Cost
Escalation Analysis
Risk
Management
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,
CMI
can construct historical pricing
profiles for construction
materials. Our material
escalation analysis is often a
helpful tool in conjunction with
the following services:
-
Contract administration
-
Construction cost estimating
-
Mediation and arbitration
support
-
Litigation support
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.
Whether
you are a contractor or
subcontractor trying to prove
material escalation or an owner
attempting to defend against
over inflation of material
costs, CMI’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.
