Price Escalation Clauses in Construction Contracts: Mitigating Risks for Owners, Contractors, and Subcontractors
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will discuss how the rapidly rising price increases for materials and supplies affect the construction industry and what steps all stakeholders can take to mitigate risks from those changes. The panel will address how specific types of construction contracts allocate liability, when force majeure or change orders may provide relief, and best practices on drafting a price escalation clause in your next construction agreement.
- Current state of price escalation
- Types of construction contracts and price liability
- Guaranteed maximum
- Force majeure
- Type of relief
- Change orders
- Price escalation clauses
The panel will review these and other key issues:
- How does the choice of type of construction agreement affect the liability of owners versus contractors and subcontractors?
- When can a force majeure clause be used when materials have increased significantly in price since beginning the project?
- Would a change order provide enough equitable relief in the event of material price escalation?
- What should a properly drafted price escalation clause include?
V. James Dickson
Adams and Reese
Mr. Dickson focuses his practice on construction law, environmental law, development issues and commercial business... | Read More
Mr. Dickson focuses his practice on construction law, environmental law, development issues and commercial business advice. He is Board Certified in Construction Law by the Florida Bar. For more than 25 years, he has served as an Adjunct Professor at Stetson Law School, where he teaches a course on Environmental Hazards of Real Property. In construction matters, Mr. Dickson represents owners, contractors, subcontractors and suppliers in all aspects of construction law, including bidding, contract preparation and negotiation, surety bonds, claim resolution, ADA claims and litigation of construction defect claims and monetary disputes. He routinely handles matters in mediation, arbitration and litigation. He also negotiates and drafts complex construction contracts.Close
Jeffrey M. Reichard
Mr. Reichard practices primarily in the areas of construction, commercial litigation and intellectual property. He... | Read More
Mr. Reichard practices primarily in the areas of construction, commercial litigation and intellectual property. He regularly represents owners, general contractors, subcontractors, suppliers, design professionals and lenders in contract negotiations, dispute avoidance and dispute resolution regarding various construction issues, including delays, inefficiencies, defects, liens, bonds and related matters. Mr. Reichard is a frequent speaker and author, with published articles and presentations covering an array of construction and intellectual property topics.Close