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ESCALATION CLAUSE FOR SPECIFIED BUILDING MATERIALS The contract price for this residential construction project has been calculated based on the current prices for the component building materials.
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How to fill out cost escalation sample clauses
How to fill out cost escalation sample clauses
01
Identify the parties involved in the contract
02
Define the base cost for the project
03
Specify the factors that may result in cost escalation
04
Outline the procedure for calculating the escalated costs
05
Include a timeline for when the cost escalation clauses will come into effect
Who needs cost escalation sample clauses?
01
Contractors who want to protect themselves from unexpected cost increases
02
Project owners who want to ensure budget certainty for their projects
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What is cost escalation sample clauses?
Cost escalation sample clauses are clauses in a contract that outline how costs will be adjusted in the event of certain specified increases in costs.
Who is required to file cost escalation sample clauses?
Parties involved in a contract or agreement that may be affected by cost escalations are required to include cost escalation sample clauses in the contract.
How to fill out cost escalation sample clauses?
Cost escalation sample clauses can be filled out by specifying the items or circumstances that would trigger a cost escalation, detailing how the adjusted costs will be calculated, and outlining the procedure for notifying the other party.
What is the purpose of cost escalation sample clauses?
The purpose of cost escalation sample clauses is to protect the parties involved from unexpected increases in costs that may impact the profitability or feasibility of the project.
What information must be reported on cost escalation sample clauses?
Cost escalation sample clauses must include details about the items or circumstances that would trigger a cost escalation, how the adjusted costs will be calculated, and the procedure for notifying the other party.
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