Stay Prepared with Cohen Seglias’ Material Cost Escalation Package

June 9, 2021

Every day, the construction attorneys at Cohen Seglias are approached by clients as to how to address the current crisis due to the significant fluctuation in pricing in construction materials, equipment, and energy. Whether the product in question is steel, copper, glass or lumber, we have seen prices rise since the re-opening of the economy with some commodities hitting a 100% price increase according to some indices. Who is responsible for the burden of the price increases? Unfortunately, like with COVID-19, owners, construction managers, contractors, and subcontractors are all arriving at different answers. 

The Construction Contracts & Risk Management Group at Cohen Seglias has prepared sample notice letters for use on jobs where construction has or is about to resume under pre-existing contracts. We are also providing you with language to add to your change orders and monthly releases. Also, we have included sample language to place in your contracts and proposals to help protect you in the event of a future price escalation. These are extremely difficult clauses to negotiate. 

Understand that these forms may need to be revised to fit your particular circumstances. The attorneys of Cohen Seglias stand ready to provide you with assistance, when needed.

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I am rewatching Steve Whitmer's presentation from MEP Innovation Conference on Rising Tide of Model Changes for 3rd time today. Too many notes for one pass. Great ideas on progressive coordination, VE vs BIM Costs, and cost impacts during phases. https://www.mcaaevents.org/innovative-technologies-conference/live/

If insanity is doing the same thing and expecting different results, false hope is doing a different thing and expecting better results right away.

Expecting immediate improvement is a barrier to progress. Two steps forward often start with a step back.

http://go.ted.com/adamgrant

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