Contract prices are established at the start of construction, and for longer projects the effects of construction cost inflation will impact the insured value at the end of construction. Construction activity in Canada has been operating at a feverish pace over the past decade, and continues to outpace regular inflation by a significant margin. It is not uncommon for the rebuilding cost on a three year project to increase by over 15% by the time it is completed. Additionally, when an insurer calculates the required amount of insurance required, they are influenced by their particular contractual obligations in the event of a claim. They are often in a position of having to pay higher prices to ensure a more timely completion of a claim and do not have the option of shopping around for lower pricing.