b'LEGAL COLUMNdue to changes in market conditions. Other items, such as heightened safety protocols, could be considered additions to the existing contract, resulting in those additional costs being recoverable through change orders. For new contracts, potential contract documents should also be reviewed by an experienced construction lawyer to see if express terms can be inserted to help guard against rising costs or inflation. Certain elements can be excluded from the fixed price (i.e., excavation, site work, site preparation, etc.) to allow the contractor to recover its actual costs in more uncertain areas. Further clauses can also be inserted to allow the price to be adjusted to account for increases in costs caused by government regulations orComp\x1bct Duplex Sx S\x11\x11ssttememComp\x1bct Dupleother items completely unforeseen and outside of the contractors control. For example, if a lumber tariff is increased byDes\x1c\x1bned for the government, that could potentially be passed along to the owner under the rightres\x1cdent\x1c\x13l \x13nd l\x1c\x1bht contract terms. Another option couldcommerc\x1c\x13l sew\x13\x1be be to limit the time in which the price\x13ppl\x1cc\x13t\x1cons\x0cremains valid, so if the project is delayed in commencing, increases in material and labour costs can be factored into the price prior to the start of the work. In a similar manner, cost increases resulting from delays caused by the owner related toLibertyPumps.comselecting materials or making other project decisions can potentially be charged backChilliwack Maple Ridge Port Coquitlam Surrey West Kelownato the owner under specific terms.44653 Yale Road West 23652 Dewdney Trunk Road 1391 Kebet Way 7815 King George Boulevard 1115 Stevens Road604.792.0866 604.467.1535 604.941.7318 604.502.9122 250.769.3101There are additional means outside of the contract documents that can createProudly Serving Southern British Columbiaadditional protections for contractors from this type of uncertainty. For example, pre-purchasing bulk materials can create certainty in pricing and allow the contractor to lock in those costs in advance of entering into a contract. Another option is to simply price projects higher to build in some protection against unexpected future cost increases.YOU KNOWAlthough there is no perfect solution,CONSTRUCTION.there are a number of ways for parties to protect themselves within fixed priceWE KNOWagreements in these uncertain times. WeCONSTRUCTIONrecommend that you consult with a legal professional when assessing the risks ofLAW.entering into any construction contract and when reviewing your options underWere here for you.existing agreements.www.pihl.caDisclaimer: The information provided in this article is merely for informational purposesNathan MacDermottB.Comm., J.D. Andrew PriorB.A. (HONS), LL.B.and is not legal advice. Parties should seekConstruction Law. Commercial Litigation. Construction Law. Real Estate Law. Commercial Litigation.independent legal advice prior to enteringnathan.macdermott@pihl.ca andrew.prior@pihl.cainto any contract.SICA CONSTRUCTION REVIEWFall 202129'