Bank Guarantees of Construction Projects, their Concept in Management Accounting and Role in Regional Development

Abstract

On a regional scale, the intensity of construction projects is an advantage, acts as a multiplier and increases the economic potential of the region. It is a fact that construction projects are a great financial burden for investors and are associated with significant risks that can influence the regional development. These risks arise from both the project itself and from a large number of stakeholders with. Some measures of risk can be eliminated. One such risk is to ensure the keeping the contractual liabilities. For this reason, various forms of bank guarantees are used, but they increase contractor costs and project price. Regional decision is how much the contract is necessary for the positive development of the region and ensuring positive economic cash flows. Meet deadlines and flexible reactions to the current situation is in the company supported with maintaining financial frameworks at several banking institutions. The price depends on many factors including size of the company and financial situation. Then financial costs related to construction have not only variable character, but are also fixed. Market uncertainty, the changing status of labour supply on the one hand and maintaining financial frameworks, capacity and long-term contractual obligations on the other hand, requires a flexible response with respect to cost control. The aim of the paper is to analyse the current situation, define key factors for the pricing of bank products and their impact on the construction price. Methods of pricing, costing, accounting will be used for suggestion of a suitable model for true display and management of financial costs with regard to the construction specifics. These outputs will serve as a basis for finding questionable areas in this area and will be a subject to further investigation.