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escalator clause
(redirected from escalation clauses)

   Also found in: Dictionary/thesaurus, Legal 0.01 sec.
Escalator clause
Provision in a contract allowing cost increases to be passed on. In an employment contract, for example an escalator clause may call for wage increases in line with inflation.

Escalator Clause
A clause in a contract stating that a certain payment increase will grow each year according to some formula stated in the contract. For example, an employment contract may have an escalator clause allowing for small increases in salary each year. An escalator clause usually exists to protect one party to the contract from inflation.

escalator clause

See escalation clause.



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And look to see if there are any escalation clauses - if you're booking in advance and the hire price increases, you may have to pay an additional fee.
Also, compare current prevailing prices, escalation clauses, pass-throughs, inflation adjustments, up-front fees, cancellation fees and penalties.
Don Weaver, a partner in Weaver-Bailey Contractors of El Paso (White County), said the Federal Highway Administration has approved a ruling, in effect this month, that allows states to put escalation clauses in future contracts, but there's no "look-back" provision.
 
 
 
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