(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?
(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.
Does the following have any legal relevance? Can an owner force a contractor not to include such language? If not what can an owner do? Can you enforce time limitations on something so broad or is below "Reserving your right" for later claims?
"We continue to experience fabrication and logistical COVID Pandemic related delays from
manufacturers due to limited stock of materials, limited manpower in fabrication shops, trucking
constraints and unprecedentedmaterial price escalations. This is an across the board with
direct vendor purchases and that of every Subcontractor."
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The limitation on what escalation of contractor prices may be acceptable is really contingent on the strength of their claim. I am assuming the language you do not want is being submitted for change orders? or is this in a contractor's original proposal/tender?
If on change orders, the original pricing may contain that language, but when you issue the final change order you will likely state that the change reflects "full accord and satisfaction language." You may simply refuse to issue changes absent agreement on this language.
If this is regarding the origial proposal/tender, then it really depends on your form of contract (lump sum, T&M, cost-plus, etc.), type of project (design-build, federal, other public, pivate, etc.) and the legal jurisdiction. Each of these contain the terms of whether there is a) entitlemet to a change for price escalations, and b) the means of measuring the appropriateness of the change.
Covid issues are not resolved yet in most states and courts, so there is little in the way of precedence. Even where there may be plain language regarding "pandemic" in say a Force Majeure (FM) event description, entitlement by the Contractor may be argued under what is known as a "change in law" clause. Here the argument is not FM which would be the pandemic, but instead the fact that government imposed new laws (restrictions) causing the supply chain issues to arise.
As with all changes, the first thing to establish is entitlement (do they have a right to escalation?) and the second thing is then quantum (how much are they entitled to?).
The limitation on what escalation of contractor prices may be acceptable is really contingent on the strength of their claim. I am assuming the language you do not want is being submitted for change orders? or is this in a contractor's original proposal/tender?
If on change orders, the original pricing may contain that language, but when you issue the final change order you will likely state that the change reflects "full accord and satisfaction language." You may simply refuse to issue changes absent agreement on this language.
If this is regarding the origial proposal/tender, then it really depends on your form of contract (lump sum, T&M, cost-plus, etc.), type of project (design-build, federal, other public, pivate, etc.) and the legal jurisdiction. Each of these contain the terms of whether there is a) entitlemet to a change for price escalations, and b) the means of measuring the appropriateness of the change.
Covid issues are not resolved yet in most states and courts, so there is little in the way of precedence. Even where there may be plain language regarding "pandemic" in say a Force Majeure (FM) event description, entitlement by the Contractor may be argued under what is known as a "change in law" clause. Here the argument is not FM which would be the pandemic, but instead the fact that government imposed new laws (restrictions) causing the supply chain issues to arise.
As with all changes, the first thing to establish is entitlement (do they have a right to escalation?) and the second thing is then quantum (how much are they entitled to?).
The limitation on what escalation of contractor prices may be acceptable is really contingent on the strength of their claim. I am assuming the language you do not want is being submitted for change orders? or is this in a contractor's original proposal/tender?
If on change orders, the original pricing may contain that language, but when you issue the final change order you will likely state that the change reflects "full accord and satisfaction language." You may simply refuse to issue changes absent agreement on this language.
If this is regarding the origial proposal/tender, then it really depends on your form of contract (lump sum, T&M, cost-plus, etc.), type of project (design-build, federal, other public, pivate, etc.) and the legal jurisdiction. Each of these contain the terms of whether there is a) entitlemet to a change for price escalations, and b) the means of measuring the appropriateness of the change.
Covid issues are not resolved yet in most states and courts, so there is little in the way of precedence. Even where there may be plain language regarding "pandemic" in say a Force Majeure (FM) event description, entitlement by the Contractor may be argued under what is known as a "change in law" clause. Here the argument is not FM which would be the pandemic, but instead the fact that government imposed new laws (restrictions) causing the supply chain issues to arise.
As with all changes, the first thing to establish is entitlement (do they have a right to escalation?) and the second thing is then quantum (how much are they entitled to?).
Does the following have any legal relevance? Yes I think thats it does
Can an owner force a contractor not to include such language? NO
If not what can an owner do? I think that an owner can request documentation that flows down the supply chain that provides proof in writting that there are delays to materials.
Can you enforce time limitations on something so broad or is below "Reserving your right" for later claims? NO there can be no time limitation the term reserving will capture the overall timeframe of the delay. But what an owner can do is ask the contrator to look for different suppliers and pass any additional costs back to the owner.
Email: PPadmin@planningplanet.com
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