With wide-reaching tariffs imposed by Washington last week, contractors are looking to include clauses in their contracts that protect against price escalation and price uncertainty.
To provide support to members and contractors nationwide, The National Tile Contractors Association (NTCA) has asked Philip J. Siegel, Esq. of the Atlanta-based construction law firm Hendrick, Phillips, Salzman & Siegel, P.C., to draft protective language that contractors can use in their contracts going forward.
Option 1:
The imposition of tariffs on construction materials is presently unknown. Construction products and energy costs are sometimes subject to unusual price volatility due to conditions that are beyond the control of the Subcontractor. If a tariff is imposed on materials to be used in this installation or there is a substantial increase in these or other products or energy costs between the date of this Agreement and the time when the Work is performed, the Subcontract Price shall be increased to reflect the additional cost to the Subcontractor, upon submittal of written documentation and advance notice to Contractor. Additionally, Subcontractor shall be entitled to an extension of time for delays beyond the control of Subcontractor, including delays in delivery of materials.
Option 2: (Fill in the percentage if you plan to use this option.)
The imposition of tariffs on construction materials is presently unknown. Construction products and energy costs are sometimes subject to price volatility due to conditions beyond the control of the Subcontractor, including tariffs. If there is an increase of more than ___% in the cost of any such material or energy costs between the date of this Agreement and the time when the Work is performed, the Subcontract Price shall be increased to reflect the additional cost to the Subcontractor, upon submittal of written documentation and advance notice to Contractor. Additionally, Subcontractor shall be entitled to an extension of time for delays beyond the control of Subcontractor, including delays in delivery of materials.
For more information or questions, contact: Philip J. Siegel, Esq. Hendrick, Phillips, Salzman & Siegel, P.C. at [email protected], visit www.hpsslaw.com or phone 404.522.1410.
Lesley Goddin has been writing and journaling since her first diary at age 11. Her journey has taken her through a career in publishing and publicity, landing her the editor position of TileLetter and its special publications in 2006. Her goal is to educate, inspire, recognize and encourage those in the tile industry -- especially the tile and stone contractor.
