Clocking in with PilieroMazza: New Board Cases Provide Guidance for SCA Price Adjustments
In light of recent disputes, international construction firms are rethinking how they draft force majeure and price escalation provisions to better address tariff-induced cost increases. While traditional force majeure...more
In a court opinion that borrowed at length from the infamous “My father made him an offer he couldn’t refuse” scene from The Godfather, Warner’s client AirBoss Flexible Products prevailed in a high-profile supply chain...more
For contractors and subcontractors providing certain services to the federal government, compliance with the Service Contract Act (or Service Contract Labor Standards) is required. Unique bidding and performance requirements...more
Do you have 10 minutes or less to stay on top of the ever-changing laws and regulations around labor and employment? Check out PilieroMazza‘s podcast “Clocking in with PilieroMazza: Labor and Employment News for Government...more
For the third year in a row, the IRS adjusted the affordability percentage used for the shared responsibility penalties down. The IRS recently announced that the affordability percentage for 2024 will be 8.39%. This is down...more
Skyrocketing inflation continues to be among the top concerns facing government contractors. To address the problem, Congress authorized the Department of Defense to provide relief for cost increases caused by inflation and...more
In fast-paced industries such as the construction industry, it is easy to assume that standardized form contracts provided by the American Institute of Architects (“AIA”) will prevent, rather than cause, problems further down...more
Obtaining Price Adjustments Under Requirements Contracts - Suppliers in the automotive industry often have fixed price requirement contracts with their customers for the life of a vehicle program. This means pricing, unless...more
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
The Armed Services Board of Contract Appeals (ASBCA) recently issued a decision regarding a contractor’s claim for increased performance costs due to the economic impact of the COVID-19 pandemic. Notable about this case is...more
Monetary inflation effectively imposes a tax on just about everything we purchase. But for many years, inflation was so muted and gradual that the economy could manage it with minimal disruption or personal hardship....more
The global construction and engineering industries are grappling with inflationary pressure, continued impacts from COVID-19 plus material and labour price increases....more
The US Department of Defense issued a memorandum this month refining its guidance on inflation-related economic price adjustments for contractors with existing firm-fixed-price contracts. The updated guidance provides new...more
The ongoing conflict in Ukraine has had a significant impact on commercial activity for many organizations on a local and international scale. Organizations with commercial operations in the region (both Ukraine and Russia)...more
On May 25, 2022, the Department of Defense (“DoD”) issued a memorandum recognizing that contractors are not immune from the “period of unusually high” inflation. The memorandum, titled “Guidance on Inflation and Economic...more
Unless you’ve been living under a rock or on a self-sustaining deserted island, the chances are high that you have become quite familiar with the term “inflation” (i.e., the rising costs of goods and services) over the past...more
Inflation and the increased cost of doing business are having a nationwide impact — and there is no exception for Government Contractors. As we recently covered contractors experiencing material cost escalation on...more
The General Services Administration (“GSA”) Office of Governmentwide Policy recently authorized contracting officers to provide relief to GSA contractors experiencing cost increases due to surging inflation. See Acquisition...more
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
Rising inflation has caused many products and services to cost far more than they did a year ago. But before you pat yourself on the back or curse yourself for signing a long-term contract in advance of the price hikes, it...more
The COVID-19 pandemic has had implications that no one ever expected (toilet paper shortage anyone?). Added to the ever growing list of unanticipated consequences: price escalation in construction projects....more
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
While an increase in construction costs for materials is not new to the industry, the extent of the cost increases during this COVID-19 time may be beyond anyone's experience. Prior to COVID-19, material costs have spiked for...more
The Renewable Market Adjusting Tariff (ReMAT) program at the California Public Utilities Commission (CPUC) is again front and center after Staff working on the Renewables Portfolio Standard (RPS) have issued a Proposal to...more
A recent California Appellate Court decision provided tenants with additional protections when it clarified that local rent control laws applied to a single-family home in which the landlord rented rooms in the home to...more