Aaron Evenchik and Kelsey Smith | Hahn Loeser & Parks President Trump’s prospective assessment of 25% tariffs on certain materials coming from Canada and Mexico, and prospective 10% tariffs on certain material from China, may increase contractor costs in fulfillment of construction contracts. While the details of which materials are tariffed will be clarified in… Continue reading Impact of Tariffs on Construction Costs
Tag: Construction Costs
War-fueled Construction Cost Increases May Warrant Look at Force Majeure
Evan A. Brown | Stoel Rives The Russian invasion of Ukraine and economic sanctions imposed by countries around the world in response have disrupted supplies of fuel, steel, and other materials necessary for construction. This has resulted in price escalation that threatens construction project budgets. Owners and contractors across the country are running to their… Continue reading War-fueled Construction Cost Increases May Warrant Look at Force Majeure
Force Majeure Application to Increase in Price of Materials
Kent B. Scott | Babcock Scott & Babcock Is a substantial increase in the cost of materials covered by a force majeure provision? If so, what is the appropriate remedy? Short Answer In short, the answer is dependent on the terms of the specific contract. If a contract is a fixed price contract, an increase… Continue reading Force Majeure Application to Increase in Price of Materials
Material Cost Escalation: Who Bears the Cost Now? And, What Can Be Done to Address the Problem in the Future?
Sherman Botts | Stinson While an increase in construction costs for materials is not new to the industry, the extent of the cost increases during this COVID-19 time may be beyond anyone’s experience. Prior to COVID-19, material costs have spiked for many products, such as oil, asphalt, concrete and plywood. Those cost increases may have… Continue reading Material Cost Escalation: Who Bears the Cost Now? And, What Can Be Done to Address the Problem in the Future?
Construction Costs Must Be Reasonable
David Adelstein | Florida Construction Legal Updates When it comes to proving a construction cost, particularly a cost in dispute, the cost must be REASONABLE. Costs subject to claims must be reasonably incurred and the party incurring the costs must show the costs are reasonable. An example of the burden falling on the contractor to prove… Continue reading Construction Costs Must Be Reasonable