Rapidly rising material costs have created many challenges for all of us in the building industry. One important tool to ensure that your business is protected in the event of rising prices is an “escalation clause.”
A recent study from the NAHB found that nearly 50% of builders have added one over the last year.
Don’t be left behind and leave your profit up to market chance!
Click HERE for a sample Escalation Clause document.
Items you may want to list include (but are not limited to):
- 7/16” OSB
- ½” CDX
- 2×4 & 2×6 Doug Fir
- 2×4 & 2×6 Pressure Treated
- Metal roofing/siding
- Composite shingles
- Composite/PVC Decking
- Engineered Lumber (I-joists, Glulams, & LVL’s)
One very important disclaimer: The sample language provided in this clause is intended for general informational purposes only, and may not be appropriate for some agreements. Care should be taken in the drafting of any contractual clause, and it is recommended that an attorney be consulted concerning both applicable law and the phrasing of particular contract provisions.
We hope this information is helpful and will continue to work to provide you the materials you need as well as resources to help you be more effective in your business.