Navigating Price Adjustment in Construction Contracts: Legal Framework, Analysis, and Recommendations

This paper presents a comprehensive analysis of contract price adjustment mechanisms in Egypt’s administrative construction contracts, governed by the Egyptian Law of Contracts concluded by Public Authorities No. 182 of year 2018 and its executive regulations. It delves into the complexities of applying the provisions of the law addressing cost fluctuations and subsequent contract price adjustments. The study critically examines these provisions, identifying the main challenges arising during implementation and highlighting the legal and procedural obstacles encountered. By adopting a multifaceted approach that includes in-depth legal analysis, comparative evaluation of international customs and practices, and insights from professional interviews, alongside a real-life case study, the paper, aims to offer practical recommendations to enhance the efficiency of price adjustment mechanisms in Egypt’s administrative contracts, analyzes and provides clarity on the ambiguous provisions of the law. By integrating theoretical and practical perspectives, this study contributes to the broader discourse on contract administration with the aim of refining price adjustment practices and supporting the development of more resilient frameworks within Egypt’s public construction sector. This analysis is especially pertinent given the ongoing economic volatility in Egypt and the region and its profound impact on the costs of construction projects.