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: Force Majeure
Include Contract Clauses for Protection Against Ever-Evolving Construction Challenges
Michael Henry and Kevin J. Riexinger | Construction Executive The first quarter of 2022 provided a valuable glimpse into some of the major issues the construction industry can expect to continue impacting jobsites for the rest of the year. Early in the pandemic, construction was not immune from the shut-downs that swept across market sectors.… Continue reading Include Contract Clauses for Protection Against Ever-Evolving Construction Challenges
Is Your Contract “Mission Essential?” Recovering Costs for Performing During a Force Majeure Event Under Federal Regulations
Joneis M. Phan and Sarah K. Bloom | ConsensusDocs Federal contractors have faced unprecedented challenges performing during the COVID-19 pandemic. Additional costs have included delays and inefficiencies, site closures, quarantines, unavailability of supplies and materials, and full shutdowns of subcontractor operations. For contractors performing under fixed price contracts, the cost impact of COVID-19 was likely… Continue reading Is Your Contract “Mission Essential?” Recovering Costs for Performing During a Force Majeure Event Under Federal Regulations
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?