Trend Analysis of Final Construction Prices: The Turkish Case

Authors : Savaş Bayram

Pages : 107-117

Doi:10.30931/jetas.442642

View : 13 | Download : 5

Publication Date : 2018-08-30

Article Type : Research

Abstract :The 2003 year is accepted as a milestone in the Turkish procurement system. About fifteen years ago, the Public Procurement Law, nr. 4734 enacted instead of the State Procurement Law, nr. 2886. Although the current law was enacted with high expectations, e.g. prevention of the waste of public resources, the number of benchmark field studies conducted under this amendment is limited. Construction works constitute majority of the Turkish public procurements in monetary terms. This study investigates the trend analysis of the construction prices of public projects. The sample consist a total of 461 public building projects. 272 of these projects were procured in accordance with the State Procurement Law, nr. 2886 and 189 were procured in accordance with the Public Procurement Law, nr. 4734. These projects were completed in three metropolitans of Turkey as; Adana, Ankara and Gaziantep. Data of; completion month-year, contract price and final price of all these projects were collected. Trend analysis of the construction prices of the projects were performed separately for both procurement laws using Mann-Kendall analysis and Spearman's rho analysis. Increasing trends have been observed for both contract prices and final prices of the building projects. It was found that the signs of the financial crisis lived in November 2000 and February 2001 in Turkey could be read much earlier in the Turkish construction sector investments.
Keywords : Construction works, final price, Mann-Kendall, procurement, Spearman's rho, trend analysis