While COVID has made the past year wild and unpredictable, this summer could be even wilder with rapidly escalating material costs. Lumber prices have tripled, steel prices are through the roof and PVC has doubled. These increases can turn into real numbers on your projects and if you don’t have any protections in place, the project could turn ugly in a hurry. Now is the time to review your current [...]
Construction contractors are seeing material costs increase, particularly lumber, steel and fuel. As you review your contracts for 2021 and beyond, you may want to consider adding a price-escalation clause the protect against material cost increases. What is a price-escalation clause? In its simplest terms, a price-escalation clause allows contractors to recover material cost increases on a project. While triggering events for escalation clauses vary, the two most popular types [...]
The latest Engineering News Record reported that gypsum board prices rose 12.5% in 2012 and could increase 15.11% in 2013. That’s a huge increase in material costs. Are you doing anything to protect yourself? Do you have an escalation clause in your contracts? What happens if you don’t have an escalation clause? If you don’t have an escalation clause, you are either at the mercy of the contractor to allow [...]
