By: Brian Perlberg, ConsensusDocs Executive Director & Senior Counsel

Today’s construction is facing spikes in prices, which threaten builders’ financial viability.  As the leader of construction contract documents with an unprecedented Coalition of leading construction organizations to draw upon, ConsensusDocs has compiled resources addressing price escalation below:

Owners, constructors, general contractors, and subcontractors should consider price escalation/de-escalation clauses in these times of uncertainty. ConsensusDocs is the only publisher of such a clause. The ConsensusDocs 200.1, Standard Time and Price Impacted Materials Addendum and Schedule A, will be made available on all paid subscription packages. “Rather than guess at price fluctuations, owners and builders would be wise to consider a best practice price escalation clause that can go up, or down, that will be tied to an objective standard agreed ahead of time,” said Brian Perlberg, Executive Director and Senior Counsel for ConsensusDocs. “A hope and contingency fund is not a risk management strategy.”

ConsensusDocs standard construction contracts are the only contracts written and supported by a coalition of leading design and construction industry organizations. With a catalog of 100+ contract documents addressing all project delivery methods, ConsensusDocs contracts incorporate fair risk allocation and best practices to represent a project’s best interests. The Coalition’s organizations collectively represent hundreds of thousands of design professionals, owners, contractors, subcontractors, and sureties.