The Board of Directors of the Associated General Contractors of America (AGC) recently adopted a resolution to seek “equitable adjustment of fixed-price contracts” to compensate contractors for the recent rise in steel prices. The organization says the crisis may result in job losses, bankruptcies, and public hazards.
Federal Highway Administration (FHWA) administrator Mary Peters told AGC that FHWA would allow states to include steel-price adjustment clauses in construction contracts for federal-aid highway projects.
Stephen E. Sandherr, ACG chief executive officer, urges others to follow in FHWA’s footsteps. “We hope other federal agencies, state and local entities, and private owners will take note and act appropriately,” Sandherr says. “Many contractors are already facing severe financial problems because of the enormous increases in steel prices and delays in deliveries that are jeopardizing completion of major projects.”
