We counseled a modular construction company client navigating a challenging fixed-price residential project amidst the unprecedented market volatility caused by the COVID-19 pandemic. The project, involving three single-family homes built using modular construction, was structured in phases. While Phase 1 neared completion, unforeseen industry-wide supply chain disruptions and escalating material and labor costs significantly affected the financial viability of Phase 2. We analyzed the existing contract and provided guidance on potential strategies for mitigating losses while avoiding breach of contract. This included a careful review of contractual obligations and options, advising on effective communication with the project owner, and exploring potential avenues for cost relief. We also provided strategic counsel on navigating volatile market conditions, including alternative pricing models for future projects to better manage unpredictable cost fluctuations. This proactive approach aimed to protect our client’s financial stability while preserving the client relationship and reducing the risk of litigation.
