Middle East Conflict Creates Uncertainty for Product Supply

The war in Iran poses risks to businesses across the economy, and the Contract Flooring Association (CFA) is working with the Construction Products Association (CPA), Build UK and the Construction Leadership Council (CLC) to monitor the potential impact on the sector. Whilst direct risks to construction products and materials are expected to be low, there are concerns regarding price inflation triggered by a rise in energy costs. Members are advised to review their contracts and the provisions for managing cost escalation during a project.

Richard Catt, CEO of CFA, comments: ‘The CFA will continue to monitor across all of our communications channels and update members accordingly. As well as joining CPA and Build UK calls, we also attend the CLC’s regular sector updates on the work it is doing. In addition, all CFA members can benefit from the opportunity to speak to the CFA’s legal and contract helpline to obtain advice. This information is available through the Member’s Area of the CFA website.’

Click to visit the CFA Member’s Area.

In response to the ongoing conflict in the Middle East causing disruption across supply chains and creating further inflationary pressures, Build UK has also updated its guidance on Managing Price Inflation, produced with Wedlake Bell LLP, which sets out practical ways to manage the risks of cost escalation over the life of a project, including the use of fluctuations provisions.