One federal government agency has instructed its contracting officers to deny contractor claims for additional compensation due to inflation-related material price escalations. The only exception to that instruction is where the contract contains an economic price adjustment clause. But does a contractor have any other avenues for relief where the contract does not have an EPA clause?
One potential option for contractors may be through common law economic excuse doctrines. For example, under the doctrine of commercial impracticability, a contractor could argue that its performance should be excused because the construction material cost increases were not foreseeable by either the owner or the contractor.