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Material Price Protection: How to Avoid the "Escalation Clause"

January 29, 20261 min read
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Material Price Protection: How to Avoid the "Escalation Clause"

In today's economy, the price of lumber, copper, and PVC can fluctuate by 20% in a single month. If you signed a fixed-price contract six months ago, who pays the difference? You do.

The "Allowance" Trap

Many contracts include "Allowances" for materials. They might allocate $2,000 for tile. But if tile prices go up, or if you can't find tile for that price, you pay the overage.

The "Escalation Clause"

Read your contract carefully. An escalation clause allows the contractor to pass on material price increases to you, even after the contract is signed.

How ModuBlox Helps

Our database is updated regularly with regional material pricing. When you get a tailored estimate from us, you get:

  1. Current Market Rates: Pricing based on today's reality, not last year's data.
  2. Scope Clarity: We define the grade of material (Economy, Standard, Premium) so you know exactly what that price buys you.

Protect your wallet by starting with accurate data.