retirement homes for the elderly which were built in last six years in the Czech Republic. The aim is to determine the hedging of business risks and the most frequently used protective instruments applied to solve the potential business risks, how efficient they are and whether the frequency of the applied instruments contrasts with other types of construction contracts. A quantitative analysis of the currently used protective instruments in the contracts for public works is performed. The outcomes of the empirical study are compared with previous research of authors in the field of revitalization of school buildings and sewage facilities and equipment. Overall, the research paper identifies what protective instruments are currently employed, at what amounts and whether the instruments fulfil the functions required to protect both investors and contractors during the contract period and to ensure quality of public construction works contracts with the criteria of economy, efficiency and effectiveness.

Keywords

bank guarantee; business risk; protective instrument; public works contract; standard contract for works

Authors

ANDRLOVÁ, B.; KORYTÁROVÁ, J.

Released

14. 2. 2019

Publisher

Varazdin Development Entrepreneurship Agency

Location

Varazdin, Chorvatsko

ISBN

1849-7535

Periodical

Book Series: International Scientific Conference on Economic and Social Development

State

Republic of Croatia

Pages from

710

Pages to

719

Pages count

10

URL

http://www.esd-conference.com/past-conferences

BibTex

@inproceedings{BUT156874,
  author="Barbara {Andrlová} and Jana {Korytárová}",
  title="Effective hedging of business risks via protective instruments in public works contracts",
  booktitle="37th International Scientific Conference on Economic and Social Development – {"}Socio Economic Problems of Sustainable Development{"}",
  year="2019",
  journal="Book Series: International Scientific Conference on Economic and Social Development",
  pages="710--719",
  publisher="Varazdin Development Entrepreneurship Agency",
  address="Varazdin, Chorvatsko",
  issn="1849-7535",
  url="http://www.esd-conference.com/past-conferences"
}