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Escalation clauses can help contractors mitigate price increases

October 11, 2019

Construction material prices are sometimes an unknown when planning a project. Whether related to tariffs, supply chain concerns or a volatile raw materials market, there could be fluctuations that can impact the bottom line for both owners and contractors.

For instance, the price of precast concrete products increased 4.4% from September 2018 to September 2019, the price of cement went up 2.2% and the price of construction equipment and machinery also increased by 2.2%, according to Bureau of Labor Statistics data compiled by Ken Simonson, chief economist of the Associated General Contractors of America.

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