Price adjustment clauses can help curtail unforeseen costs

Description

Abstract: Construction materials prices are erratic and largely unpredictable, but price adjustment clauses in a contract are one way to prevent, or at least mitigate, such sticky situations. These clauses identify specific materials at risk for price increases and set an effective date from which to measure price changes that trigger an adjustment to the contract amount for materials. This article explains how they can help both contractors and owners save time, money and risk.