Galliford Try: 'contracts must be linked to material prices'

摘要

Galliford Try has negotiated with clients to vary the price of contracts depending on material prices in order to spread the risk of rising costs. Ken Gillespie, managing director of the firm's construction business, said that "volatile" materials prices were forcing the firm to negotiate with clients about flexible contracts. He said the decision to include material price variations in contracts was made "project by project", and he could not estimate the proportion of contracts amended in this way. He said that spiralling costs threatened to make lengthy projects dangerous: "Long-term contracts are too high risk".