Commodities price clause

[tyha]

I have been awarded a shell building that I priced about a month and a half ago. i received the contract about 2 weeks later after discussing the price with the gc. I have yet to sign and return it. The reason is I have about $25000 wire budget that was marked and priced correctly when I priced the job. that $25,000 price is about to be met by the actual cost and we won't be pulling wire there for about 2 months. How should I approach the contractor about this. I didn't write a material price clause in my proposal but i have yet to sign the contract.

 

[celtic]

Unless the GC is willing to accept "new terms" from you...you might be SOL.

Has the job (for you ) started?
Meaning, Have you done any work on-site?

 

[tyha]

no. no work has began. the only thing I have done so far is open a project account at the supply house and give them submittals for gear and fixtures.

 

[dduffee260]

We learned to put clauses in our proposals. Did you actually fax the GC a written proposal? We have the same problem, only we bought all of our wire both this year and last year before it went up. I wished I had built a warehouse and bought several semi loads of wire to stock up.We are still with several pallets of 12/2 NM we gave $42 a roll for last year.
If you want to do the job I would show the GC your wire costs, then show them the increase amounts. Ask if the owner would at least pay the difference so you would not take a loss. If they say no, who knows, maybe wire will go down some by the time you pull wire. Then when asked about change orders, I would try to make back some of the loss with those.

 

[emahler]

ask your supply house if they will work with you. they may be willing to sell you the wire today, deliver it in a month and bill you in two.

it wouldn't be the 1st time.