The Difference Between Provisional Sum and Cost Escalation Clauses

Navigating construction contracts demands a clear understanding of provisions that manage uncertainty. Provisional sum clauses and cost escalation clauses are often confused, but they operate differently and protect different commercial risks.

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The blog published by ConstructSupport Australia (CSA) is intended as general information only and is not legal advice. Readers should consult CSA on any legal queries concerning a specific situation.