Our Clients Ask Us- Fuel Surcharges

Q: Upon reviewing a bill to the association from one of our contractors, I noticed a fuel surcharge that hasn’t been on the bill before. Is the contractor allowed to arbitrarily tack on this fuel surcharge?

A: MAYBE. It depends on the provisions in your contractual agreement. If there is a specific reference to a fuel surcharge, then yes, the contractor can probably pass the cost to the association. If there is no reference to a fuel charge in the contract, then it may still be possible for the contractor to tack on the charge based on other provisions in the contract. The association could fight about the legality of the added cost, but it would require time and attorneys fees, and ultimately the decision of a Judge as to whether or not the surcharge is allowable. To prevent this situation, before entering into an agreement, make sure there is a reference to a fuel charge in the contract to prevent any confusion.

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