Over the course of long-term projects, inflation of material prices often results in disputes between owners and contractors. Material and labor escalation clauses can be used as contractual tools to account for pricing adjustments due to changes in prices of materials, while forensic material escalation analysis can be performed to retroactively quantify material cost adjustments in a manner equitable to both owners and contractors.
Through the use of various pricing indexes and historical data, Spire Consulting Group can construct historical pricing profiles for construction materials. Our material escalation analysis is often a helpful tool in conjunction with the following services:
Material escalation analysis is an objective tool for dispute avoidance and claims mitigation if used proactively and is an objective tool for dispute resolution if used forensically. It can also be combined with a revised cost forecasting for an ongoing project to avoid further disputes.
Whether you are a contractor or subcontractor trying to prove material escalation or an owner attempting to defend against over inflation of material costs, Spire’s consultants are equipped to provide material escalation analysis to supplement your efforts.
Material escalation analysis can play a pivotal role proactively in the drafting of contract documents as well as forensically in the expert reports and witness testimony provided for litigation support.
For assistance with a construction cost escalation analysis on a new contract or an ongoing project, call our team or click here.