An escalator clause is a clause in a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined.
Escalator clauses are quite common in construction contracts to cover unexpected costs due to fluctuations in the prices for raw materials, fuel, and labor during the course of the construction project.
This subject is often taught as part of a Management or Economics degree at university.
Famous quotes containing the words escalator and/or clause:
“They had their fortunes to make, everything to gain and nothing to lose. They were schooled in and anxious for debates; forcible in argument; reckless and brilliant. For them it was but a short and natural step from swaying juries in courtroom battles over the ownership of land to swaying constituents in contests for office. For the lawyer, oratory was the escalator that could lift a political candidate to higher ground.”
—Federal Writers’ Project Of The Wor, U.S. public relief program (1935-1943)
“Long ago I added to the true old adage of “What is everybody’s business is nobody’s business,” another clause which, I think, more than any other principle has served to influence my actions in life. That is, What is nobody’s business is my business.”
—Clara Barton (1821–1912)