The Nearly Forgotten Price Escalation Clause: Legal and Economic Pitfalls

The aforementioned price escalation clause presents both challenges and opportunities – one only needs 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 view price escalation clauses and what practical alternatives exist. 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 price escalation clauses.

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The following topics were discussed:

• Opportunities and challenges of price escalation clauses from the perspective of construction companies and financial experts.
• How industrialized construction helps mitigate price escalation risks through rapid construction.
• Other Ways to Address the Supply Chain Crisis and High Inflation
• The significance of the Price Clause Act and its function
• The Function of the Cost Element Clause and its Significance for Construction Contracts
• Escalation clauses and performance reservation clauses
• Additional regulations applicable to public contracting authorities

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