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When a building material is late or its price changes, do not react by ordering an unapproved substitute or accepting a revised invoice verbally. First document the supplier’s position, then measure the schedule effect, give the contract notices on time, and agree any substitution or price adjustment in writing. The signed contract and the law governing it decide who ultimately carries the cost and delay risk.
1. Confirm exactly what changed
Call the supplier, but require a written answer. Ask for the affected product, quantity, purchase-order reference, original promised date, current estimated delivery date, reason for the change, and whether the quoted price is still valid. Also ask whether the order can be cancelled, partially shipped, expedited, or replaced with an equivalent product.
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Request evidence rather than a general statement such as “global shortages.” A manufacturer notice, allocation email, revised order confirmation, freight notice, or updated price sheet helps establish what happened and when. Record the name and role of each person you speak with, the date and time, and any conditions attached to the revised date or price.
Information to obtain from the supplier
- Exact item description, grade, finish, dimensions and quantity affected.
- Original committed date and the latest realistic delivery window.
- Cause of the delay or price change and whether the cause is temporary.
- Whether the original quotation remains binding, and until what date.
- Expedite, split-delivery, cancellation, refund and substitution options.
- New freight, storage, handling or minimum-order charges.
Do not treat an estimate as a guarantee. Put the uncertainty in your project records and set a date for the next supplier update.
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2. Map the real schedule impact
A late item does not automatically delay the entire project. Identify the activities that cannot start or finish without it, including inspections, testing, commissioning, dependent trades and handover. Ask the superintendent, builder or scheduler to show the affected activities on the programme and identify whether the item is on the critical path.
Check for work that can continue
- Can foundations, framing, rough-in, preparation or other unaffected work proceed?
- Can crews be moved to another area or another trade without creating rework?
- Can an inspection be advanced, or can several inspections be combined?
- Would a partial shipment permit installation of the first completed area?
- Will resequencing create overtime, remobilisation, storage or supervision costs?
Update the baseline programme, the current forecast and the critical-path calculation. Record the original planned date, the event date, each revised forecast, and the actual delivery date when it occurs. This separates a supplier delay that affects completion from a non-critical delay absorbed by available float.
3. Give contractual notice before a deadline expires
Send a dated notice to every person the contract identifies: the owner, builder, architect, contract administrator or government representative. Describe the material, the supplier event, the dates, the likely number of affected days, and the mitigation you are attempting. State that the assessment is preliminary if the supplier has not provided a firm date.
Use the contract’s required delivery method and notice period. A telephone call or informal email may not preserve a claim if the agreement requires a formal notice, a specified address, or notice within a fixed number of days. Ask the contract administrator to confirm receipt.
Preserve the evidence
- Signed contract, addenda, drawings, specifications and allowances.
- Purchase orders, quotations, bid assumptions and approved procurement schedules.
- Supplier correspondence, manufacturer notices and revised quotations.
- Invoices, freight offers, storage bills, labour records and idle-time records.
- Daily reports, photographs, delivery tickets, meeting minutes and programme revisions.
- Records of mitigation, rejected alternatives, approvals and change-order discussions.
Keep a daily record even when no visible progress is possible. Note labour and equipment present, areas available for work, attempted mitigations and the reason work could not proceed. Contemporaneous records are more persuasive than a reconstruction months later.
4. Read the contract’s price and delay clauses
The agreement controls the commercial result, subject to the governing law. Look for these provisions before promising a price or completion date.
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Fixed-price language
A fixed price may place ordinary cost overruns on the contractor, but the wording matters. Check whether the price is fixed only for identified quantities and specifications, whether taxes or freight are excluded, and whether an owner-directed change is priced separately.
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Escalation or economic-price-adjustment provisions
An economic-price-adjustment clause may allow a change tied to a named index, a supplier invoice, a threshold or a defined base date. Confirm which materials qualify, the notice deadline, documentation required, caps or sharing percentages, and whether a decrease must also be passed through as a credit. Federal Highway Administration guidance notes that price-adjustment provisions transfer part of volatility risk to the contracting agency and can produce lower bids because bidders need less protection for unknown inflation.
Allowances and provisional sums
An allowance is not necessarily a guaranteed price. Determine whether it covers supply only or supply and installation, whether the owner selects the item, and how the difference between the allowance and actual cost is adjusted. An allowance that was too low should be documented as a change rather than silently absorbed.
Excusable delay, force majeure and extensions of time
Check what events qualify, whether supplier failure is included, how notice must be given, and whether the clause grants time only or also compensation. Many clauses require proof that the event affected the critical path and that reasonable mitigation was attempted.
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For U.S. federal contracts, FAR 52.249-14 states: “Except for defaults of subcontractors at any tier, the Contractor shall not be in default because of any failure to perform this contract under its terms if the failure arises from causes beyond the control and without the fault or negligence of the Contractor.” That federal rule is not an automatic term in private residential work or in another country; the signed agreement and applicable law govern.
Liquidated damages and notice deadlines
Find the completion date, any contractual float rules, liquidated-damages amount and the procedure for obtaining an extension. Missing a notice deadline can weaken an otherwise valid claim, so calendar every notice and update date.
