Construction Web guide: infrastructure, buildings, engineering, architectureHowrey
Web directory of federal, state, local governments; courts; legislatures; Congress; trade groups; businesses; colleges; libraries; publications; international agencies affecting construction, engineering, architecture, infrastructure Web directory of resources on licensing, registration, building codes, new projects, bidding, financing, environment, specifications, e-commerce, laws, regulations, insurance, bonds, jobs, safety, best practices, engineering, architecture, training Web guide to dictionaries; encyclopedias; reference materials; business and international travel resources; people finders; telephone numbers; Web addresses; postal codes; currency, metric converters; time zones; calendars; travel; news
More than 500 online news and legal reports on construction law, including claims, payment remedies, damages, government contracting, insurance, building codes, licensing, technology, arbitration, engineering, architecture, infrastructure
Site Search Site Map Registration About Howrey ConstructionWebLinks Contact Us

AIA Form
Declaration of Default Not Required to Trigger Surety’s Liability on Performance Bond, Court Holds

AIA, EJCDC, Consensus
Key Construction Insurance Issues – How 3 Form Contracts Address Them

Unless Collusion
Insurer Bound by Results of Insured’s Trial or Finding that Settlement Was Reasonable, Washington Supreme Court Holds

For Arbitrator to Decide
Statute of Limitations Is No Bar to Compelling Arbitration, California Supreme Court Holds

Courts Intervene
Arbitration Decisions: Finality May Not Always Be Best

Contract So Provides
Court Distinguishes Duty to Defend from Duty to Indemnify, Requires Non-Negligent Supplier to Pay for Defense

'Deplorable' and 'Irrational'
Government Acted in Bad Faith in Default Termination; Court Awards $17 Million in Damages to Contractor

Unexpected Interpretations
Standard Form Contracts – Choice of Law Can Change Everything

Previous Issues

Construction Industry News

New York Provides Some Relief for Steel Price Increases


January 17, 2005



Howrey LLP

Buried in New York's recent, long-delayed state budget package is a provision allowing conditional relief to contractors suffering price increases for steel products.

Contracts based on bids submitted before April 15, 2004, involving steel materials purchased after December 1, 2003, may be adjusted upon a determination by the department, board, agency or public benefit corporation which awarded the contract that there has been an increase in the cost of steel materials of more than 5 percent since the time of award. See, Part S, Section 2 of the budget legislation at Chapter 56 of the Laws of 2004; S. 6056, A. 9556.

The determination is to be made based on available evidence, such as "an appropriate nationally recognized economic index published by the United States department of labor or other appropriate organization."

Contract adjustments are subject to the approval by the state controller's office. Prices also are subject to downward adjustment in the event of a subsequent de-escalation of prices to a level lower than the original bid price.

Requests for adjustments are to be made in writing with documentary evidence and will be subject to public inspection. Labor costs, overhead and profit charges are not to be altered as part of such price adjustments.


If you would like to receive legal reports and updates more quickly, by e-mail, click here and fill out the mailing list form. If you would like to subscribe to our RSS feeds or learn more about RSS, click here.


For more information about the issues covered in this report, please contact Paul Berning in our San Francisco office at 415-848-4996 or at paulberning@howrey.com or contact your Howrey attorney. For more information about Howrey's Construction Practice Group, click here.



Send This Report to a Colleague

Tools to Share, Organize, Comment on Information


©2005 Howrey LLP

More than 500 online news and legal reports on construction law, including claims, payment remedies, damages, government contracting, insurance, building codes, licensing, technology, arbitration, engineering, architecture, infrastructure

© Howrey LLP
All rights reserved.
Legal notices, and terms and conditions.

Site Search Site Map Registration About Howrey ConstructionWebLinks Contact Us