What do you mean by Escalation clause? how can we use it?

In case of a construction project, escalation clause will usually be applicable in projects which has longer duration. Because in longer duration projects the quoted rate might not match with market rate after several months. Future market price also cannot be estimated with accuracy while quoting for the project. So the escalation clause will be mutually agreed by both the client and the contractor and the contrator will be elgible to claim the escalation after the stipulated time perioed mentioned in the clause.

increase in price of contract due to increase in price of inputs