b'COVER STORYthan 20 years. Canadas recent trade surplus was a first in many years due in most part to demand for Canadas raw materials.The pricing volatility associated with the pandemic is far from over. Material price increases are undermining the bid prices of project contracts. High prices and increasing demand could result in either construction costs becoming untenable or a significant number of construction business failures.So what can contractors do? According to Mollenhauer, Contractors should protect themselves against contract terms that increase risk in these uncertain times. Avoid lump sum payment contracts and ensurethe language is clear on all contract conditions, particularly the length of time before the contract is awarded.Mollenhauer adds that a maximum time for awarding the contract in the agreement can help to protect contractors from higher prices. Other options include collaborative procurement and the use of progressive design-buildcontract principles.Consider taking advantage of sale pricing on materials and stock pile commodities if the opportunity arises, advises Mollenhauer. The use of just in time inventory is currently not the way to go. Most importantly, get engaged in the process of protecting your business against a pricing regime that may be here for some time. 16Quarter 32021 BUILDERSDIGEST'