Evan A. Brown | Stoel Rives The Russian invasion of Ukraine and economic sanctions imposed by countries around the world in response have disrupted supplies of fuel, steel, and other materials necessary for construction. This has resulted in price escalation that threatens construction project budgets. Owners and contractors across the country are running to their… Continue reading War-fueled Construction Cost Increases May Warrant Look at Force Majeure
Tag: Construction Costs
Force Majeure Application to Increase in Price of Materials
Kent B. Scott | Babcock Scott & Babcock Is a substantial increase in the cost of materials covered by a force majeure provision? If so, what is the appropriate remedy? Short Answer In short, the answer is dependent on the terms of the specific contract. If a contract is a fixed price contract, an increase… Continue reading Force Majeure Application to Increase in Price of Materials
Material Cost Escalation: Who Bears the Cost Now? And, What Can Be Done to Address the Problem in the Future?
Sherman Botts | Stinson 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 many products, such as oil, asphalt, concrete and plywood. Those cost increases may have… Continue reading Material Cost Escalation: Who Bears the Cost Now? And, What Can Be Done to Address the Problem in the Future?
Construction Costs Must Be Reasonable
David Adelstein | Florida Construction Legal Updates When it comes to proving a construction cost, particularly a cost in dispute, the cost must be REASONABLE. Costs subject to claims must be reasonably incurred and the party incurring the costs must show the costs are reasonable. An example of the burden falling on the contractor to prove… Continue reading Construction Costs Must Be Reasonable
Increased Material Costs Leave Contractors Asking about Contract Protections
Jodie Clark McDougal | Davis Brown Law Firm We are hearing about a budget pinch from many homebuilder and general contractor clients tied to the substantial increases in the cost of lumber and other materials; HBA Iowa reports about an 80% increase in lumber costs since mid-April. As the cost of materials for build projects soars, builders… Continue reading Increased Material Costs Leave Contractors Asking about Contract Protections