Gas prices

Discussion in 'Irrigation' started by FIMCO-MEISTER, Feb 21, 2012.

  1. Irrigation Contractor

    Irrigation Contractor LawnSite Senior Member
    Messages: 424

    How many of you will end up tacking on a "Fuel Charge" to your service calls?

    When fuel hits $4.00, we will add a minimum $5.00 per trip charge. It is stated in our terms and conditions along with a "escalation clause" for materials which I also have stated in every contract / proposal.

    We bid a job back in 2010 and the contractor called back on May of 2011 wanting us to sign the contract and proceed with the work, which is when pipe prices and other items jumped. It allows us to back out of the job (contract was not signed anyway) and reprice the job.

    Yes the contractor had the option (since a contract was not signed) to go somewhere else, but I asked for the increase since they came to us a year earlier after getting burned by several other "cheaper" guys on past projects.

    The contractor and owners of the apartments complex actually were professional and understood our situation once we presented all the past and current numbers. It was a $11,000 increase from the original bid in materials which I refuse to eat that kind of money.

    Anyone else care to share their clauses or how your contracts are stated. I had my attorney help with ours. He said we needed a "trigger", we use 5% as the the increase. Basically, once our materials go over the 5% on our certified costs, we can invoke our clause.

    You run the chance of not getting the job at times, but who wants to loose that kind of money anyway.

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