Firstly, I would like to comment on the success of this year's conference. Many important topics were raised and feedback has been extremely positive. I will ensure that important issues are carried forward during the coming months.

One such issue is the increasing cost of raw materials. The rising price of oil has already affected the price of petrol. The demands on fuel and raw materials from expanding economies in the Far East and China means that these rises will continue. This presents an increased risk for members when providing fixed price tenders to customers.

We need to monitor costs of materials when tendering. As fluctuation clauses are rare in contracts, members can qualify their tenders in respect of materials comprising copper and steel for example, while prices are volatile. We can also minimise risk by reducing tender acceptance periods.

My aim is to ensure that we keep members aware of such issues and continue to provide strategies to mitigate against them. As such, we have issued circulars to members suggesting ways to limit their exposure to the risks.

Source

Electrical and Mechanical Contractor

Postscript

Alan North