TORONTO – The Ontario Sewer and Watermain Construction Association (OSWCA) has prepared letters for members and local associations that respond to the ongoing volatility in material and fuel pricing, which are a direct result of constantly geopolitical developments.
Associations are being encouraged to share the letters at their local tender practice meetings and/or with the local buyer.
“Recent international conflict and supply chain uncertainty have resulted in significant and unpredictable fluctuations in key construction inputs, particularly fuel and other high-volume materials,” the association states. “These conditions present a growing challenge for contractors operating under fixed-price contracts, where such risks are typically not accounted for.”
The two letters are as follows:
The intent behind the letters it to illustrate a more balanced approach is needed currently for procurement because current market conditions are “externally driven and beyond the control of any contracting party.”
OSWCA does note it is important to note these letters come from the member’s local association.
Please reach out to OSWCA should any assistance be needed. Local association members are also being asked to share if they are finding success on either escalation clauses or fuel indexes.
