Look at the clause, it may be linked to a general retail price index (RPI) in which case the allowable increase will generally be lower than the materials you are concerned about.
It may be (unusual if it is) the actual variation in price of the material in question in which case you are entitled to the full amount.
The client has taken the risk on and is therfore liable to whatever the allowable cost is.
As a general guide construction material increases usually average out at about 2 to 3% above RPI.
Member for
20 years 10 monthsRE: Increase in Prices of Construction inputs
Shahzad,
Look at the clause, it may be linked to a general retail price index (RPI) in which case the allowable increase will generally be lower than the materials you are concerned about.
It may be (unusual if it is) the actual variation in price of the material in question in which case you are entitled to the full amount.
The client has taken the risk on and is therfore liable to whatever the allowable cost is.
As a general guide construction material increases usually average out at about 2 to 3% above RPI.