News & Analysis as of

Construction Contracts Supply Chain Price Inflation

Bracewell LLP

Important Terms for Price Escalation Clauses to Mitigate the Inflationary Effect of Tariffs on Construction Materials

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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...more

Vinson & Elkins LLP

Once More Unto the Breach: Navigating Supply Chain Disruption Amid the Trade Wars – a Construction Contract Checklist

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The tectonic plates have shifted once again, this time with trade tariff announcements from the incoming Trump administration, sowing the seeds for another potential supply chain disruption event. In times like these owners,...more

Stark & Stark

Pre COVID-19 Construction Cost Estimates Are Likely Outdated

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In New Jersey (and virtually all other states), construction defect cases for common interest community associations are heavily reliant on expert witnesses. Even if a building system is obviously defective — in that windows...more

Porter Hedges LLP

Price Escalation Considerations in Construction Contracts

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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...more

Snell & Wilmer

Managing Market Volatilities in Your Construction Contract

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At the beginning of the COVID-19 pandemic, supply chain challenges caused production and transportation delays, as well as price increases, for construction materials. At that time, many contractors looked to include...more

Woods Rogers

Now That’s A Steel: VDOT Issues Memorandum for Steel Escalation Price Adjustments

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Construction material prices have been extremely volatile, negatively impacting virtually all projects. Recently, VDOT issued guidance on steel escalation, but for VDOT projects only...more

Hahn Loeser & Parks LLP

Contracting Issues for 2022 - Hahn Loeser

Contractors learned many lessons from 2020-2022 on material/labor availability, price escalation, and contractual allocations of risk. Prudent contractors will consider this in contracts moving forward....more

Tarter Krinsky & Drogin LLP

Cost Increases Up the Ante for the Construction Industry – Is a Price Escalation Clause Your Best Bet?

Charter schools have experienced some of the highest enrollment growth due to pandemic-related factors influencing how we rethink education. As a result, there continues to be significant increase in the renovation and...more

Williams Mullen

Material Price Escalation: Workable Compromises Versus Traditional Allocation of Risk Expectations

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Rapid material price escalation is a costly reality of today’s construction industry. How long this escalation will be a reality is anyone’s guess. In the meantime, there are workable solutions; but those pressing for...more

Cole Schotz

Is Your Contract Ready for the Ongoing Impact of COVID?

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The COVID-19 pandemic has lasted two years, and while offices, projects, and the rest of life begin to return to pre-pandemic normal, the construction material supply chain and costs have not. In fact, it appears as though...more

Fox Rothschild LLP

Material Escalation: A Difficult Road to Recover Costs

Fox Rothschild LLP on

The annual inflation rate in the United States rose 7% in 2021, its highest rate since 1982. The construction industry has not been immune from this general trend, with steel prices rising 200% and lumber prices soaring as...more

Snell & Wilmer

Cost Escalation - Are You Ready? Contract Tune Up for 2022

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Looming large on the 2022 construction landscape horizon is the specter of cost escalation claims. Over the past year, rising prices have become extreme, and the clauses governing cost escalation have come under greater...more

Snell & Wilmer

Construction Cost Impacts Post COVID-19: Cost Escalation and Delay

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The current state of the construction industry as it concerns cost escalation and supply issues is one of uncertainty and time of performance problems resulting in increasing costs. There are major disruptions and delays in...more

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