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 construction contracts allocate liability, when force majeure or change orders may provide relief, and best practices for drafting a price escalation clause in your subsequent construction agreement.
- The 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 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 material price escalation?
- What should a properly drafted price escalation clause include?
George W. (Trey) Tate, III
Mr. Tate focuses his practice on both contract preparation and negotiation and complex construction litigation. His... | Read More
Mr. Tate focuses his practice on both contract preparation and negotiation and complex construction litigation. His work with complex construction litigation has a special emphasis on delay claims, construction defect claims, payment disputes, lien and bond claims, and bid protests for his construction clients. Mr. Tate handles construction contract negotiation and preparation on projects of all scale and type, from single family luxury homes and multifamily projects to horizontal and vertical projects. Having negotiated the contracts for billions of dollars worth of projects, he is adept at advising clients on all aspects of contract negotiation and drafting, including numerous different delivery methods, and regularly advises clients on myriad issues that arise in active construction projects on a daily basis to help keep projects running smoothly and out of litigation.Close
Norton Rose Fulbright US
Mr. Walsh specializes in front end construction, project development and dispute resolution. He represents owners,... | Read More
Mr. Walsh specializes in front end construction, project development and dispute resolution. He represents owners, developers, contractors and design professionals in construction projects, including, energy and power plant facilities, commercial and industrial manufacturing plants, infrastructure support, warehouses, and storage facilities, hotel, condominium and multifamily residential housing developments, healthcare facilities, entertainment complexes, and shopping centers. Mr. Walsh routinely provides representation in negotiation and drafting of development, design, engineering, construction, and related agreements including advice on partnering and integrated project delivery contracts, trade labor and project labor matters, insurance, IP protection, land use and zoning, environmental and building code regulations, professional licensing issues, and accessibility laws.Close