March 2, 2022
Mechanical Contractors Need Price Protection on Current and Past Cast
Iron Orders to Enable a Successful Transition
To all MCABC
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.
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
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.
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.