5. Decide whether a substitute is genuinely better
Do not approve a substitute merely because it is in stock. Compare the complete delivered outcome, not just the catalogue price. Obtain written designer, architect, engineer and owner approval wherever the contract, code or permit requires it.
| Comparison point | Questions to answer |
|---|---|
| Delivered price | What is the item, freight, tax, handling, storage and installation cost? Is there a credit for deleting the original item? |
| Reliable lead time | Is stock physically allocated to this project, or is the date only an estimate? Can the supplier confirm dispatch and delivery? |
| Specification and code | Does the substitute meet the required performance, dimensions, ratings, fire or energy requirements, accessibility rules and approvals? |
| Warranty and installation | Will the manufacturer warranty remain valid? Are different fixings, tools, labour, training or inspections required? |
| Risk allocation | Who bears later price movement, delay, defects, rejected approval or performance failure? |
A cheaper substitute with an uncertain delivery date can cost more through idle labour, remobilisation and resequencing. If approval takes a week and the product saves only a day, it may not be the best option.
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6. Price the change transparently and obtain a written change order
Prepare a side-by-side calculation. Show the original allowance or quotation, the new supplier evidence, freight and labour differences, storage or disposal, credits for deleted work, and the schedule effect. Identify taxes and mark-ups according to the contract rather than applying an unexplained percentage.
State whether the adjustment is a one-time change or an indexed provisional amount, and specify what happens if the supplier’s date or price changes again. Include the revised product data, drawings, warranty information and approval record. Do not commit to the purchase, demolition or installation of changed work until the required written change order is signed.
Example change-order structure
- Identify the original item, quantity, contract value and required date.
- Attach the supplier’s dated notice and the replacement quotation.
- List the substitute’s technical compliance and approval status.
- Show added and deleted material, freight, labour, equipment and tax lines.
- State the net price adjustment and any extension of time requested.
- Define the validity period, payment timing and responsibility for future changes.
- Obtain signatures from the parties authorised by the contract.
7. Manage cash, procurement and future packages
For packages not yet ordered, identify long-lead materials during design and obtain time-limited quotations. Ask suppliers how long they will hold price and capacity, what deposit is required, and whether an early purchase creates storage, insurance, financing, warranty-start or damage risks.
Early buying can protect a critical date, but it is not automatically economical. Confirm that the design is sufficiently complete, the owner can fund the purchase, the material can be inspected and stored securely, and the warranty will not expire before installation. Record title and risk of loss while the material is stored.
Maintain a project contingency appropriate to the scope and uncertainty. Federal Highway Administration guidance describes 5% to 10% as a normal construction contingency and up to about 15% where scope creep and uncertainty are high. These are planning benchmarks, not a legal entitlement or a promise that a particular project will stay within them.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.8. Use objective indices when the contract allows escalation
If an escalation clause refers to an index, use the exact index, base month, measurement formula and publication source named in the contract. UK Cabinet Office guidance recommends official indices for escalation and notes that short-term escalation factors are easier to predict. Do not substitute a news headline or a different regional index without written agreement.
Location and period matter. The New South Wales Government’s 2025 discussion of building delays and prices cites a 13.4% increase in Sydney since March 2021. That figure describes the stated location and period; it is not a universal current inflation rate and should not be applied to another project without contractual authority.
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9. Practical response by situation
The supplier gives no firm date
Issue the contractual notice, identify the critical-path exposure, seek allocated stock from other approved suppliers, and price an expedited or substitute option. Keep the original order open only if cancellation terms and duplicate-order risk are understood.
The material arrives late but the completion date is still protected
Document the event and mitigation even if float absorbs it. Confirm that resequencing did not add cost or reduce quality, and close the event with the actual delivery and installation dates.
The supplier raises the price before delivery
Check quotation validity and the escalation clause. Request the supplier’s dated evidence, calculate the contract adjustment, and obtain a signed change order before accepting the increase where the contract requires one.
The owner refuses a compliant substitute
Record the proposed product, compliance information, price and lead time, then ask for a written direction. If the refusal affects completion, issue the required delay notice and quantify the resulting time and cost rather than making an unauthorised change.
The delay threatens liquidated damages
Update the critical path immediately, submit the extension-of-time notice with supporting records, and separate excusable delay from contractor-caused delay. Continue mitigation while the claim is reviewed; a notice does not excuse avoidable delay.
10. When professional advice is warranted
Have a qualified construction lawyer or contract administrator review the signed agreement, notices and evidence when the amount is material, the completion date is at risk, the parties disagree about a substitution, or a termination or liquidated-damages claim is threatened. Jurisdiction matters: New South Wales home-building guidance, U.S. federal procurement rules and UK public-procurement index practice do not automatically apply to a private project elsewhere.
Before signing, discuss the timeframe and budget with the builder or tradesperson and include reasonable allowances for commencement and completion uncertainty, as advised by the New South Wales Government. Clear procurement responsibilities and notice procedures are cheaper than arguing about them after a shipment is late.
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