Getting ready <hopefully> to sign a contract on a job. The not so long ago price increases have gotten me skiddish about my contract because it has no material price increase clause.
For instance if studs go up from $2.40 to $3.40 that could wipe out a significant amount of profit.
Any recommendations.
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If you haven't signed the contract yet, then insert a clause addressing this (and other unforseeable and uncontrollable) potential situation.
That was my plan Tim. Was looking for what sort of clause others might use
hopefully some more busines owners will chime in
but anyway,
assune it is a fixed price contract
this can get complicated. what if prices go down?
how are u going to track things
should u be using a T&M type contract.
as an HO if u dropped that on me at the last minute I'd get suspicious.
don't know how u and the customer got together, but what the customer thinks (s)he was going to pay, you're saying, expect it to go up, in addition to any unforseen if this is a remodel. customer to take all the risk in a fixed price contract? I'd say by by.
fixed price risk on the contractor, and the reward for doing it less cost
T&M, cost, risk and the reward of saving on the contractee.
sounds like u want all the risk on the customer, if u can do that, suspect lot of folks here will want to know how u did it.
bobl Volo, non valeo
Ran several jobs in a row last year that were 'fixed price' but had lumber costs as an allowance. They were accurately estimated at today's cost, but if anything went up or down that went through to the customer. The company went to that model after the Canadian lumber tariff thing that happened mid-2001 (?). It was easy to track, because all costs in certain carpentry cost codes were reconciled to the owner using a change order. Owners agreed that they would prefer that model to having the company add a big pad to cover the unforeseen.
but if anything went up or down that went through to the customer
fair to both parties, win-win
good business practice IMObobl Volo, non valeo