Phillip Sampson, Jr, Richard Whiteley | Bracewell The prospect of 25 percent tariffs being imposed on all steel and aluminum imports by the newly elected Trump administration, together with the 10 percent increase on tariffs already levied on Chinese imports, has created uncertainty in the construction industry. The uncertainty is permeating existing construction projects because… Continue reading Important Terms for Price Escalation Clauses to Mitigate the Inflationary Effect of Tariffs on Construction Materials
Tag: Price Escalation
Construction Contractors Should Prepare for the Effects of Potential New Tariffs on Construction Material Prices and Availability
C. Ryan Maloney | Shutts & Bowen President-elect Donald Trump recently stated on November 25, 2024, his intention to impose tariffs of 25% on all goods coming from Mexico and Canada on his first day in office unless those countries do more to stop the flow of migrants and the opioid fentanyl into the United… Continue reading Construction Contractors Should Prepare for the Effects of Potential New Tariffs on Construction Material Prices and Availability
Put Up or Shut Up: Court Grants Summary Judgment for Steel Sub in Price Escalation Clause Dispute
John Mark Goodman | BuildSmart An Illinois federal court ruled in favor of steel subcontractor Nucor in its contract dispute with Direct Steel. The project involved the construction of pre-engineering metal buildings for the Army Corps of Engineers. The general contractor, Direct Steel, subcontracted with Nucor for the supply of steel materials. The contract included a “Must Ship… Continue reading Put Up or Shut Up: Court Grants Summary Judgment for Steel Sub in Price Escalation Clause Dispute
Price Escalation Impacts
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
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