AFTERDRAFT

What does escalation mean in construction?

Short definition

Escalation is an increase in labor, material, equipment, or subcontract cost over time.

Longer explanation

Escalation may be included in estimates, allowances, contingencies, alternates, or contract clauses when future pricing is uncertain.

Example in context

The project team reviewed the escalation during the construction phase.

Common users

  • Owners
  • Architects
  • Contractors
  • Construction managers

Related terms