March 2, 2022

To all MCABC Members,

MCABC is aware and concerned to learn that members of the mechanical contracting industry were recently notified that, effective yesterday, Tuesday, March 1, the price of cast iron purchased through distributors in North America was increased by as much as 18 – 22 per cent on pipe and between 15 – 220 per cent on fittings and clamps.  This is a product core to the mechanical contracting industry and there was no opportunity to consider this rapid cost escalation as part of past tendering processes.

This increase, we have learned, applies to both future and current orders, the latter of which delivers an extraordinary, and potentially detrimental, hit to mechanical contractors who may be expected to honour the pricing commitments within their respective contractual arrangements. Disregard for the importance of advanced notice compromises the viability of the mechanical contracting industry and, potentially threatens delivery of projects critical to BC’s infrastructure.

We know that the pandemic has impacted the supply chain and related transportation costs. We also know that at minimum, it is not unreasonable to expect (a) 30 days universal notice and (b) a commitment to honour orders already placed that fulfill existing projects and tenders. Grandfathering orders underway and a staged increase over the next six months would enable mechanical contractors to fulfill their contractual obligations and permit time to consider costs for current and future tendering.

This price escalation is unprecedented and its potential impact severe. We encourage members of the mechanical contracting industry to speak up – to share your concerns and the impact to your respective companies with distributors, suppliers and manufacturers.

We will be reaching out to the manufacturer to share our members’ concerns and to offer facilitation of a discussion. Our goal is to ensure that MCABC’s membership stays informed as we progress this concern on your behalf.

Sincerely,

Kim Barbero

CEO