The Subbies' Toolbox Podcast

Episode 6 - Material Price Increases v Fixed Price Contracts

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Ep#6 – Material Price Increases v Fixed Price Contracts

Material price increases are back in the construction industry and subcontractors everywhere are starting to feel that familiar knot in their stomach again.

This week on The Subbies Toolbox Podcast, Michelle Cirson dives into the reality of fixed price contracts during periods of economic instability, fuel increases and supplier price hikes.

After years of dealing with the fallout from COVID-era pricing blowouts, many Aussie Subbies thought the worst was behind them. But suppliers are once again sending out increase notices, builders are pushing for certainty, and subcontractors are being left exposed under fixed price contracts that no longer stack up commercially.

In this episode, Michelle breaks down the practical and legal realities subcontractors need to understand right now, including:

  • What you can and can’t do under existing fixed price contracts
  • The risks of refusing work or walking away from a contract
  • How standing offer arrangements and schedule of rates contracts can trap subbies for years
  • The clauses you need to review immediately in your current contracts
  • Practical off-ramps and strategies that may help protect your business
  • How to structure future contracts to better manage volatile pricing
  • The role provisional sums, separable portions and variation clauses can play moving forward
  • The hidden risks of “good bloke” emails and casual conversations during uncertain times

    • Michelle also shares practical strategies subcontractors can use during negotiations to avoid getting locked into long-term deals that could quickly become commercially dangerous.

    If you’re an Aussie Subbie working in Commercial Construction, this episode is an important reminder that rushing into contracts during uncertain times can have long-term consequences for your cashflow, margins and business survival.

    Resources

    Tired of builders pushing you around? Arm yourself with the Subbies' Toolbox Membership 

    Want to negotiate better contract terms? Explore Negotiation School

    Get Free Checklists, Templates and guides here www.subbiestoolbox.com.au

    Get Your Fix on Social Media

    Follow Michelle on Linked In - HERE 

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    About the Host

    Michelle Cirson is construction lawyer, adjudicator and former commercial builder’s CA who now works exclusively with Australian subcontractors. She helps commercial subcontractors manage their builders’ contracts and get paid on time, without losing jobs and blowing up builder relationships. Michelle is the founder of The Subbies Toolbox Membership.

    If you want to understand how this system actually works and where subcontractors tend to get caught out, you’ll find more resources at www.subbiestoolbox.com.au

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    The Subbies' Toolbox PodcastBy Michelle Cirson