Price increases in the construction industry

Are you involved in a construction project and facing unexpected price increases? Rising material costs and increasing labor costs make it increasingly difficult to keep project costs within agreed budgets. Who is responsible for these increases, and who pays for the costs? Are the agreements in your contract sufficiently clear?

Important aspects of price increases in construction

1. Fixed Contract SumWith a fixed contract sum, the contractor usually bears the risk of price increases, unless there is a specific clause regulating otherwise. Without such a clause, the agreed price remains binding.
2. Price review clauseSome contracts contain a price review clause, which allows the contractor to pass on price increases to the client. This clause is especially important in long-term projects, where market developments such as inflation and rising raw material prices can have a major impact.
3. Directional basisWith work on a directional basis, the actual costs, including any price increases, are passed on to the client. This means that the client bears the risk for rising prices. Clear agreements about this can prevent unnecessary discussions and legal conflicts.

Need legal advice on price increases in construction?

Our construction lawyers will help you analyze your contract and determine your legal position in case of price increases in construction. Do you want to know what your rights are and whether you can recover or should bear costs? Then contact us for a consultation.