What construction contract law regulations exists regarding today’s high increases of costs?
Today, energy prices and material prices are increasing rapidly. It is important to know how this is regulated in construction law, irrespectively if you are the employer or the contractor. There is a provision in both AB04 and ABT06, stipulating that the agreed price may be changed if there is a change in costs due to governmental decision, war, or any other crisis with similar effect. In order to be changed, the cost needs to be necessary for the Total Works and the price increase relating to material is abnormal. The price may only be changed if the cost increase was unforeseeable and have substantially affected the total contract sum.
The clause is to be found in Chapter 6 paragraph 3 AB04 or ABT06. The clause is not easily interpreted, but RosholmDell may assist with this in specific cases. Contact Mari Jemt, firstname.lastname@example.org, for legal advice.