Material escalation clause

Definition

A clause letting a quoted job absorb a rise in material cost, which the customer still approves.

Why It Matters

Ohio measures the gap and never asks what caused it. Under twenty five thousand dollars the consumer rule requires that the bill not exceed the estimate by more than five dollars or ten per cent, whichever is greater, unless the customer approves a larger amount before the work is finished, and materially understating an estimate is deceptive on its own. At or above that figure the job leaves the consumer statute for the home construction rules, which recognize exactly two price forms that escape the excess-cost notices: a firm price where the supplier will not charge the owner any excess costs, and cost-plus. A fixed price carrying an escalator is neither, so writing one puts the contract inside the notice regime instead of outside it. The clause buys a right against the customer; it buys no relief from the floor. Ask which price form the contracts state.