The construction industry is highly susceptible to inflation - especially when the price of building materials and labour spiral out of control. This can lead to unwanted outcomes such as cost-overruns or an outward cancellation of projects. Given the current inflationary market conditions, it is important to understand how construction contracts handle the risk of inflation/price escalation. The essay highlights common issues that arise from the use of cost fluctuation clauses and explores various contract pricing models for alternative solutions.
Publication year
2023