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Fixed prices
The clients in the market in which Strukton operates usually want to transfer risk in exchange for a fixed price. Strukton accepts only those risks that the company itself can manage. Depending on the contract form, these risks might generate
losses and negative cash flows as a result of inaccurate estimates.
As part of its project monitoring method, Strukton has been using an advanced system for many years to identify and quantify risks in both the acquisition and execution phases. Using this model, the Group Management Board can regularly determine the group’s risk profile. In the current period of potentially volatile raw material costs, Strukton is cautious in its acceptance of inflation risks. Adequate indexation is an important consideration on long-term projects.
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