Price Acceleration

By Trent Cotney | Cotney Construction Law

With the uncertainties of the COVID-19 pandemic, ongoing protests and storm season, including a price acceleration provision in your contract may help protect you from unexpected increases in material prices. This provision is designed for use in the private sector because there may be prohibitions against price adjustment of this kind for public bid work:

If there is an increase in the actual cost of the materials charged to the Contractor in excess of 5% subsequent to the execution of this Agreement, the price set forth in this Agreement shall be increased without the need for a written change order or amendment to the contract to reflect the price increase and additional direct cost to the Contractor. Contractor will submit written documentation of the increased charges to the Customer upon request.

Date : Jan. 01, 0001