The Associated General Contractors of America adopted a resolution at its annual convention in March seeking “equitable adjustment of fixed-price contracts to compensate contractors for the unprecedented rise in steel prices. AGC was prompted by especially severe increases and delivery delays in steel products that had forced contractors to postpone work on highways and bridges.
The group also reported delays in getting pipe for fire sprinklers and other products. “We don't know how high the prices will go or how long the shortages will last, but it is apparent that some contractors will not be able to absorb these unbudgeted cost increases or payment delays,” warned Ken Simonson, AGC's chief economist.