Manufacturers Pushed at Least Two Rounds of Price Hikes. Dealers, Check Your Contracts.

Trent Cotney, an attorney who advises contractors on their contracts, says he knows of at least two rounds of price increases from manufacturers — and he says contract language is increasingly important. Cotney told the Best of Success Podcast Show that prices for building materials have risen. He also flagged AI creeping into hiring decisions and a customer complaint that starts in the gutter.

Three Risks, One Podcast, and the Contract Language That Has to Keep Up

Attorney Trent Cotney, a partner at Adams and Reese, appeared on the Best of Success Podcast Show with Roofing Contractor executive director Jill Bloom. He brought three issues he thinks contractors need on their radar: tariffs and rising material prices, AI in hiring, and granule loss on asphalt shingles.

The money issue comes first. Cotney said he knew of at least two rounds of price increases from manufacturers and told contractors to get ready for more. He also said you cannot always trace a price increase back to one specific tariff, because a finished product is made of many parts.

His summary was blunt: "One way or the other, material prices have gone up."

Then AI. Cotney said the technology is outrunning the rules, because it changes faster than the law does. AI and related tools can be used to screen applicants, do certain background research, weigh risk and look at public social posts. He also warned about using it with people you already employ, because private company or staff data can end up inside someone else's system by accident.

He pointed to proposed legislation in New York that would set notice rules for employers that use outside AI or monitoring tools in employment decisions. It is proposed, not final law, and Cotney said the real signal is national — expect many more state efforts to regulate AI in hiring.

Last, granule loss. "Some granule loss is normal," Cotney said, especially while shingles are shipped and first put up. He said makers plan for that expected loss when they make the shingles. The warning sign is heavy loss that exposes the asphalt, which can raise concerns about sun damage, early wear and a roof that does not perform as it should.

My read: the part that costs you money is not the roof. It is the phone call. A homeowner who finds granules in the gutter or under a downspout may decide the crew did something wrong, even when the shedding is normal. Cotney's advice is to get ahead of that reaction before it turns into an argument.

Why This Is Hitting Now — and Why One Tariff Is Often the Wrong Question

Tariffs are still a worry for builders, and Cotney said the effects reach further than a lot of contractors assume. Steel prices and imported equipment are the obvious examples. The sneaky part is that a maker's parts or finished goods can be hit by a tariff, or tariffs can push prices up across the board.

That is why asking which single tariff caused a move is often the wrong question. A roofing system is a set of many parts, and tariffs can hit those parts in different ways.

The AI piece is hitting now for a different reason: the tools changed fast. Cotney said the tools changed a lot in a single year, and what they can do a year from now could look nothing like today. Fast technology, slow law — that gap is where the risk sits.

And the granule issue is hitting now because it can also be a customer-expectation problem, though Cotney says the maker's warranty is the remedy when the material itself is defective. Cotney's recurring theme is that no one can predict every problem, but you can write protections in before it shows up.

What This Means If You Sell Boats

My read, and I will label it as mine: this podcast was aimed at roofers, but none of these three risks are roofing risks. They are selling risks. Here is how I would expect them to show up on your lot.

Picture a boat dealer. You quote a package in March and deliver in May. Between those dates, the cost of what goes into that boat can move, and if your buyer already signed a number, that difference comes out of your margin. Cotney's recommendation is for agreements that account for price swings and allow an adjustment when costs rise. He also said contractors should tell customers about that risk before the job starts. On a boat deal, that is one sentence at the desk, before the deposit.

Now flip the granule problem around. Cotney said homeowners who find granules in the gutter or under a downspout may think the crew did something wrong, even when the shedding is normal. Your version might be a seam, a finish, a color, or a scuff from transport. The fix he recommends is language that says some granule loss happens on its own and makes clear who answers when the material itself is defective.

Picture your business hiring a salesperson. If you use an AI tool to screen resumes, Cotney's caution applies here too: staff records and company details can land in an outside system by accident. And the legal side is moving. If you use AI to recruit, hire or manage people, he said to watch the rules taking shape around the tool, not just its features.

How to Use This Week

1. Find the price clause in your sales agreement. Ten minutes, today. Ask one question: if material costs move between the quote and delivery, can I adjust the number? Cotney recommends contracts that build in room for price swings and let the number change if costs jump.

1. Add a price acceleration provision if you do not have one. Cotney said these provisions helped in earlier rocky stretches, including COVID-19, natural disasters and material shortages, and he recommends them for commercial and residential jobs alike. My read: the same clause belongs in a boat quote.

1. Say it out loud before the deposit. Cotney said contractors should tell customers about that risk before the job starts. One sentence at the desk. Here is the idea: tell the buyer the number holds for your window, then you will re-price before they sign, because what goes into these boats moves.

1. Write the normal paragraph into your paperwork. Cotney recommends wording that says some shedding is normal and spells out who answers when the material itself is defective. He also said to spell out that the maker's warranty is the fix when the material itself is the problem, so the contractor is not left carrying the cost of a product it did not make. For a boat dealer, that means a line saying some settling and finish variation in the first few weeks is normal, and that if the material itself is defective the maker's warranty is the fix and you will help file it.

1. Check your trade association for contract resources. Cotney said trade groups can be a good place to find contract resources. If yours has one, start there instead of drafting from scratch.

1. Audit the AI you use for hiring. Cotney warned that staff and company details can slip into an outside system by accident. If you use AI to recruit, hire or manage people, he said to watch the rules taking shape around the tool, not just its features, and he pointed to proposed New York notice rules as a signal of where regulation could be headed. One line for your next hiring meeting: before we put any resume or employee file into a screening tool, tell me what data leaves our system, where it goes, and who can see it.

1. Put one name on it. The contract clause, the script and the AI audit are three small jobs that never get done when they belong to everybody. Pick the person who writes your quotes and hand them this list.