Managing Resource Cost Fluctuations in an Uncertain Environment

As the global economy struggles to adapt to turbulent supply and demand conditions, one of the noticeable ripple effects felt by the construction industry, whether through project planning, procurement, contract management or disputes, is resource cost fluctuations.

Estimates for construction work are being disrupted by these resource cost fluctuations as they increasingly impact expected project cost outcomes. This new norm is causing uncertainty which is leading to overall project objectives being negatively impacted.

Osler’s Construction & Infrastructure Chair, Richard Wong and special guest Arif Ghaffur, Managing Editor of the Construction Economist (a publication of the Canadian Institute of Quantity Surveyors), discuss the topic, moderated by Osler partner, Andrew Wong.

Our panel explores the causes, impacts, consequences, behaviours, and the roles that we can play in managing resource cost fluctuations. We also focus on various contractual responses to resource cost fluctuations seen in the Canadian market to date, with actual examples and a discussion of practical commercial considerations when negotiating price adjustment clauses.