"We are locked into a strict fixed-price contract with the project owner. However, our local excavation and concrete subcontractors are hitting us with massive back-claims, threatening to walk off the job site unless we adjust their rates to match local wage hikes. We are stuck in the middle, unable to bill the owner for more money but forced to pay our crews more to keep the project moving."
Your client has locked you into a flat payment rate, but your subcontractors are demanding more cash to cover their own rising labor and material costs. If you say no, they will walk off the site, leaving you with an unfinished project and massive late penalties.
Operating under asymmetrical contracting structures—where the prime contract is fixed-price but subcontracts allow for cost-plus or variable-rate billing—exposes the prime contractor to 100% of the operational and inflationary "squeeze".
The proprietary contract engine programmatically enforces Back-to-Back Escalation Alignment. When you onboard a subcontractor, our system ensures their SOW incorporates the exact same FIDIC Clause 13.8 coefficients and index anchors as the prime contract. The engine automatically links subcontractor progress claims to your outgoing owner invoices, ensuring that any subcontractor price escalation is symmetrically mirrored and billed directly to the asset owner, protecting your margins from asymmetric compression.
Asymmetric contract structures place the entire burden of global inflation squarely onto the prime contractor. VALZOX automates back-to-back index alignments to structurally push volatility down the supply chain.
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