Association issues a price-adjustment amendment

The Associated General Contractors of America (AGC) recently issued a price-adjustment amendment to its fixed-price construction contract, AGC Document No. 200, which will help those in the construction industry that are struggling due to increased prices of steel and other commodities.

The Potentially Time and Price-Impacted Materials amendment will provide owners and contractors with methods for establishing the market price of a construction commodity and the ways to calculate an adjustment in the pricing for that commodity should it experience a significant increase or decrease in price. The amendment also addresses contract time extensions in the event of a project delay caused by scarcity or delivery delay.