b'CRCA BulletinCRCAMembers BulletinRising cost of roofing materials and supply shortagesI t is no secret that the roofing industry, and more widely the construction industry, is being severelyContract Provisions affected by materials shortages and increased costs. There are several reasons for this:Further on this point, we suggest adding the following provisions Pandemic restrictions across Canada resulted in suppliers offloading supply to the comparativelyto any contract moving forward: open American market; Safety protocols at mills and factories reduced productivity, thereby reducing the supply of ma- A price acceleration clause: this provision allows for price terials produced;increases without change orders. If lumber or other materials The port of Montreal had significant labour issues resulting in a backlog of outbound supply;increase above a certain threshold, the contract is automati-Weather events in the USA also affected material distribution in the last year;cally amended to reflect the change.A pine beetle infestation in Alberta and British Columbia has not been resolved, contributing toA material availability provision: this provision stipulates shrinking supply; andthat the contractor makes no guarantee that materials will be A mass exodus to the suburbs from downtown cores across the country for new homes has cre- available as stated in the contract.ated unprecedented demand for the materials for both new builds and for the renovation ofA substitution of material provision: if the materials pro-existing homes.vided for in the contract are not available, reasonable substi-Communication is Keytutions can be made at the discretion of the parties involved. The reasons for the supply shortage and corresponding price increases are largely not issues that willThese provisions can be worded many different ways and are be resolved quicklymarket forces are in play that will keep this situation our reality for the near andeasily adaptable. medium term. Therefore, keeping open communication lines with the affected parties is extremely im- CRCA continues to work with our legal counsel, Cotney Con-portant. It would be wise for our members, in conjunction with legal counsel, to seek ways of avoidingstruction Law, to bring solutions for this issue to our members. If unnecessary litigation with those you are working with. This includes amending existing contracts, beef- you missed the April 29 webinar from Cotney on this topic, please ing up the delay provisions in contracts moving forward and, most of all, keeping an open mind whenreach out to us for more information or visit the CRCA Cotney Le-communicating with your subcontractors, general contractors, suppliers and owners as to what sort ofgal Library. Our next bulletin will deal with the issues faced by our solution you can come up with.members with existing contracts. 87 Bakersfield St., Toronto, Ontario, M3J 1Z4 Tel: 416-787-0649Fax: 416-787-0640 Email: service@crawfordroofing.ca www.crawfordroofing.caIndustrial Commercial Institutional Roofing Solutions -PMI Programs- Modified Bitumen- Built Up Systems -Metal Roof Systems- Waterproofing- Restoration-Emergency Services- Roof Anchors- Single Ply -Roof Top Decks- Sheet Metal- Inverted Committed to Safety, Quality & Service for over 37 years Services Fully Bonded & Insured 10ONTARIO ROOFING NEWSISSUE 2 2021 THE ONLY SOURCE FOR PROFESSIONAL ICI ROOFING CONTRACTORS IN ONTARIO ORN'