Mechanisms for transfer of price risk of construction materials

Depending on the contractual arrangement, fluctuations in materials prices expose different parties involved in a construction contract to various degrees of risk. In general, owners and/or contractors face the risk of losses when the prices of materials move upwards. Suppliers, on the other hand, face the risk of losses when the prices of materials move downwards. This study addresses this risk, taking all parties into consideration. It presents a mechanism for transferring this risk through the use of futures markets. By trading futures on construction materials; owners, contractors and suppliers may be better off when hedged against price fluctuations. They may also benefit from the positive aspects of futures trading, since this should provide a more competitive construction materials industry, and an efficient medium of disseminating valuable price information in a timely manner and at a relatively cheap cost.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Civil Engineering

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2011

Author dc:creator

• Hassanein, Mohammad Amr A.G.

Contributors dc:contributor

• Boyer, LeRoy T.

• Business Administration, Management
• Economics, Finance
• Engineering, Civil

Statement dc:rights

• Copyright 1990 Hassanein, Mohammad Amr A. G.

Language dc:language

eng

Identifier

AAI9021695
(UMI)AAI9021695

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/20833