Denise M. Motta | Gordon Rees Scully Mansukhani This Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by price escalation. Construction projects are being impacted by increased costs for most construction materials. The Producer Price Index… Continue reading Price Escalation Impacts
Tag: Price Escalation
Managing Risk On Construction Projects: The Benefits of Price Escalation Clauses
Taylor M. Hayes and J. Daniel Weidner | Koley Jessen Imagine two contractors, both managing the construction of new office buildings along Omaha’s Dodge Street. A sudden global event causes material prices to skyrocket. Contractor A, without a price escalation clause in their contract, must absorb these unexpected costs, risking financial strain or even losses.… Continue reading Managing Risk On Construction Projects: The Benefits of Price Escalation Clauses
Price Escalation Considerations in Construction Contracts
Amy Wolfshohl | Porter Hedges With material cost volatility in the current market, the topic of price escalation clauses is more prevalent. Some material costs are up and other costs are now down. Traditional lump sum contract structures do not take into account price escalation or de-escalation; whereas cost plus structures entirely and naturally account… Continue reading Price Escalation Considerations in Construction Contracts
Price Escalation in Construction Projects: How to Protect Your Interests
Samantha Carmickle | Winthrop & Weinstine The COVID-19 pandemic has had implications that no one ever expected (toilet paper shortage anyone?). Added to the ever growing list of unanticipated consequences: price escalation in construction projects. In April 2021, supply chain disruptions started leading to increased costs associated with construction projects, and those increased costs have… Continue reading Price Escalation in Construction Projects: How to Protect Your Interests