The Road Transport Contractual Chain Order 2026 (Order) commenced on 21 April 2026.
At first glance, this does not look like a construction issue.
But if your projects involve trucks, spoil removal, cartage, aggregates, premix, plant transport, material deliveries or transport-heavy subcontractors, the Order is likely to affect your project costs and margins.
What Does the Order Do?
In practical terms, the Order allows fuel costs to move through the transport chain, so transport operators are not left carrying those costs alone.
From 21 April 2026, businesses engaging certain transport operators or owner-drivers are required in some circumstances to adjust transport rates to account for fuel cost increases above the baseline fuel price set under the Order.
These adjustments are generally reviewed fortnightly or twice per calendar month.
The Order may also require parties higher up the chain to take reasonable steps to ensure fuel cost adjustments flow through the contractual chain.
Why Contractors Should Pay Attention
If your projects rely on transport-heavy work, fuel-related increases are likely to flow into your project costs.
Those costs are likely to appear through:
- subcontractor invoices
- variation claims
- requests to adjust rates
- transport related claims
- increased cartage, delivery or plant movement costs
The key question is whether your contract allows you to recover those costs upstream.
Where Contractors Can Get Caught
Fuel cost pressure quickly flows through to contract administration.
Your position will usually depend on:
- rise-and-fall clauses
- fuel escalation mechanisms
- change-in-law clauses
- variation rights
- notice requirements
- time bars
If your contract is fixed-price, silent on fuel escalation, or strict about notices, the additional costs can stay with you.
The Order creates fuel adjustment obligations within the transport chain, but your ability to recover those costs still depends on your contractual rights.
If notice deadlines are missed, the cost can stop with you.
Why Timing Matters
Many construction contracts have strict notice requirements.
Where a contract requires notices within 7, 14 or 28 days, waiting until the invoice arrives can already be too late.
The issue is not whether the fuel increase exists. The issue is whether your entitlement to recover it has been preserved.
Missed notices can weaken your legal position before the dispute even starts.
What Contractors Should Do Now
Contractors should take the following practical steps now:
- Identify projects involving transport-heavy scopes or subcontractors.
- Review whether contracts already deal with fuel cost increases.
- Where no mechanism exists, communicate with transport providers early and document any agreed approach in writing.
- Check whether notices or claim deadlines apply.
- Keep clear records of fuel-related claims and communications.
When the Cost Becomes a Live Claim: Where CLAWZ Fits
CLAWZ centralises notices, deadlines, variations and project records so live contract obligations don’t get buried in inboxes or missed under pressure.
A contract clause only helps if your team acts on it in time.
How Level Playing Field Lawyers Will Help
Level Playing Field Lawyers will assist contractors with reviewing live contracts, assessing fuel cost recovery risks and advising on notices, claims and contract rights.
Fuel cost recovery is now a live issue for transport-heavy construction projects.
If your projects rely on trucks, deliveries or cartage, the question is simple:
Can the cost be passed upstream, or will it stay with you?
Disclaimer: This article provides general information only and is not legal advice. You should seek advice about your specific contract, project and circumstances.
