The almost forgotten price escalator clause - legal and economic pitfalls
What is the price escalator clause all about? What are the legal and economic pitfalls to be aware of?
The aforementioned price escalator clause brings with it some challenges but also opportunities - you just have to be aware of them!
Moritz Koppe, Managing Director of PROBIS, explains in the 9th podcast episode of ANWALT & ARCHITEKT how construction companies and financiers look at price escalator clauses and what practicable alternatives there are. Together with Stefan Stenzel, he was a guest of Norbert Reuber, David Poschen, Juan Carlos Klug and Max Hoederath to bring some clarity to the complexity of the price escalator clause.
In the conversation, the following topics were talked about:
- The opportunities and challenges for price escalator clauses from the perspective of construction companies and financial experts
- How system building helps reduce the risk of price increases through rapid construction
- Other ways to deal with supply chain crisis and high inflation
- The importance of the Price Clause Act and its function
- The function of the cost element clause and its significance for construction contracts
- Tension clauses and performance reservation clauses
- Additional regulations that apply to public contracting authorities
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