What steps has your company taken to address increasing materials prices and supply chain shortage challenges? Three NRCA members share their answers.
We have taken a few steps. On the front end, we are adding escalation and schedule language to our proposals and pending contracts. We were able to implement this from ideas and language presented through NRCA’s website and webinars, as well as NRCA legal counsel Trent Cotney’s team. For our work already underway, it has been mainly a lot of extra communication with our vendors and customers to make sure everyone is aware of any issues as soon as possible and how we will work together to solve the issues.
—David Hesse, Kalkreuth Roofing & Sheet Metal Inc., Frederick, Md.
For work we are bidding/pursuing, B&M Roofing is including a great deal of added language to our proposals and contracts to address the increasing material prices and supply chain issues. This reduces risk, as well as begins the conversation with the client surrounding price increases and supply chain problems. Many examples of this language can be found on NRCA’s website for contractors to readily access. For projects that are already under contract, we are placing orders as soon as possible and begin discussing the challenges related to pricing and availability as soon as possible. In many cases, systems have had to be altered or changed to meet the needs on projects.
—Scott Kawulok, B&M Roofing of Colorado Inc., Frederick, Colo.
We have tried to increase all our material pricing on a weekly or even daily basis and in some instances have been told by manufacturers to potentially add a few percent to accommodate price shifts between when the order is placed and when the order is received. We obviously do this with caution to always bid the jobs fairly and within reasonable parameters. We also have increased our communication with suppliers and manufacturers. We are in constant communication, speaking daily if not several times per day. Overall, our project manager and purchasing department have done a tremendous job getting us the material we need by the time the job starts, but this has not been easy.
—Cheryl McGlothlin Chapman, Empire Roofing, Fort Worth, Texas
