Over the past few years, the construction industry has faced unprecedented escalation in material pricing and corresponding material shortages. Tariffs, supply shortages, weather, war, and other world events have contributed to a risky environment for owners, contractors, and subcontractors alike. Steel prices at mills in the United States are up 60% – 100% in the last six months, lumber prices have skyrocketed, and supply chains have been impacted on both a cost and time basis.
As supply shortages abound, much of the risk remains on the contractors. Given that these conditions could persist for months (if not longer), contractors should arm themselves with the proper understanding of how to protect their companies. At the 2022 Construction Financial Management Association (CFMA) Mid-Atlantic Regional Conference, Jonathan Cass will share the steps contractors can take when existing contractual language inadequately addresses changing conditions. He will also discuss how to use the traditional change order process to capture such costs, negotiate new price escalation clauses, or account for potential shortages.
Learning Objectives
- Attendees will understand some of the key obstacles contractors face in obtaining supplies.
- Attendees will learn best practices for proactively addressing potential shortages through contract provisions.
- Attendees will understand the ways change orders can be used to account for price increases resulting from supplys limitations.