There are certain realities the owner must acknowledge regarding material price increases, and it may be necessary and beneficial for the contractor to be proactive with the owner. It may be possible for a contractor to renegotiate a contract to accommodate price increases or industry shortages. In some situations, it may be in the best interest of the owner to renegotiate. For example, if the duration of the project as well as the price of the project increases significantly, the contractor may be put at financial risk. In this situation, the owner could make certain allowances for increases rather than risk the entire project.

<182M>