This year, the construction industry continues to face unprecedented escalation in material pricing as the world begins the rebound from the COVID-19 pandemic. Tariffs, supply shortages, weather, the blockage of the Suez Canal, 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.
Price volatility abounds, and the current industry standard places much of the risk 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.
In this Washington Building Congress webinar, Cohen Seglias partners John Greenhall and Jackson Nichols will share steps contractors can take when existing contractual language inadequately addresses changing conditions. They will also discuss how to use the traditional change order process to capture such costs or negotiate new price escalation clauses.