• Login
    View Item 
    •   Home
    • University of Alaska Anchorage
    • Graduate School
    • Student Projects for Graduate Degrees
    • View Item
    •   Home
    • University of Alaska Anchorage
    • Graduate School
    • Student Projects for Graduate Degrees
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Browse

    All of Scholarworks@UACommunitiesPublication DateAuthorsTitlesSubjectsTypeThis CollectionPublication DateAuthorsTitlesSubjectsType

    My Account

    Login

    First Time Submitters, Register Here

    Register

    Statistics

    Display statistics

    Guidelines and consideration for construction contractors using commodity futures as hedging tools for mitigating construction material pricing risk

    • CSV
    • RefMan
    • EndNote
    • BibTex
    • RefWorks
    Thumbnail
    Name:
    Ivanoff 686B - Final Project PM.pdf
    Size:
    1.295Mb
    Format:
    PDF
    Download
    Author
    Ivanoff, Ian
    Keyword
    construction contractor
    commodity future
    construction material
    price risk
    volatility
    hedging
    Metadata
    Show full item record
    URI
    http://hdl.handle.net/11122/7494
    Abstract
    Many would argue that risk management is the single most important element of a construction contractor's business enterprise. A significant risk to a contractor’s profitability is increased costs of construction materials. In many cases construction materials are the largest single component of a construction project budget. Contractors generally utilize contingency funds or contractual price adjustments clauses to address the risk associated with changes in construction material pricing. However, the use of contingency and contractual mechanisms comes at a cost. The additional costs are especially detrimental in construction markets that are competitively bid, because higher bid prices result in winning fewer jobs. An alternative risk mitigation is the use of commodity futures to hedge the risk of increasing construction material prices. A hedge is strategy for limiting losses by holding a portfolio of noncorrelated assets. The research of this study evaluates the application of commodity futures for hedging material pricing risk in the construction industry. Through statistical analysis and simulation studies this research concludes that utilizing commodity futures as a hedging strategy is effective risk mitigation against increased construction material costs. In addition, through a literature review this study explains the fundamentals of the commodity future market, and presents the mechanics of trading commodity futures. A guideline for using commodity futures as a hedging tool is included in this study.
    Table of Contents
    Title Page / Table of Contents / List of Exhibits / List of Appendices / Abstract / Introduction / Literature Review / Research Methodology / Analysis / Results / Hedging Guidelines & Considerations / Conclusions / Recommendations for Further Research / Acknowledgements / Appendices
    Date
    2017-05-01
    Publisher
    University of Alaska Anchorage
    Type
    Report
    Collections
    Student Projects for Graduate Degrees

    entitlement

     
    ABOUT US|HELP|BROWSE|ADVANCED SEARCH

    The University of Alaska is an affirmative action/equal opportunity employer, educational institution and provider and prohibits illegal discrimination against any individual.

    Learn more about UA’s notice of nondiscrimination.

    Open Repository is a service operated by 
    Atmire NV
     

    Export search results

    The export option will allow you to export the current search results of the entered query to a file. Different formats are available for download. To export the items, click on the button corresponding with the preferred download format.

    By default, clicking on the export buttons will result in a download of the allowed maximum amount of items.

    To select a subset of the search results, click "Selective Export" button and make a selection of the items you want to export. The amount of items that can be exported at once is similarly restricted as the full export.

    After making a selection, click one of the export format buttons. The amount of items that will be exported is indicated in the bubble next to export format.