Notice of RetractionRisk analysis and avoidance related with price adjustment formula: Based on FIDIC contract

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

As the post-financial-crisis era comes, the construction enterprises of China are facing more risks in the international engineering contracting market. Thus, how to make full use of the price adjustment formula in the FIDIC contract is studied. The formula was decomposed into six factors, which were the fixed coefficient, price adjustment items, price index, weighting coefficient of adjustment items, base price and exchange rate. The selection of the values of each factor was studied; risks related with each key factor were analyzed, then suggestions about the risk avoidance strategy were given out, respectively. Consequently, the contractors are able to reduce the loss caused by price risks, and to increase economic efficiency.