Material Substitution Provision

Material shortage issues continue to plague the roofing industry, causing delays for residential and commercial projects. There currently are shortages of several key products, such as fasteners, plates, polyisocyanurate, cover boards, foam adhesive and sealants, among other products. As storm season approaches, the supply chain faces additional pressure to meet the demand of roofing contractors throughout North America.

Contract terms relating to material availability and price acceleration should be examined closely. One contract provision many contractors often overlook is the reasonable substitution clause, which allows a contractor to replace a specific material or piece of equipment with an equal and reasonable substitute.

Roofing contractors should aim to include a robust substitution provision in their contracts to give themselves the opportunity to use equivalent materials if there is a shortage. Below is a contractor-friendly provision roofing contractors can insert into their contracts or contracts they receive from their customers:

In the event that any specified material or equipment becomes unavailable either temporarily or permanently after the contract is executed, provided that such availability is a result of factors beyond Contractor’s control, then in the event of temporary unavailability, the contract time shall be extended to reflect the duration of time that the contractor is delayed by the unavailability, and in the case of permanent unavailability, the contractor shall be excused from providing said material or equipment and allowed to provide an available substitute. To the extent an available substitute is provided by Contractor under this provision, any increase in the cost between the originally specified material and equipment and the substitute shall be paid by the Owner to the Contractor.

Date : Jan. 01, 0001