Practice - Cost Escalation
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Practice Questions
Test your understanding with targeted questions
Define cost escalation in your own words.
💡 Hint: Think about how economic changes affect pricing.
What is a price adjustment clause?
💡 Hint: Consider what kind of situations would trigger a price change.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does cost escalation refer to?
💡 Hint: Think about when values change over time.
True or False: Price adjustment clauses ensure that any increase in costs can be adjusted in the contract.
💡 Hint: Consider what clauses do in contracts regarding cost changes.
1 more question available
Challenge Problems
Push your limits with advanced challenges
During a project, costs unexpectedly rise. Create a strategy on how to manage this escalation considering all stakeholders involved.
💡 Hint: Think about what steps promote transparency and cooperation.
A cost escalation clause states that if material costs exceed a certain percentage, the contractor can request a price increase. If steel prices rise from $200 to $250 per ton representing a 25% increase, determine if this clause applies.
💡 Hint: Use simple math to assess the percentage increase.
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