Escalation Clause

Escalation clause definition. Learn how to protect your construction profit from sudden spikes in material prices like lumber or steel.

Calculation Formula

Adjusted Price = Base Price + (Material Index Increase × Quantity)

Real Contractor Example

A contract includes an escalation clause. If the price of copper rises more than 10% before purchase, the owner covers the difference.

Put This Into Practice

Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.