Latest / Property Mastermind Podcast with Bob Andersen & Hilary Saxton
The Contract Clause That Could Wipe Out Your Profit (Ep: 262)
Escalation clauses can look like a simple way to keep a builder happy or manage uncertainty. Get one wrong and it can quietly eat your development profit.
In episode 262, Bob and Hilary break down escalation clauses from a developer's point of view: what they actually are, where you will bump into them (usually the building contract), and why builders push for them when material and labour prices feel unpredictable.
Bob shares how he has used escalation on large, staged land purchases, why they rarely suit smaller old-house-on-land projects, and how you can isolate an escalation to specific…
The skinny
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