CHALLENGES OF SELECTED CIVIL ENGINEER IN 4TH DISTRICT, NUEVA ECIJA IN HANDLING PRICE ESCALATION IN DOING CONSTRUCTION WORKS

Abstract

Unpredictable market fluctuations, including rising material costs, labor shortages, and changing economic conditions, can disrupt project budgets and timelines, making price escalation a significant challenge in construction works. Price escalation refers to the difficulties encountered and strategies employed by civil engineers when dealing with increasing costs in the construction industry. Civil engineers face various challenges related to rising prices and adopt different strategies to manage these issues. This study aimed to determine the challenges encountered by civil engineers in handling price escalation in selected areas of District 4, Nueva Ecija. This study employed a phenomenological research design to examine the challenges encountered by civil engineers due to price escalation and the strategies they used to address these challenges in District 4, Nueva Ecija. A qualitative approach was utilized for data gathering, using semi-structured interviews supported by audio recordings. Participants were selected through purposive sampling and met the study’s criterion of being licensed civil engineers. The selected participants expressed significant problems related to price increases, primarily involving expensive construction materials, variations in cost proposals, and financial difficulties. To address these challenges, participants implemented strategies such as contingency planning, cross-cutting measures, and informing clients about cost changes. These strategies helped reduce issues at construction sites and contributed to smoother project implementation for engineers, construction workers, and contracted businesses. The findings indicated that civil engineers faced multiple challenges due to price escalation, including variations in cost proposals, high material costs, and financial constraints. Clients often preferred lower-cost materials and were sometimes uncooperative, which could lead to project delays or cancellations. However, most engineers were able to manage these challenges by adjusting prices and waiting for proper documentation, thereby avoiding contract revisions. Although construction projects remained demanding, civil engineers demonstrated awareness of effective strategies to address price escalation.