National Roofing Legal Resource Center

Contract Provisions – Material Price Volatility (Members Only)

The National Roofing Legal Resource Center is pleased to provide you with provisions to include in correspondence, proposals and contracts to deal with volatile pricing of roofing, isocyanurate and steel products.

The construction industry is experiencing escalating prices and some material availability problems relating to steel, isocyanurate insulation and asphalt-based roofing products. The availability and pricing of, steel, isocyanurate insulation and some roofing products is subject to sudden significant changes beyond the control of construction contractors. Because of the difficulty in obtaining firm prices for steel isocyanurate and petroleum-based products from suppliers, Roofing Contractor cannot provide fixed, firm prices for steel products for future projects. If there is an increase in the price of isocyanurate, steel or petroleum-based products charged to Roofing Contractor subsequent to making this proposal/contract, the price set forth in this proposal/contract shall be increased to reflect the additional cost to Roofing Contractor upon Roofing Contractor's submittal of written documentation of the increased charges.



Due to escalating prices and volatility in the pricing of steel, isocyanurate, and petroleum-based construction products, the price set forth in this proposal/contract applies only to orders that are ordered and paid for within _______ days of the date of this proposal/contract. All other orders shall be subject to change based upon changes in the price of steel, isocyanurate insulation, and asphalt roofing products charged to Roofing Contractor.



Roofing Contractor shall perform the work described at the price quoted subject to the following adjustment: in the event, that the price of any materials to be used in this work should increase by ______ percent or greater from the price at which the material was available to Roofing Contractor at the time of submission of this proposal/contract, then the price quote shall be increased to reflect the additional cost of the material to Roofing Contractor.



Due to the price volatility regarding steel, isocyanurate and asphalt products, the price quoted in this proposal is valid only for orders placed and paid for within the next ______ days. If there is an increase in the price paid by Roofing Contractor for steel, isocyanurate or asphalt products, the amount of this proposal/contract shall be similarly increased to reflect the increased costs to obtain the materials.



Roofing Contractor shall perform the work described herein at the price quoted; provided, that in the event the price to the roofing contractor for any materials to be used in this work shall increase by ________ percent or greater than the price relied upon by Roofing Contractor in preparing and submitting the price quote, then the owner/general contractor agrees that the price quote shall be increased to this same extent.



Asphalt products, isocyanurate insulation, steel products and other roofing products are sometimes subject to unusual and severe price volatility and availability due to political and other conditions that are beyond the control of Roofing Contractor. If there is a substantial increase in these or other roofing products between the date of this proposal and the time when the work is to be performed, the amount of this proposal/contract may be increased to reflect the additional cost to obtain the materials, upon advance notice and submittal of written documentation to Customer.



10/24/2018



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