I hope you are all having a great summer out there as what we hear is that the industry is busy and from that, the OGCA is extremely active on reviewing contract conditions and advising members on a number of issues.
The steel tariff dispute has had a very debilitating impact on many projects, especially those already underway or that have recently closed. These cost escalations are far beyond any reasonable or normal expectation that would have been covered under a normal contract. In fact, what is happening is abnormal as members receive letters from suppliers of fencing, metal studding, to structural steel, implementing increases of 25% – 30%.
The OGCA has published a Bulletin on actions that members need to be taking to protect themselves. We are stressing to owners that they need to be reasonable as this is not a pass-on cost with which they don’t have to assist us. Frankly, it doesn’t matter what type of clauses are in a contract. If suppliers or trades refuse to supply or turn up, there is little any General can do. It is therefore essential that consultants, owners and contractors work together to address this issue and find a reasonable accommodation to ensure that projects continue. It is simply not acceptable to say, “not my problem you deal with it!”
Click here to read the rest of President Clive Thurston's Report.