Over-budget projects have become more common lately in the construction industry. This can lead to negative effects such as disputes between construction operators, closure of projects and reduced construction activity. In addition, increased construction costs risk financial strain for the entrepreneurs, which can lead to bankruptcy and a lower number of entrepreneurs in the market. With the recent large cost variations for, among other things, various building materials and fuels, it is of great interest as an entrepreneur to be able to protect yourself against cost increases. Therefore, it is important that an entrepreneur knows which financial instruments are available and what an effective financial risk management process can look like.The purpose of the study is to investigate which financial instruments are available that can protect a contractor against increased costs during the contract period. In addition, the study aims to investigate how the research believes that financial risk management should look like, both in tender phase and in the construction phase.The study's theory deals with which financial instruments an entrepreneur can use to protect themself against cost increases in a contract and how financial risk management should look like. The methods that the study covers are budget contingency, index regulation, General Regulations and the impact of inflation. The study also describes the Successive Principle as a method for managing uncertainties in a project. The study's theory regarding financial risks deals, among other things, with the four steps of identification, assessment, pricing and management of risks in the tender phase. In addition, how to deal with extern risks and risks in the construction phase are described.In order to compare the theory of the study linked to the research questions, BDX Företagen AB has been studied as a case company to see how a company in the industry works regarding financial risk management and protection against cost increases. In addition, interviews with the Swedish Transport Administration have been conducted to get the client's view on the matter. After the completed case study, some shortcomings were discovered with the methods described in the theory section, as well as opportunities for improvement regarding the case company's risk management and use of protection against cost increases. These are described as findings in the study. Some of the findings of the study are:-       A better index will be needed in the industry for an entrepreneur to be able to leave a fixed price.-       The Swedish Construction index is to be shut down and there is currently no substitute.-       There is no standardized way to interpret the General Regulations, which means that the assessment will be different from project to project.The study presents a number of recommendations the case company and other similar companies in the construction industry can make use of. The recommendations are based on the theory section and the shortcomings discovered in the case study. Some of the recommendations are:- Consider inflation when calculation projects.- Implement the Successive Principle when assessing risk and opportunities.- Develop a routine to transfer the risks from the tender phase to the construction phase.Financial risk management and protection against cost increases are of great importance to an entrepreneur in the construction industry. If these things are not taken into account, the entrepreneur risks financial losses, which in the worst case can lead to bankruptcy.