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Can you increase pricing due to Coronavirus?

New JerseyCoronavirus

I heard that due to the Coronavirus you can increase or add a percentage to your pricing. I was wondering if this was true? And if so, how much increase in percentage would be allowed?

1 reply

Aug 19, 2020

Generally speaking, any change to an executed construction contract constitutes a change order to which both parties must agree. If the pandemic has caused some particular hardship which prevents you from completing your promised performance, you would need to assert that the unforeseeable circumstance of COVID-19 has made fulfillment of your contract impossible, AKA force majeure. Many contracts contain such a clause. If your contract does not, you would need to present the other party with an explanation of why you are due additional compensation or need to suspend performance of the contract.

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