The blows just keep coming
These times are so much reminding me of the late 1970's when inflation was rampant and fuel shortages abounded.
We have had serious inflation for a year, followed by logistics issues. These problems have not gone away.
Now we are back into high fuel prices, both gasoline and diesel. These will affect your project, too. How will they manifest themselves?
Two ways. First, if you are doing any greenfield work that involves earth moving, expect a hand out for more fuel from your grading contractor. They likely already have provisions for this in the fine print in their contract; if not they will hit you up on a force majeure basis.
Second, all logistics, from FedEx and UPS to your major haulers are going to want more for fuel to bring you everything.
These are more reasons why every budget should have an escalation line in it, just like we had in days of old. You need to categorize these reasons for overruns.
