Ontario Construction News staff writer
In response to the ongoing volatility in material and fuel pricing driven by global geopolitical developments, the Ontario Sewer and Watermain Construction Association (OSWCA) has prepared letters for members and local associations to share at their local tender practice meetings or with the local buyer.
“Recent international conflict and supply chain uncertainty have resulted in significant and unpredictable fluctuations in key construction inputs, particularly fuel and other high-volume materials,” the organization said in a statement. “These conditions present a growing challenge for contractors operating under fixed-price contracts, where such risks are typically not accounted for.”
Members can use a letter outlining the inflationary impacts on public infrastructure projects, and the associated risks to pricing, project delivery, and procurement outcomes; as well as or a letter specifying concerns regarding fuel price volatility, and recommending the adoption of fuel cost adjustment index mechanisms as a practical solution.
These letters are intended to support a more balanced approach to procurement, recognizing that current market conditions are externally driven and beyond the control of any contracting party.
For more information, contact kr***************@***ca.org.
