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Inflation- extra costs, is it contractors burden?

  • 06-09-2017 3:39pm
    #1
    MizMix
    Registered Users, Registered Users 2 Posts: 313 ✭✭


    Obviously there has been huge inflation in recent months and the past year. Our builder is under pressure- we agreed to him sourcing an equivalent spec roof (non kingspan) from UK. It's the exact same- no issue. He keeps mentioning costs - he advance bought a lot of stuff but there's still a lot else. Can he request additional from us or is it solely his responsibility to get everything done within budget? What if that's not possible? Can he use the contingency or is this just for extra's we ask for?


Comments

  • #2
    DOCARCH
    Moderators, Home & Garden Moderators, Science, Health & Environment Moderators Posts: 18,452 Mod ✭✭✭✭DOCARCH


    Have you a contract in place?

    If you do have a contract in place, what does it say?


  • #3
    MizMix
    Registered Users, Registered Users 2 Posts: 313 ✭✭MizMix


    Sorry missed the response. Yes the contract does cover this off, I just wasn't sure what might happen in reality- we've heard of stand offs between contractors and client before. Anyway we met and everything is ok - he's definitely feeling the pressure but I'm sure all contractors are,


  • #4
    ustari
    Registered Users, Registered Users 2 Posts: 504 ✭✭✭ustari


    I think it is a case of tough luck here if you have a contract. Not your problem that costs may have risen.


  • #5
    DOCARCH
    Moderators, Home & Garden Moderators, Science, Health & Environment Moderators Posts: 18,452 Mod ✭✭✭✭DOCARCH


    MizMix wrote: »
    Sorry missed the response. Yes the contract does cover this off...

    In what way?

    What form of contract do you have?

    The standard (RIAI) form of contract has a clause entitling/allowing the contractor claim for wage and material prices increases.

    That's of course unless you have specifically agreed (in advance) to exclude/delete that particular clause.


  • #6
    BryanF
    Moderators, Home & Garden Moderators Posts: 10,146 Mod ✭✭✭✭BryanF


    ustari wrote: »
    I think it is a case of tough luck here if you have a contract. Not your problem that costs may have risen.

    That attitude is ok until the contractor goes into liquidation..

    the insulation uplifts experienced in recent months are beyond reasonable and fair costs increases for example.


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  • #7
    MizMix
    Registered Users, Registered Users 2 Posts: 313 ✭✭MizMix


    We've met with the contractor and luckily he purchased a lot of materials in advance- as soon as he was appointed. At the minute he hasn't asked for extra but he has asked to substitute certain things e.g. kingspan roof.

    I honestly can't remember off the top of my head what the clause was regarding pay increases (I do remember variations wouldn't be accepted) but we have agreed to certain substitutions e.g. instead of kingspan roofing he used another supplier in the UK which is the same (same u values, looks the same). It has caused some delays but so far it's fine. He has a solid crew who aren't interested in commuting hours to dublin for better pay....but I guess we'll have to see how it goes (and I need to revisit the contract) but he's reasonable but we also don't expect him to loose money on this either. At the minute (and with prob only two months to go) everything is ok.


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