Thursday, June 26, 2008
Through the Roof” Material Price Escalation and Construction Services
The Problem
Through the Roof” Material Price Escalation and Construction Services
The Problem- Material prices increasing
- Most construction contracts are fixed-price contracts and can take a year or more to complete
- Such contracts are typically based on material prices estimated at the beginning of the project
- Most construction contracts/projects today have relatively slim profit margins
- Delayed delivery of materials due to shortages
- Can delay an entire project and put contractors at risk of liquidated damages, extended overhead, etc.