Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions) Our first question comes from the line of Chris Manuel with KeyBanc Capital Markets. Please go ahead.
Chris Manuel
Good morning gentleman.
Michael Harlan
Good morning Chris, hi.
Chris Manuel
Couple of questions for you. First, with respect to the backlog that you have and you talked about some deferrals kind of rolling through, mostly later in the year. Can you help us a little with some of the sensitivity in those backlogs? Do you have the ability to put escalators or de-escalators for diesel in those? So how price-sensitive are those, number one. And number two, could you give us a little more color as to what you think may be influencing some of the deferrals in those backlogs?
Michael Harlan
Well it's going to vary depending upon the nature of what's in the backlog as to the flexibility on escalators. We clearly have the ability to, and do in most of our contracts, have escalators for expected raw material increases. And as the projects extend over multiple quarters to take into account just increase in overall pricing. To the extent the backlog is less long term, more fixed price then yes. We have the flexibility to add in fuel surcharges. I think we're doing a better job in our fuel surcharge in achieving those and collecting those, particularly out in Northern California. They're doing a really good job of that and have been for the last couple of years. As far as what's driving it, the specific market that I'm referring to now, that I referred to in my comments, was Northern New Jersey where we had two projects that were scheduled to begin in the second quarter and they've now been pushed to the third quarter. And really it's just a function of the developers wanting to make sure that they're secure in their occupancy expectations, whether it's more of a retail project or an office type project before they get started on some of these things. And I think people are just being extremely cautious and I don't think you're going to see a whole lot of spec activity out there for the next several quarters.
Chris Manuel
So if I can just summarize. It sounds like with the price side and the backlog side you anticipate being with that price cost spread to at least be neutral if not favorable for the full year with where you are?
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