Menu
Home>Levelset Community>Legal Help>how can we protect ourselves in a contract, if huge inflation and rising costs for labor/ materials come?

how can we protect ourselves in a contract, if huge inflation and rising costs for labor/ materials come?

GeorgiaConstruction Contract

When we sign a contract, we agree to do the work for the prices listed.. If big inflation comes, and prices for labor and materials increase drastically, it will be impossible to continue the work without raising our prices, but we are legally obligated to do it for the now outdated low prices, that will devastate us financially and force us into bankruptcy. So how can we experience protection for raising prices, if/when big inflation comes? We see the signs of it coming soon, as it has happened before in the last recession Without going bankrupt preferably

1 reply

Feb 19, 2021

You can draft contracts with fluating pricing. You may have to plan for pushback from potential customers. If you have current countracts with problematic pricing, then you need to look at whether you can unilaterally amend the contract, if the customer has to agree to the amendment, or if you can terminate and renegotiate the contract.  

0 people found this helpful
Helpful