{"id":903714,"date":"2024-12-12T14:19:04","date_gmt":"2024-12-12T21:19:04","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903714"},"modified":"2024-12-12T14:19:09","modified_gmt":"2024-12-12T21:19:09","slug":"price-escalation-clause-dispute-summary-judgment","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/price-escalation-clause-dispute-summary-judgment\/","title":{"rendered":"Put Up or Shut Up: Court Grants Summary Judgment for Steel Sub in Price Escalation Clause Dispute"},"content":{"rendered":"\n

John Mark Goodman | BuildSmart<\/a><\/p>\n\n\n\n

An Illinois federal court ruled in favor of steel subcontractor Nucor in its contract dispute with Direct Steel. The project involved the construction of pre-engineering metal buildings for the Army Corps of Engineers. The general contractor, Direct Steel, subcontracted with Nucor for the supply of steel materials. The contract included a \u201cMust Ship By Date\u201d of May 29, 2021, that was not a delivery deadline but was for price protection only. The provision provided as follows:<\/p>\n\n\n\n

\n

Any \u201cMust Ship By Date\u201d set forth in the Sales Documents is for purpose of price protection only. If the Products do not ship by the designated \u201cMust Ship By Date\u201d due to delays beyond [Nucor\u2019s] control, including without limitation, Purchaser [Direct Steel] Delays, (a) the price provided in the Sales Documents may be increased by [Nucor] for any additional costs incurred by [Nucor], with such price increases shall be implemented by Change Order \u2026 issued by Seller, which shall be binding on [Direct Steel], and (b) [Nucor] shall invoice [Direct Steel] for the full amount of the purchase price of such Products.<\/p>\n<\/blockquote>\n\n\n\n

Thus, under this provision, if the materials were not shipped by the specified date, Nucor would be entitled to a price escalation<\/a> to account for any increased costs.\u00a0When the materials were not shipped by the specified date, Nucor sought to recover its increased costs.\u00a0Direct Steel objected, and litigation ensured.<\/p>\n\n\n\n

The court sided with Nucor as a matter of law at the summary judgment, which it referred to as the \u201cput up or shut up moment,\u201d when the responding party must \u201ccome forward with the evidence it has.\u201d\u00a0Based on the evidence presented, the court found that Nucor was within its rights to request and was entitled to receive additional costs incurred because of delays beyond its control under the price protection clause.\u00a0The court rejected Direct Steel\u2019s defense that Nucor breached first by failing to deliver the materials by the \u201cMust Ship By Date\u201d since, under the contract, that date was only for price protection.\u00a0The court reserved the issue of damages and attorneys\u2019 fees for further proceedings.\u00a0A copy of the court\u2019s decision can be\u00a0found here<\/a>.<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

John Mark Goodman | BuildSmart An Illinois federal court ruled in favor of steel subcontractor Nucor in its contract dispute with Direct Steel. The project involved the construction of pre-engineering metal buildings for the Army Corps of Engineers. The general contractor, Direct Steel, subcontracted with Nucor for the supply of steel materials. The contract included a \u201cMust Ship… Continue reading Put Up or Shut Up: Court Grants Summary Judgment for Steel Sub in Price Escalation Clause Dispute<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,224,11601],"class_list":["post-903714","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-price-escalation","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nPut Up or Shut Up: Court Grants Summary Judgment for Steel Sub in Price Escalation Clause Dispute - 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