Spec Finish

Materials That doesn’t sound great for our sector, does it? So, should we adjust our workflow to match supply or are there other steps we can take to improve a stressful situation? THE PERFECT STORM CREATES MATERIALS SHORTAGES 26 www.thefis.org T HE construction industry is facing challenges on the availability of materials and labour. The increase in demand, extended lead times and the shortage of HGV drivers could have a significant impact on the timeframes and delivery costs of many projects. Reflecting this, the Construction Leadership Council (CLC) has called for fairer contracts and fluctuations. Most forms of construction contract have standard provisions for managing volatility without the need to make contract amendments. These provisions, such as fluctuations provisions in JCT and NEC 4 Secondary X1, provide a means of collaboratively sharing the risks associated with this volatility. In an open letter to the industry Andy Mitchell, Chair of the CLC, strongly urges those responsible for developing, agreeing and managing contracts to consider adopting these provisions. The contractual challenges created by lack of product availability and inability to access approved products are likely to mean design changes are necessary. Therefore, again, the CLC would encourage a collaborative approach to be taken to managing these risks. Commenting on the statement FIS Chief Executive, Iain McIlwee, said: “This is a welcome intervention from the CLC, FIS remains concerned that clients and main contractors are still focused on squeezing risks through the supply chain and we are getting to the point where fixed price contracts may not be tenable on certain works. “We continue to urge members to check the delay clauses before they sign a contract and look at the fluctuation clauses too, if you cannot negotiate a shared risk approach with your client, you need to seriously consider pricing in risk and ask yourself what