Scott Jones of Adams and Reese LLP Published June 3, 2021 The cost of building materials has risen significantly this year
Multiple factors have caused prices for critical construction materials to soar to unprecedented heights
Recovery for labor and materials is limited even in contracts that contain EPA clauses...To obtain an adjustment, the net change in rate of pay for labor or materials must be at least 3% of then-current total contract price
But not all delays matter when it comes to claims and remedies available to the contracting parties in dispute resolution, where the determinative focus is on material delays impacting the entire project and on delays the claimant can credibly prove
Best Practices for Addressing Increasing Materials Costs Balancing Overall Project Costs. One obvious way to lessen the impact of increased material costs is to reduce costs elsewhere
In general, absent contrary contract language, the contractor bears the risk of material price escalation...The best protection is to specifically address material price escalation in the contract – if you can
Delays in Critical Material for Bridge Contractors: Managing Risk Through Proactive Planning and Strict Adherence to Notice Requirements By Aaron S
Published September 8, 2020 We are hearing about a budget pinch from many homebuilder and general contractor clients tied to the substantial increases in the cost of lumber and other materials; HBA Iowa reports about an 80% increase in lumber costs since mid-April. As the cost of materials for build projects soars, builders and contractors should review their contracts carefully to see if they have options to get some or all of the increased costs covered by the owner and consider revising their future contracts to help protect themselves against abnormal material cost increases.
The owner should be informed about the fluctuation in material prices and labor supply...These types of clauses allow the price of material or labor to increase due to events and circumstances beyond the contractor’s control
This allocation can be applied either to material costs in general, or to specific types of materials that are particularly high risk (e.g., steel, lumber, or copper)