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In my times prices didn't go up as fast as mow, but it still happened.
I always gave fixed quotes to customers, valid for 30 days and factored in a mark up on material (diesel and time).
Frankly I can't see a 100k project getting the builder on a loss because of material price hike.
Any builder would mark up the material by 10-20% (some even more), and the price is not going up by that much in 30 days.
Exactly -the simplest model. Fixed price, built-in risk pot to handle any possible margin erosion. Works for most people most of the time. Get's trickier if the time between quote and completion is very long and there are e.g. some very high priced materials in the build. The risk of price fluctuation (and maybe exchange rate variation) is much higher. The risks are higher. Either the risk pot has to get bigger or you offset the risks to the client. It's whatever works and whatever the contract ultimately says.